For a Startup registered as a private limited company in India, there are certain compliance requirements laid down by the Companies Act, 2013 and other regulatory bodies that need to followed and adhered to from time to time. Failure to adhere to such regulations would lead the startup to penalties that could severely damage your business and harm the reputation that you have worked so hard for. Keeping this in mind, we have curated an annual compliance checklist for startups in India.
In our previous posts, we have examined the pros and cons of registering a private limited company in India. In this post, we shall examine the capital structure of a private limited company.
Kinds of Share Capital:
A private limited company can have –
1. Equity Share Capital with voting rights and equity share capital with differential rights as to dividend, voting or otherwise
2. Preference Shares