Inspection in case of Private Limited Companies
In our point of view, to start a business as a Private Limited Company is the easiest and simplest form of business. In today’s world, many people are opting for a Private Limited Company just because it is easy and very simple way to form.
If you are planning to raise funds, private limited company should be the preferred choice of business. Before taking a long term and crucial decision you need to know what really is a Private Limited Company?
What is Private Limited Company?
A private limited company, or LTD, is a type of privately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 200, and restricts shareholders from publicly trading shares.
In other words, a type of company that offers limited liability or legal protection to its shareholders is known as Private Limited Company. If any person wants to do business globally then it is the only way which provide 100% Foreign Direct Investment without any prior government approval.
Now let us discuss about inspection in case of Private Limited Company
Generally the word inspection means examination, measurement, testing and comparison of materials or items. An inspection determines whether the material or item is in proper quantity and condition or not. The term inspection has a wider meaning.
In relation to Private Limited Company, inspection refers to checking or scrutiny of documents of companies. Such inspection can be done in prescribed way provided by Ministry of Corporate Affairs.
Moreover, inspection plays a very important role to gather information about various companies no matter where it is formed or incorporated. The documents referred by the user are the documents which are filed by the registered Companies/LLPs as a legal compliance and further got approved by the respective authority i.e ROC, Central Government, once these documents are approved by the respective authority, it becomes a public record and is therefore made available to the public for inspection.
Procedure to inspect the documents of Private Limited Company
Step 1- First logging to Ministry of Corporate Affairs website i.e. www.mca.gov.in.
Step 2- For a new user, first register yourself as a registered user.
Step 3- Once the user is registered, he/she has to login under MCA.
Step 4- After login click on view public document under MCA services
Step 5- A dialogue box is shown in which you have to fill the required details like name, CIN
Step 6- Select a type of document and year which a user want to inspect
Step 7- Click on the submit button and pay amount of Rs 100.
Step 8- Inspect the desired documents and download.
Step 9- This facility will be available only for three hours after payment.
So, these are the steps for inspection of documents of Private Limited Companies. These documents are mainly the documents relating to incorporation , charges, changes in directors, annual returns, balance sheet, etc, Any person can inspect the documents online by payment of specified fee.