GET IN TOUCH
Private Limited Company Registration
A Private Limited Company Registration is the most popular form of corporate legal registration in India. Registrar of Companies (ROC) appointed under Section 396(2) of the Companies Act, 2013 by the Ministry of Corporate Affairs (MCA), is vested with the primary duty of registering companies and of ensuring that such companies comply with the statutory requirements of the Act. A company shall be registered with the ROC of the state under whose jurisdiction the proposed company’s registered office will be situated. It can be initiated with a minimum of two Directors (Individuals only) and two Shareholders (Individuals or Corporate entities). Both Directors and Shareholders may or may not be the same person.
A Private Limited Company is preferred as it ensures limited liability and provides a separate legal entity to the business. The company incorporation procedure results in clear ownership of the company defined by the share capital. Incorporation of a company is the first step in scaling your business as it paves the way for outside funding while enabling you to attract top talent by offering stock options. However, one needs to take into account mandatory audits and higher compliance which could be tough to maintain. On the other hand, higher compliance will lend better credibility to your business than any other form of incorporation of a company in India.
Not just one or two but there are numerous reasons why you should go for private limited company registration. Let’s find out what they are:
- Simple Registration Process
Private Limited Company can be registered by just two or more persons, by complying with the prescribed limited formalities as per the Companies Act, 2013.
- Limited Liability
Limited liability is one of the greatest advantages of a Private Limited Company. If any legal liability arises, then neither it’s member nor it’s director’s personally affected; the Liability of the members is only for the unpaid amount on shares held by them and not more than that. Shareholders are not liable for the Company’s debts and liabilities.
- Separate Legal Entity
One of the most interesting advantagesof a Private Limited Company is that it is distinct from that of its members. A company is a separate entity having its rights & Obligations.
- Perpetual Succession
A company with ‘perpetual succession’, has continued or uninterrupted existence until it is legally shut down. The Company, being a separate legal entity, is not affected by the death of any member but continues to be in existence.
- Easy Transferability
Shares of a Private Limited Companyare easily transferable by a member to any other person. No complicated formalities are there.
- Owning Property
A company is a separate legal person, can purchase, own, enjoy and alienate or sale, property in its name. No member or shareholder can make any claim upon the property of the company so long as the company is a going concern.
- Minimum Compliance
A Private Limited Company is required to do lesser legal formalities as compared to a Public Limited Company. It gets special exemptions and privileges under the Companies Act, 2013. Therefore, in Private Limited Company, less number of compliance is required.
- Minimum two directors and maximum15 (One resident Indian director is mandatory)
- The name of your business must be unique
- Minimum two shareholders and maximum of 200
- No minimum share capital is required
- The registered office of a company does not have to be a commercial space. Even a rented home can be the registered office, so long as an NOC is obtained from the landlord.
- DIN (Director Identification Number) for all the Directors.
- DSC (Digital Signature Certificate) for one of the Directors.
In India, Private Limited company registration is done with proper identity proof and address proof. Identity and address proof will be needed for all the directors and the shareholders of the company to be incorporated. Listed below are the documents that are accepted by MCA for the online company registration process:
- Identity and Address Proof of Directors and Shareholders
- Scanned copy of PAN Card (Passport in case of Foreign Nationals & NRIs)
- Scanned copy of Voter’s ID/Passport/Driver’s License (Any one)
- Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill of the individual (Any one, not older than two months)
Please note that for the foreign nationals, apostilled or notarized copy of the passport has to be submitted mandatorily. All documents submitted should be valid and genuine.
- Registered Office Proof
For online company registration in India, the company must have a registered office in India. Following documents needs to be mandatorily provided while giving Registered Office details:
- Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill in case you own property
- Scanned copy of Notarized rental agreement
- Scanned copy of No-objection certificate from the property owner
Important to Note: Your registered office can be a commercial space or can be your residence too.
Following is the step by step process of Private Limited Company incorporation:
Step 1: Apply for Digital Signature Certificate (DSC)
Since the process is completely online, hence all those authorised signatories/directors who needs to sign the online incorporation documents must apply for Digital Signature Certificate.
Step 2: Apply for Director Identification Number (DIN)
DIN can be applied along with the company registration application form i.e. SPICE -32. However, maximum 3 Directors can obtain DIN along with SPICE 32.
In case the subscriber is already holding a valid DIN, and the particular provided have been updated as on date of application and the declaration to this effect is given in the application, the proof of identity and residence need not be attached.
Step 3: Application for Name Availability (Form RUN)
For the name approval step, an application is filed in the prescribed Form RUN (Reserve Unique Name) with the Ministry of Corporate Affairs. Please note that a minimum of 2 names at the time of incorporation are proposed.
Step 4: Filling and submitting final incorporation documents
After name approval, one needs KYC, and other prescribed documents of Directors & Shareholders. After submission of SPICe form along with MOA, AOA and AGILE to MCA one will get Certificate of Incorporation along with PAN & TAN from the Department.
Step 5: Receiving Certificate of Incorporation and opening Bank Account
After approval of incorporation documents, you will receive your Certificate of Incorporation including your Company Identification Number (CIN). Post this you can open a bank account on the name of your company and can launch your business.
How can we help in getting registration?
Our services include the following:
01 What is a Private Limited Company?
Private Limited Companies are those companies where minimum two members are required and the maximum limit for number members is two hundred. The minimum two directors are required. A Private Limited Company with the limited liability of members has different characteristics as compare to a partnership firm. A Private Limited Company has all the advantages of partnership namely flexibility, large capital contribution and combination of different and diversified abilities, etc., and at the same time it has features of limited liability, greater stability and legal entity.
In this sense, A Private Limited Company is identified by the company name, Corporate Identification Number, number of members, shares, formation, management, directors and meetings, etc.
02 Why Private Limited Company is called a separate legal entity?
A company is a legal entity and like a different person established under the Act. It is treated as a different person which can own a property and have debts or creditors. The members (Directors/Shareholders) of a company have no liability to creditors of a company in a case company is unable to pay the debts.
03 Do I need to be physically present during the incorporation process of company?
No, company registration is a fully online process. Since, now-a-days all documents are filed electronically, you would not need to be physically present at all. You just need to send us the scanned copies of all the required documents & forms.
04 Is name being necessary required to be unique?
Yes, the name of the company must be unique and not identical. It must also not be similar to the registered trademark. Also, the name of the company must be as such that it signifies the activity of the business. The name of the company shall also signify the main objective of your company.
05 What are the rules for selecting a name for a private limited company?
The Registrar of Companies (RoC) across India expect applicant to follow a few naming guidelines. Hence, do ensure that your name is available and must not be similar to the already registered trademark signifying similar kind of activity.
06 What is a DSC?
The DSC is an instrument issued by certifying authorities by which you can sign electronic documents. As all documents needed are electronic, partners need a DSC. We help in providing DSC to the designated authorised signatories.
07 What is Authorized Capital and Paid-up Capital?
Authorised capital shows the maximum amount of capital that a company can raise by way of issue of shares at present or in the future. Whereas, the Paid-up Capital refers to the actual amount raised by a company i.e.; amount paid by the shareholders on the issuance of shares. One can register a company in India by any amount of paid-up capital which can be less or equal to the authorized capital but not exceeding the authorized capital.
08 Does a private limited company have continuous existence?
Yes, so long as the annual compliances are met, the private limited company will continue to exist. If you do not comply with the requirements, it will go dormant, until it is struck off the register altogether.
Can one register a Private limited company at their home address?
Yes, one can register the company at their residential address. One requires to submit the utility bill copy of the same.
If there are no partners available, then can one register their family members in the company?
Yes, it is a good to register a family member as a partner. At a later stage one can change this or transfer shares of the directors.
09 Is it necessary to have a company’s books audited?
Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs or rupees and even lead to the blacklisting of directors.
10 What are articles of association and memorandum of association?
These documents contain the rules, vision and mission of your organisation, and define, among other things, the exact business and the roles and responsibilities of shareholders and directors.
11 Are two directors necessary for a Private Limited Company Registration?
Yes, a minimum of two directors are needed for a private limited company. The maximum members can be 200. You can register as a One Person Company, if you are the sole owner of the company.
Who can be the director or subscriber in a Private Limited Company?
Any individual/organization can become a member of a private limited company including NRI/foreigners. Nonetheless, the individual must be 18+ above in terms of age and should hold a valid PAN card.
What is the minimum capital needed to form a Private Limited Company?
There is no minimum capital required for starting a private limited company.
Can the director of a private limited company also be a salaried person?
Yes, a salaried person can become the director in private limited, LLP or OPC private limited company. One needs to check the employment agreement if that allows for such provisions. In a lot of cases, the employers are quite comfortable with the fact that their employee is a director in another company.
What are the statutory requirements to be fulfilled once Private Company is registered?
Once, the company is registered, it should follow below-mentioned requirements on priority:
- The opening of the company’s current account within 30 days after receiving the PAN card.
- Appointment of a Statutory Auditor
- Depositing paid-up capital as mentioned while registration
- Issue and allotment of shares
What are the Annual Compliance requirements to be fulfilled by a Private Company?
During every financial year, the company must hold one Annual General Meeting (AGM) and at least 4 board meetings (one in each quarter). Further, the accounts and financial statements must be audited by an independent auditor. Subsequently, it shall file form AOC – 4 and MGT – 7 as part of Annual Compliance within given time.
What is the time duration for registering a Private Limited company by Registrationseva?
Registrationseva assures to form a Private Limited Company within 7 working days. The time taken also depends on the relevant documents provided by the applicant and the speed of approvals from the government. To ensure a speedy registration, kindly pick a unique name as the proposed Company name and also ensure that you have all the required documents prior to the starting of the registration process.
Why get my company registration through Registrationseva?
- We have an in-house expert team of lawyers/ Chartered accountant/ Company secretaries and experienced professional from all over India.
- Our price is the most reasonable in India
- We focus on building the long-term relationship rather than one-time service
- Our maximum clients are satisfied from our services.