Private Limited Company registration

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Private Limited Company

What is a Company?

The company means working in a group. In which two or more people can work together. If peoples also want to do business then they should have complete information about the private limited company.

What is the best option to start a business in India?

The company is a popular option for startups and businesses with high growth aspirations to start a business in India. The private limited company is incorporated under the Companies Act of 2013 and is governed by the Ministry of Corporate Affairs (MCA). It is a registered corporate structure, which gives the business a separate legal identity from its owners. Therefore, the ability to contract in their own name and protect the personal property of owners from commercial liabilities provides significant benefits.

What is a Private Limited Company?


A private limited company is a privately held small business unit. The liability of members of a PLC is limited to the no. of shares held by that member. A PLC is administered through the Companies Act, 2013. The minimum number of shareholders required to start a PLC is two, while the upper limit of the members is 200.

If a PLC faces financial risk, they are not liable to sell their personal assets to their shareholders i.e. they have limited liability. A PLC should have at least two directors and a maximum of 15 directors and a director should be over 18 years. A foreign national PLC can become a director of India.

It is mandatory to associate Private Limited with the name of a PLC in India. The minimum paid-up capital amount for a PLC is Rs. 1 Lac. A PLC also exists in case of death or bankruptcy of its members.

LLPs vs. Private limited company


Both private limited companies and LLPs are limited liability structures. However, companies offer some major benefits, especially to startups. Company ownership is defined by share capital, which is easier to transfer to LLP than an ownership transfer. Furthermore, it clearly distinguishes management and ownership. Therefore, it is preferred by VCs, angel investors, and banks to provide loans or equity funding.

However, one must also consider the high compliance and mandatory audit requirement, making it an expensive structure to maintain.

Private Limited Company Registration Benefits

Easy Fundraising

Pvt. Limited company registration process is rigorous enough to make this structure reliable among others which makes it easy to raise or borrow money from external sources. The organization itself offers several ways to raise funds in the form of private equity, ESOPs, and more.

Separate Legal entity

Once a Pvt. Ltd. company registration is done in India, a legal entity is born in the eyes of the law. It distinguishes itself from its owners and managers. The company can operate its assets and contract with the parties simply by opening a bank account in its own name. It also provides the right to sue third parties in case of any default.

Owners Limited Liability

The liability or debt of the company does not impose any charge on the personal property of the owner. Their liability is limited only to the capital and unpaid fixed by them.

Management and Ownership seperation

Separate ownership and management both help the company and management to focus on their potential tasks. The shareholders give the company responsibility to operate and run without losing control in the form of voting.

Required Fields for Company Registration in India

As per law in the Companies Act, 2013 for any company registered in India, the following conditions have to be met.

Two Directors

A private limited company should have at least two directors and at the most, the business can have 15 directors, at least one must be a resident of India.

Unique Name

The business names must be unique when obtaining company registration. And the suggested name should not match any existing company or trademark in India.

Minimum Capital Contribution

There is no minimum capital amount for a company to obtain company registration. A company should have an authorized capital of at least 1 lakh rupees.

Registered Office

It is not necessary to have commercial space in the registered office of a company. Even a house for rent can be a registered office, so unless a NOC is obtained from the landlord.

Documents Required for a PLC Registration

PAN Card

PAN Card

PAN card of shareholders and directors. A valid passport must be provided by foreign nationals

Proof of Identity

Proof of Identity

Passport /Aadhaar Card and Voter ID /Shareholders and Directors' Driving License.

Address Proof

Address Proof

Details of the latest telephone bill/electricity bill/bank account shareholders and directors.

Photograph

Photograph

Latest passport size photograph of shareholders and directors.

Business Address Proof

Business Address Proof

Latest Electricity Bill/Registered Office Address Telephone Bill

NOC from Owner

NOC from Owner

The details of different GST received on
sale of goods etc.

Rent Agreement

Rent Agreement

Rental agreement of registered office, if any, should be provided

Pay Attention

Pay Attention

In the case of an NRI or foreign national, the Director's documents must be notarized or inspired

Steps Required for Private Limited Company Registration

1

Digital Signature Certificate and DIN:

First, partners must apply for digital signature and DIN. A digital signature is an electronic signature used for filing and the DIN is assigned to the director's PIN number issued by the MCA. If the directors already have DSC or DIN, this step can be skipped.

Option 1:
File Form DIN 3. This form requires PAN, Aadhaar card, etc. with proof of address and proof of original details of the proposed director. This option is only available for existing companies. It is effective from January 2018; the applicant is not required to file a separate DIR-3. The DIN can now be implemented within the SPICe form for the three directors.

Option 2:
With the SPICe filing, the DIN is issued to the proposed directors who do not have the DIN. Under this filing process through SPICe (INC 32), a maximum of three directors can apply for DIN. If the applicant wants to include a company with more than 3 directors and no more than 3 persons have a DIN. In such a case, the applicant will have to join the company with 3 directors and subsequently appoint new directors after incorporation.

2

Name Approval

You have to provide the company name with 3 different options, one of which is selected for MCA. The given names should be unique and representative of the organization.

Option 1:
Inclusion of a company through the RUN (Reserve Unique Name) form: In an effort to simplify processes for new as well as existing companies, the Ministry of Corporate Affairs (MCA) has introduced the RUN web service to include a company is included for RUN only gives one opportunity to enforce any other opportunity due to any similarity of name with a registered company, LLP or trademark, or in case of rejection, non-adherence to the company (incorporation rules) 2014 available This does not mean that you should be sure of the name proposed to avoid rejection and follow the name availability guidelines, existing trademarks. The applicant will have to re-file another RUN form with the prescribed fee.
Please note that DSC and DIN will not be required to fill the form (RUN) for name reservations. Only an MCA account is mandatory.
However, from March 23, 2018, the ministry has decided to allow two proposed names and one re-submission (RSUB), which are unique names for companies.

Option 2:You can apply for the proposed name via SPICe (INC-32), but only one name can be applied to this form, which is similar to the provision of RUN.
Further, in case of rejection due to non-approval of name, the applicant will get a second chance to fill the same SPICe form again without any other charges. This means that you will get two chances to fill the same form without paying any additional charges of Rs. 1000 / - for both the times.
If the name is not accepted for the second time, you can file the SPICe form again from scratch. This will prove to be cheaper than opting for the first option any day. The entire process, including name approval and incorporation, takes about 2-3 days.

3

Submission of MOA and AOA

Once the title is accepted, a report and related papers should be prepared. MCA will be registered with MOA and AOA with membership claims.

4

MCA E-Form Filing

We are required to obtain agile and Inc-22 Form COI (Certificate of Incorporation) after submitting the approved forms.

5

Get Company Incorporation Certificate

Generally, a private limited company is formed and the certificate of company incorporation is taken 15–25 days. The certification of incorporation is proof that the company was formed. Your CIN also applies.

6

Apply for PAN & TAN and bank account

After getting the company registration certificate you will need to apply for PAN and TAN to the company. You can submit a Certificate of Incorporation, AOA, MOA, and PAN with the bank to open your bank account.

Private Limited Company Registration Process

Free Consultation

First of all, you will need to consult with the legal salaah team. There is no charge for consultation related to your company registration inquiry.

Purchase a Package

The second step is you will need to select a package from the packages available on the private limited company registration packages as per your requirement.

Provide Basic Details

The third step for company registration is you will need to provide your legal details and the required documents to our team via mail.

Provide Digital Signature and DIN

Then you will need to provide the digital signature and DIN to register your company

Verification on Email

After providing the documents you will receive a verification email for the documents verification. It’s the second final stage of company registration.

Get your Certificate

After the successful verification of documents, you will get your company incorporation certificate.

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PACKAGES

Basic

₹9,899/-

/
  • 3 class 2 digital signature
  • 2 Director Identification Number
  • 1 RUN Name Approval
  • Authorized capital up to 10 lakhs
  • Incorporation fee
  • Stamp duty
  • Pan and Tan
  • GST registration

Premium

₹25,899/-

/
  • 3 class 2 digital signature
  • 2 Director Identification Number
  • 1 RUN Name Approval
  • Authorized capital up to 10 lakhs
  • Incorporation fee
  • Stamp duty
  • Pan and Tan
  • GST registration
  • 12 month GST return filing (GSTR-3B or GSTR-1)
  • Udyog Aahaar Registration

Frequently Asked Questions

Private Limited companies are companies/organizations that are privately held for small businesses (the general public cannot buy shares). These companies/organizations are known as limited liability companies (LLCs) in the format of the United States. Limited liability means that the risk to the personal assets of a shareholder/director is limited to the value of the company's shares.
For registration of a company, it requires a minimum of two members/shareholders. So these individuals are eligible to start a company in India if they have a PAN card Aadhaar Card an office (rented / self-owned).
The Ministry of Corporate Affairs (MCA) has introduced new SPICe INC- 32 forms for fast company incorporation. To register a private limited company, e-MOA (INC-33) and e-AoA (INC-34) also have to be filed.
The basic procedure for registration of a company in India is as follows:
  • Creating a Digital Signature Certificate (DSC)
  • Self Attested Document for Private Limited Company incorporation which includes Association of Associations (AoA), Memorandum of Association (MoA),
  • Proposed Office File of utility bills (electricity bills, etc.) with Form INC-32 for one-day company incorporation with SPICe. For Director Identification Number (DIN), name reservation, incorporation, PAN application, TAN number.
Here, is the list of the documents that are required for registration of a company-
  • Memorandum Association (MoA)
  • Articles of Association (AoA)
  • Declaration and Affidavit by Director and First Clients
  • Proof of office address
  • No more than 2 months old per utility bills (electricity, gas, water bills, etc.)
  • Copy of approval if the proposed name contains words/expressions that need to be authorized by the Central Government
  • In case of a proposed name based on a registered trademark, then it is mandatory to attach a trademark registration certificate or copy of the trademark application.
  • Sole proprietor partners/associates / NOC from the existing company
  • Proof of customer identity and residential address.
  • Proof of directors' identity and residential address.
The required processes and time breakup are as follows: -
  • 1 day - Document preparation
  • 1 day - Document signing
  • 1-2 days - DSC processing (INC-32 required to file digital signature certificate)
  • 1 day - Incorporation with SPICE Processing.
  • Therefore it will take 4-5 working days to include a private limited company.
A private limited company usually for incorporation Costs of Rs.15, 000 initially, Rs. 15,000 for ROC compliance of PLC Rs. 15,000 for audit procedures. So, a capital of about Rs. 45,000- 50,000 are required to start and maintain a private limited company.
Yes, representatives of these companies can be appointed as a director in an Indian company, one of them must be a resident of India.
No, according to Indian laws a company must have a valid article at the time of registration or incorporation of the company.
No, the process of registration of a company is a 100% online process; all they have to do is send a scanned copy of the required documents.
ROCs (Registrars of Companies) across India expect applicants to follow certain guidelines for naming. Some of them are subjective, meaning approval can depend on the opinion of the officer handling your application. However, the more closely you follow the rules, the better your chances of approval. However, make sure your name is available.
DSC is a tool issued to certify officials (TCS and N-code are two of them) by which you can sign electronic documents. As all documents required are electronic, partners require a DSC.
Yes, a private limited company will continue to exist until annual compliance is reached. If you do not comply with the requirements, it will be deactivated, until it is completely hit from the register.
A minimum of 2 directors are required to include private limited companies and the upper limit of the number of shareholders is 200.
Yes, a private limited company has to appoint an auditor, irrespective of its revenue. An auditor must be appointed within 30 days of registration of the company. Compliance is important with a private limited company, noting that penalties for non-compliance can run into millions of rupees and even lead to blacklisting directors.
Any person/organization can become a member of a private limited company including NRIs / Foreigners. However, one should be 18+ above in terms of the age of the person and should have a valid PAN card.
Yes, a salaried person can become a director in a private limited, LLP, or OPC private limited company. The employment agreement needs to be examined if it allows for such provisions. In many cases, employers are quite comfortable with the fact that their employee is a director in another company.
If you have all the documents in order, it will not take more than 15 days. However, this depends on the workload of the registrar.
No, the public is prohibited from membership for any securities of the company and the company may trade its shares to the public.
A minimum of 2 directors and a maximum of 15 Directors can have in a company.
Yes. They attract venture capitalists and FDI in India.
Yes, foreign nationals or NRIs can become directors or shareholders in a private limited company in India. But the holding of shares in the company by foreign nationals/companies will be as per FDI guidelines of India. And at least one member of the board of directors of the company must be a resident of India.
The Director Identification Number (DIN) is the unique identification number required for a person to become a director of a company. DIN is issued by the ROC office (Ministry of Corporate Affairs). It is similar to the PAN card number. DIN must be mentioned in documents when appointing as a person.
ROC is a government office with which companies are registered. Every state except Maharashtra and Tamil Nadu has one ROC office with two ROC offices. In Maharashtra, companies in Pune and Mumbai are registered with ROC. In Tamil Nadu, companies are incorporated in Chennai and Coimbatore ROC. In all other states like Delhi, there is only one ROC office, such as Hyderabad, Bangalore.

Different Types of Company Registration

What is Company Compliance After Company Registration

  • All companies having company registration in India are required to maintain compliance under various regulations. Failure to maintain compliance may result in penalties or disqualification of directors.
  • Legal salaah can help you in the accounting and maintenance of statutory compliance for the company at a very affordable price point.
  • Some important compliance for company registration in India is given on the right. Please note that additional forms will also apply as per the government notification.

Steps to be Followed for Compliance After Company Registration

Appointment of the Statutory Auditor

Within 30 days of company incorporation
The board of directors should appoint a practicing chartered accountant within 30 days of incorporation/ registration of a company.

Business Commitment

180 days of company incorporation
The capital mentioned in the MOA [Memorandum of Association] has to be deposited in a bank and a certificate of commencement from MCA.

Income Tax Filing

The Date for income tax filing is 30th September
Companies having Company registration in India should file income tax returns every year in Form ITR-6. The last date for filing income tax return filing is 30th September of every year (subject to government notification)

Annual Return

Companies registered in India should file MCA annual returns in the form of AOC-4 within 30 days from the end of the financial year, and MGT-7 within 60 days of the annual general meeting. (Subject to government notification)

DIN KYC

Every person who is allotted a DIN on 31 March of the financial year must immediately submit their KYC on or before 30 September of the next financial year.

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