What is a Private Limited Company?
A
private limited company is a popular choice for starting a business in India
due to its benefits, including limited liability for shareholders and clear
ownership limits. It's a privately owned and operated entity typically by small
to medium-sized enterprises. With this structure, business liability is
confined to shareholders' investments, and the number of shareholders is capped
at 200.
Interestingly, the same individuals can serve
as directors and shareholders, or they can be different entities. This type of
company registration grants the business its own legal identity, separate from
its owners, directors, and shareholders. Consequently, it allows for essential
functions like entering contracts in the company's name and shields the
personal assets of owners from business obligations.
Private Limited Company Registration?
Registering
your company online brings loads of perks. It boosts your business's
credibility and offers various advantages:
1. Your
company gets listed in MCA records, adding to its legitimacy.
2. You're
shielded from personal liability and safeguarded against other risks.
3. Enjoy
lower tax rates compared to being a sole proprietor.
4.
Directors and shareholders can be different folks, giving you flexibility.
5. It's
like a magnet for customers, enhancing your business's appeal.
6.
Bagging bank loans and attracting reliable investors becomes a breeze.
7. Your
company's assets are safeguarded with liability insurance.
8. With
diverse capital contributions, your company gains stability.
9. You're
set up for growth and expansion, with an enhanced ability to become big.
Eligibility for Online Company Registration
Before we jump into
registering a private limited company, we need to make sure we meet all the
rules laid out in the Companies Act of 2013. This means checking off all the
boxes to make sure we're eligible to start the registration process.
·
PECULIAR/REMARKABLE NAME :-
Your company's name
should stand out and be different from any other registered Indian companies or
trademarks
·
TWO DIRECTORS REQUIRED
:- Every private limited company needs at least two directors, but can have
up to fifteen. Additionally, at least one director must reside in India.
Don't have two directors? No problem! You can opt for a one person
company registration instead.
·
ESTABLISHED OFFICE :- The company you're planning to set up needs an address within the state
where you're applying for private limited company registration. The
registered office doesn't necessarily have to be in a commercial space. Even a
rented house could work, as long as the landlord gives permission with a letter
of authorization.
·
MINIMUM CAPITAL INPUT :- A business doesn't need a
specific minimum amount of capital. You can even start a company with just Rs.
1 as paid-up capital. However, for registration purposes, the company must be
listed with a minimum authorized capital of Rs. 1 Lakh.
Perks of Registering A Private Limited Company
There are numerous
incentives for formalizing your business as a private limited company:
·
Banks, venture capitalists, and investors favor this structure.
·
Shares can be readily allocated and transferred to other directors
or individuals who have invested in the company.
·
It blends the adaptability of a partnership with the advantages of
a public limited company.
·
This type of company boasts the lowest risk of dissolution.
Documents Required for Setting Up a
Private Limited Company
For company registrations, you just need a few documents that are easy to
gather. Here's what you'll need for the company's director:
Director's Documents
- Photo
- PAN Card
- Aadhar
Card
- Address
Verification*
- Identity
Confirmation**
Evidence of Company's Registered
Office Location
1.
Most recent electricity or other utility bill under the owner's
name
2.
Rental agreement between owner and company founder OR
3.
No Objection Certificate (NOC) from Owner (if the owner is also
the company's founder)
*For
Address Verification: Choose any of the following - Bank Statement, Electricity
Bill, Telephone Bill, Mobile Bill. (Any document not older than 2 months).
**For
Identity Confirmation: Provide any of the following - Driving License, Voter ID
card, Passport. (Any one of these).
A Guide to the
Online Company Registration Process :-
The entire
procedure typically lasts for 7 working days, covering approval for the DIN,
company name, and company incorporation. However, setting up a company has
become swift, as all paperwork can now be conveniently uploaded onto a unified
online platform. Our specialists will guide you through each stage of the
online company registration journey.
Day 1:
- Reviewing
submitted papers and information
- Initiating
request for Digital Signature Certificate (DSC)
Days 2 - 3:
- Checking
availability of company name
- Drafting
business objectives
- Preparing draft
documents like MoA, AoA, DIR, etc.
- Seeking your
approval on drafts
Days 4 - 5:
- Filing SPICe
form for company name reservation
- Filing company
registration forms
- Applying for
Director DIN
- Applying for
PAN & TAN for the company
Days 6 - 10:
- Awaiting
application processing by Government (MCA)
- Delivering
Certificate of Incorporation and other necessary documents
- Assisting in
opening a current bank account
GST Enrollment Following Company Registration
Individuals,
companies, and firms can access input tax credit and other advantages of GST by
completing the GST registration process via the GST Registration application.
You can initiate
the GST registration simultaneously with company incorporation on the MCA
portal.
To proceed,
simply provide consent for the GST registration application within e-form AGILE
(INC-35) on the MCA portal.
Perks of Private Limited Company
1.
Enhances brand recognition and credibility, leading to increased customer trust
and loyalty.
2. Opens
doors to tax benefits, including deductions and exemptions tailored for private
limited companies.
3.
Enables the company to act independently, entering contracts and legal
proceedings under its own name.
4.
Facilitates access to diverse funding sources such as bank loans, venture
capital, and angel investors.
5.
Provides a simple exit strategy for shareholders, with easy transferability of
shares. Shareholders' liability is limited to their investment amount,
safeguarding their personal assets in case of financial losses.
How We Assist with Private Limited Company Registration?
We boast a
top-notch team of experts capable of swiftly and flawlessly handling Online
Company Registration Services in India.
Since 2014, our
professionals have been efficiently managing online company registrations on a
daily basis, staying abreast of any new changes in the registration procedures
set by the MCA. This ensures that you receive the utmost functionality and
service excellence from us.
Upon completion
of the Private Limited Company Registration services, we provide you with all
the necessary documents, including:
- Directors'
DIN and DSC on a Pendrive
- Memorandum
of Association (MoA) & Articles of Association (AoA)
- Challan for
Registration fees and stamp duty paid at Government Office
- Certificate
of Incorporation
- Company's
PAN and TAN
But wait, there's
more! We also assist you in opening a current bank account, sparing you the
hassle of dealing with bank representatives constantly asking for repetitive
documents.
With us by your
side, you'll soon be ready to launch your dream business hassle-free!
Points to Keep in Mind When Choosing a Company Name
Choosing the
right name for your company is crucial as it forms the first impression on your
customers, suppliers, and stakeholders. Ensure that you follow the criteria for
availability of names during Private Limited Company registration.
Here are some tips for getting your
Company Name Approved:
1. Keep it Short and
Simple
2. Make it
Meaningful
3. Ensure it's
Unique
4. Use the
Appropriate Suffix: For a Private
Limited Company, ensure that the name ends with "Private Ltd" or
"Pvt Ltd". Similarly, for a Limited Liability Partnership (LLP), it
should end with "LLP".
5. Avoid Illegal or
Offensive Terms
When
proceeding with Private Limited Company registration, it's essential to be
well-informed about all the details. Our experts can guide you through the
entire process to ensure a smooth registration experience.