Private Limited Company

Company Registration is foremost step to start your business in most organised way. However business can be run in proprietorship, partnership or LLP but running business under private limited company gives add on advantages as compare to other business model.

Private Limited Company:

A Private Limited company is a closely (privately) held business entity which is registered under companies act. The ultimate ownership of such companies remains in the hand of few people who actually owned company. In Private Limited Company, there can be maximum 50 share holder and liability of such share holders is limited upto the unpaid amount of shares. Under private limited company maximum 15 directors can be appointed.

Key Benefits of Private Limited Company:

  • Separate Legal Entity
  • Limited Liability
  • Increased Investment Opportunities
  • Ownership can be transfer easily
  • Lower tax rate
  • Increased goodwill and Brand Value
  • Transparent Information
  • Increased Sales and More Customers

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    Steps Involve in Registration of Private Limited Company:

    Name Approval:
    A private Limited Company has their own identity and distinct from their members/shareholders. The name of Proposed Company must be unique and distinguished from existing companies.
    A name approval application (an online form “RUN”) can be filed without initiating company registration process. A Government fee of INR 1000 is required to be paid for name approval and 2 names options can be given and out of these 2 names one name will be approved. If both the name are similar with existing registered companies then MCA (Ministry of Corporate Affairs) can reject both the name however we will be given second chance to take approval again with 2 new names
    without paying additional fees. Such approval remains valid for 20 days from the date of approval.
    Documents Required:
    A Company can be registered with minimum 2 Directors and 2 Shareholders. Directors and Share holder can be the same person hence there must be at least 2 persons to incorporate company. Directors are the person who has all the decision making powers. Shareholders are the owner of company and all profit/loss belongs to such shareholders.
    Following documents would be required for every Director/Shareholder of company:

    • Photo
    • PAN Card
    • Any Address Proof (Aadhaar/DL/Passport/Voter ID)
    • Bank Statement with recent entries (Account no and IFSC must be there on document)

    Following details will also be required for Director and Shareholder (Documents will not be required)

    • Email ID and Mob no.
    • Education Qualification details
    • Occupation type- Professional/businessmen
    • No. of years of living at a place for which address proof submitted

    Following documents would be required of Proposed Company:

    • Rent Agreement for address proof (it can be in favour of proposed company) or NOC from Landlord for doing business in such place or Ownership Proof
    • Electricity bill/Water bill/Fixed Landline Bill not more than two month old

    Registration Process Initiation:
    Once the documents are available, registration formalities can be started. We will file various forms including Spice 32, MOA, AOA and Agile. All the provided documents will be attached to these forms and such forms will be sign by digital signature of directors. These forms will be approve by MCA within 2-3 days of filing. At the time of filing forms, requisite amount of stamp duty and other government fee is need to be paid. If MCA is not satisfied with filed forms and attached documents then they can provide another chance to rectify the error. If government is satisfied then approval can be given. On the date of approval, an email will be received which will include Certificate of incorporation, PAN Card, and TAN .
    Fees:
    For incorporation of Company, there are 2 kind of fees are involve. One is government fee, which varies according to State in which company is going to be registered and how much capital is being introduced.
    Second is our professional charges which can be discuss through discussion with our relationship expert.

    FAQ on Company Registration:

    How much time it takes to register a private limited company?

    Generally it takes 7 days to get a approval.

    What is Digital Signature Certificate (DSC)?

    Its an Signature who is being used to sign Documents Electronically. It is an replacement of traditional sign which can be executed on paper only however such DSC can be executed through electronic mode without physically sign on paper

    What is Director Identification Number (DIN)?

    It’s an identification no issued to every director. A person can apply this by filling form DIR 3 or it can be obtained by filing Spice 32 forms for company incorporation.

    What is Spice (32) form?

    It is application form in which all the information to be filled.

    Can a NRI become Director of Company?

    Yes an NRI can become Director, However there must be one Indian director to register a company in India.

    What is minimum capital/fund is required to register a company?

    There is no minimum paid up capital requirement for register a company. However minimum authorised capital must be INR 1,00,000. Authorised capital is the maximum capital which can be invest in business.

    Whether Audit is compulsory?

    Yes Annual Statutory Audit is compulsory. This Audit is to be carried out by Practising Chartered Accountant.

    Can a company take loan from their Directors?

    Yes, Company can take loans from their director and relatives of Director

    Can a company be register without a proper office?

    Yes, Company can be incorporated at residential address also. It will be the registered office of the company and it can be change anywhere in India.

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