How to Register a PVT LTD Company in India: Checklist 2024
It can be extremely profitable to start a private company in India. But it also involves several steps and paperwork. Don't worry though! This guide will walk you through the process of registering your Pvt Ltd Company in India ") a for 2024. We'll cover everything you need to know, from the basics to the details.
Understanding Private Limited Companies in India
First, let's talk about what a private limited company is. It's a type of business where the owners' liability is limited to their shares. This means if the company faces financial troubles, the owners' personal assets are usually safe. Private limited companies are great for businesses that want to grow but also want to keep some control over who owns shares.
In India, private limited companies are popular because they offer benefits like:
Limited liability for owners
Easier to raise money
More credibility with customers and partners
Tax benefits in some cases
Now, let's dive into the steps to register your PVT LTD company in India.
Step 1: Secure a (DSC) Digital Signature Certificate
To start the company registration process, you need a Digital Signature Certificate. This is like an online signature that proves you're really you when
you sign documents electronically. Here's what you need to do:
Choose a certified agency to get your DSC
Fill out their application form
Provide proof of identity and address
Pay the fee
Receive your DSC (usually within 3-5 days)
Remember, all directors of your company will need a DSC.
Step 2: Get a Director Identification Number (DIN)
Next, each director needs a Director Identification Number. This is a unique ID given by the government to company directors. Here's how to get it:
Go to the Ministry of Corporate Affairs website
Fill out the DIN application form
Scan and upload copies of your Identity proof and address proof documents
Submit the form with your digital signature
Pay the fee
You'll usually get your DIN within 1-2 days.
Step 3: Choose and Reserve Your Company Name
Now comes the fun part – picking your company name! But be careful, there are rules:
The name should end with "Private Limited"
It shouldn't be too similar to existing company names
It shouldn't use certain restricted words
To reserve your name:
Go to the MCA website
Fill out the name reservation form (RUN)
Suggest up to two names
Pay the fee
The MCA will check your names and approve one if it's available. This usually takes 1-2 days.
Step 4: Prepare and File Company Documents
This is a big step. You need to prepare these documents:
Memorandum of Association (MOA): This says what your company will do
Articles of Association (AOA): This says how your company will be run
You also need to fill out a form called SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus). This form asks for details about your company, directors, and shareholders.
Here's what to do:
Draft your MOA and AOA (or use standard templates)
Fill out the SPICe+ form online
Upload all required documents
Pay the registration fee
Step 5: Get Your Certificate of Incorporation
If everything is in order, the Registrar of Companies will review your application. If they approve it, you'll get a Certificate of Incorporation. This certificate is proof that your company is now officially registered!
Along with this, you'll also get:
A Company Identification Number (CIN),
A Permanent Account Number (PAN), and
A (TAN) Tax Deduction Number
Congratulations! Your private limited company is now registered in India.
Post-Registration Steps
After registration, there are a few more things you need to do:
Open a bank account for your company
Apply for GST registration (if needed)
Get any necessary business licenses
Start keeping proper books of accounts
Key Points to Remember
Company Registration in Delhi or any other city follows the same process
Company registration fee: ₹5,000 - ₹20,000 (depends on your capital)
Professional fees (if you hire help): ₹5,000 - ₹25,000
Remember, these are just estimates and can change.
Time Required
The whole process of company registration in Delhi usually takes about 15-20 days. But it can be faster or slower depending on how quickly you prepare documents and how busy the government offices are.
Final Thoughts
Registering a private limited company in India might seem like a lot of work, but it's a straightforward process if you follow the steps. Whether you're doing company registration in Delhi or any other city, the process is the same. And remember, LLP company registration is different, so make sure you're following the right process for your needs.
If you're feeling overwhelmed, don't worry. PSR Compliance specialize in company registration and can help you through the process. The key is to be thorough, provide accurate information, and follow all the rules.
With your private limited company registered, you'll be ready to start your business journey in India. Good luck with your new venture!
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