The most in-demand business structure in India is the private limited company. It is registered under the Companies Act, 2013. Such companies are governed by the Ministry of Corporate Affairs. The major reason, why this business structure is in demand is because it offers many advantages, including limited liability, which protects the personal assets of the director or members in case of any default.
It is very important to get your private limited company registration done by a professional who has experience in this field. So, that your registration compliances with all the necessary requirements. PSR Compliance can be your ideal partner in the process of company registration in India.
A private limited company is a private entity held by small entities. In order to register a private company, a minimum 2 members are required, but there is a limited on maximum number of members, that is 200. The best part is that the liability of directors and members is limited only to the extent of their unpaid amount of the shares.
The requirements of a private limited company are mentioned below:
There are three types of private limited companies on the basis of share capital:
In such companies, the liability of shareholders or members is limited to a particular extent.
In such companies, the liability of the members is limited by a guarantee. Such a guaranteed amount is claimed from the person who gives the guarantee to indemnify the losses of the company to the extent as decided, during the company winding-up process.
Here the liability of all the members will be unlimited to the extent of their personal property as well. In case of default or winding up, the member will be held personally liable to repay the debts of the company.
A private limited company has a lot of benefits and a few of them are listed below, that will help you understand why this company structure will be the best for your business needs:
A private limited company's shareholders are subject to a limited responsibility towards the company and its creditors. This implies that, as a shareholder, your obligation to the company will be limited to a particular amount. Since the shareholders are not personally liable, they are not required to use their own assets to repay the company's liabilities.
The entrepreneurs are also interested in incorporating a private limited company this business structure allows them to raise capital and collaborate with investors to fulfill their business needs.
Every private limited company is a separate legal entity. This implies that the business can itself manage its debts and creditors as well as its assets and liabilities. The company's losses will not be attributed to the shareholders. Thus, in order to collect the money, the creditors cannot take legal action against the directors or stockholders. It is the name on whose name the creditors can initiate the suit for repayment of their money.
The private limited company is formed by law and it can be dissolved only by the provisions of law. The death or incapacity of any director or member will never have any effect on the existence of a company.
It is mandatory for all the companies to submit certain important with the Registrar of Companies for company incorporation. List of a few important documents that need to be submitted are mentioned below:
The process of private limited company registration in India is mentioned below:
A Digital Signature Certificate (DSC) from the Controller of Certification Agencies (CCA) is required for each director of the proposed company. For this, the director will be required to furnish a few important information including a phone number, email address, PAN, Aadhaar card, and passport-sized photographs.
If you want to serve as a director for the organization, you must have a Director Identification Number (DIN). This is important because DIN is required for signing the documents of the company.
To obtain a distinctive business name, start by filling out the SPICe+ Part A form. Here, you will have to choose the type of business, class, category, and subcategory, and providing a thorough business description. Two names must be suggested for approval.
Submit complete details about the capital, the address of the registered office, the subscribers and directors' information, the stamp duty, the PAN and TAN application, and any required attachments. Make sure that the requirements of the Companies Act, 2013 are complied with properly. Therefore, it is advised to take help from industry experts.
Now, the next step is to draft the two most important documents, that is MOA and AOA. Once the documents are drafted, you need to submit them to the Registrar of Companies. After this process is done, you need to register for a bank account, GST, EPFO, ESIC, and a store and establishment license (which may vary by state) by submitting the AGILE-PRO-S form.
The MCA will issue the Certificate of Incorporation (COI) with the Company Identification Number (CIN), PAN, and TAN after a successful document verification process.
1. How to register for Pvt Ltd company?
To register a private limited company in India, you will have to first for DSC and DIN. Then, draft MOA and AOA. Furthermore, you?ll have to submit the important and application to the ROC.
2. What is the cost of Pvt Ltd company registration?
The cost of registering a Private Limited company depends upon certain factors and in order to know the exact cost of incorporation, you can contact with PSR Compliance.
3. What is the minimum paid-up capital required for Pvt Ltd Company registration?
After the Companies Amendment Act, 2015, no minimum paid up capital is required to register a private limited company in India.
4. Do I need to file MOA and AOA during incorporation?
Yes, every company is required to draft and submit the MOA and AOA with the ROC during the time of incorporation.
5. Can NRIs register a Private Limited Company in India?
Yes, NRIs can start a private limited company in India. Moreover, as per the regulations of Foreign Direct Investment, they can also hold the shares of any Indian company.
6. Is GST mandatory for private company incorporation?
If your company's annual sales or turnover exceeds 40 lakhs (for goods) or 20 lakhs (for services), you must register for GST.
7. How to select a name for Pvt. Ltd. Company registration?
Firstly, you must select a name that is unique and does not resemble with the name of any other company. It is recommended to use a name which resembles with the business activity of your company. Last, the name of your private limited company, must include a suffix ?Pvt. Ltd.? Or ?Private Limited?.