• D- 215, Devsha Business Park, Sector-63, G.B. Nagar, Noida, UP, 201301
  • 070658 83416

Private Limited Company Registration

Overview of Private
limited company

A private limited company is a type of business structure commonly used by small to medium-sized enterprises in many countries, including India and the UK. In a private limited company, the owners have limited liability for the company's debts and the shares of the company are not publicly traded. The ownership and management of the company is typically restricted to a small group of individuals or shareholders, and there are often restrictions on the transfer of shares. This structure offers certain advantages, such as limited liability protection for owners, separate legal identity from its owners, and potential tax benefits.

Years
experience

Overview of Online Private Limited Company Registration

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. 

What is a Private Limited Company?

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. 

Requirements of Private Limited Company

The requirements of a private limited company are mentioned below:

  • There must be a minimum of 2 directors and shareholders for the registration of a company under the Companies Act, 2013. Moreover, there can be a maximum of 200 members and 15 directors.

  • For registration of a private limited company, the directors must have a directors identification number (DIN).

  • Among all the directors of the company, at least one director must be an Indian resident who must have stayed in India for a total of 182 days in the previous calendar year.

  • The name of your private limited company must be unique and not similar to any existing company.

  • During the company registration, the applicant is required to submit the permanent address and address of the place of operation of the company, where all the business activities are the company is conducted on every day basis. 

Types of Private Limited Company

There are three types of private limited companies on the basis of share capital: 

Limited by Shares

In such companies, the liability of shareholders or members is limited to a particular extent. 

Limited by Guarantee 

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. 

Unlimited Liability 

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. 

What are the Benefits of a Private Limited 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:

1. Limited Liability

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. 

2. Raising Capital

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. 

3. Separate Legal Entity

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.

4. Perpetual Succession

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. 

Documents required for online Private Limited Company Registration

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:
 

  • Every director of the proposed company is required to submit their Aadhar card and PAN card.

  • As a part of identity proof, the directors are also required to submit other documents such as driving license, voter card, or passport.

  • Proof of address of the director ? recent bank statement, telephone bill, or electricity bill.

  • A recent passport-sized photograph of all the directors.

  • Copy of business address proof is also required, such as utility bill, and tax bill. 

  • If the business property is rented, a rent agreement or non-objection certificate from the owner is also required. 

Procedure for Private Limited Company Registration

The process of private limited company registration in India is mentioned below: 

Step 1: Get a Digital Signature Certificate (DSC)

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.

Step 2: Obtain a Director Identification Number (DIN) 

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. 

Step 3: Reserve the Company's Name (SPICe+ Part A)

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.

Step 4: Fill application for Company Incorporation (SPICe+ Part B)

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.

Step 5: Submission of MOA and AOA

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.

Step 6: Grant of Incorporation Certificate

The MCA will issue the Certificate of Incorporation (COI) with the Company Identification Number (CIN), PAN, and TAN after a successful document verification process.

Frequently asked questions

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?.