Private Limited Registration

Overview

It is one of the best way to form a business Organization with limited liability entity. Private limited company are those companies where ownership is held by only few persons (Normally founders or group of private investors). A private limited company can have a minimum of two members and a maximum of Two hundred members. It prohibits any invitation to the public to subscribe for any securities of the company. Start-ups and growing companies prefer private limited company as it allows outside funding to be raised easily. Banks and other lenders would also much rather prefer lending to private limited companies, as compared to sole proprietors.

A Private Company becomes a “small company” if the paid up share capital does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees and turnover as per last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than twenty crore rupees. Provided nothing shall apply to a holding company or a subsidiary company.

Benefits of a Private Limited Company

  • A Private Company has no obligation to call the Statutory Meeting of the member.
  • No restriction on payment of Managerial Remuneration
  • A company to be incorporated as a Private Company must have a minimum paid-up capital of Rs. 1,00,000 only.
  • Only 2 persons are required to form a Private Limited Company.
  • The directors need not retire by rotation.

Obligations of a Private Limited Company

  • Filing Annual Return in form no MGT-7.
  • Complying with Statutory laws such as Excise Duty, Sales Tax, Service Tax, etc.
  • Maintaining a register containing minutes of every general meeting and every meeting of Board of Directors
  • Every private company having turnover of Rs 200 crores or more during the preceding financial year shall be required to appoint an internal auditor or a firm of internal auditors
  • Private limited companies are required to keep cost records if their turnover is Rs 25 crores or more & also do cost audit if their turnover is Rs 100 crores or more

Why Choose Private Limited Company Registration

  • It is flexible and has limited liability.
  • A greater capital contribution and greater stability.
  • The possibility to grow big and expand

Required Documents

  • Copy of Rental Agreement (along with NOC from owner)/Sale Deed in case of own property.
  • Telephone or Mobile Bill/Electricity or Gas Bill Scanned copy of Notarized Rental Agreement in English
  • Affidavit from director and shareholders
  • Copy of PAN card, Identity and Address Proof for DIN for up to 3 directors

Process

Due to Digitalization of registration process, it’s become easy to register the private limited company

Obtaining DSC & DIN

Due to online process at least one director need to have digital signature (Dsc) which is required to sign electronic document.

For obtaining DSC, self-attested copy of director's pan card & his address proof is required.

Obtaining DSC & DIN

Firstly You need to find your name has not been taken

Secondly, you need to comply with the MCA guidelines. You can do so by ensuring that the name has a unique component and a descriptive component.

Company Registration Form & MoA & AoA Submission

Copy of Rental Agreement (along with NOC from owner)/Sale Deed in case of own property

Telephone or Mobile Bill/Electricity or Gas Bill Scanned copy of Notarized Rental Agreement in English

Affidavit from director and shareholders

Copy of PAN card, Identity and Address Proof for DIN for up to 3 directors

Company Incorporation Certificate

Once all the documents are approved by MCA , it will issue a incorpation certificate.

Apply for PAN & TAN & Bank Account

On the basis of incorporation certificate u can apply for the TAN , PAN & Bank.

FAQ's

1.How many members are required to form a private limited company?

To form a private limited company, minimum 2 members are required and maximum50 members are allowed.

2.Can one person start a private limited company?

Minimum two directors are required to incorporate a private limited company.Companies Act, 2013, has introduced the concept of One Person Company(OPC) private limited, in which a single individual can start a private limited company. Thus, if you plan to incorporate OPC, you can incorporate it with onlyone director.

3.For small businesses, what are the benefits of Private limited company?

It provides creditability to business in the eyes of financial institutions, suppliers and potential clients. As it makes easier for companies to get loans at favorable terms from banks or convincing potential clients while entering into deals.

4.Is there any qualification to become a director or shareholder in a Private Limited Company ?

Any individual can become a shareholder in a private limited company. For becoming a director in a company, no professional or educational qualification is required.

5.What is Director Identification Number (DIN)?

Any person intending to become director in a company must apply for director identification number, issued by the Ministry of Corporate Affairs. Proof of identity and address is required to be submitted along with requisite fee while submitting the application for DIN. If the documents are in order, the DIN is approved within 3-4 days. The approved DIN is valid for life and the same DIN can be used by the director, even if he/she has directorship in more than one company.

6.Is it allowed to change registered office of the company after registration ?

Yes, A company can change its registered office any time after following specified procedure. The changed address can be situated within the same state or in a different state from the state in which it was originally registered.

7.What is the minimum capital required to start a private limited company?

In the Indian Law, it is being depicted that there is no minimum requirement of Capital while registering a Private Limited Company, but in reality, a minimum of Rs. 1 Lakh is required as Capital to register a Private Limited Company.

8.What is the maximum number of shareholders in a private limited company?

Limited private companies. A minimum of one shareholder and a maximum of 50shareholders (otherwise the company will become a public company). A minimum of one natural director and no maximum number of directors