Are you clueless about how to register your company as a Private Limited Company? Well, we got you covered. Here’s a complete guide on Private Limited Company registration.
Private Limited Company registration is a popular form of the legal structure of all businesses in India. The Ministry of Corporate Affairs (MCA) governs a private limited company in India.
Registering a company through Easifyy is smooth as it is done completely online.
To register a company as a private limited company, there should be a minimum of 2 members and a maximum of fifty to act as directors and shareholders, respectively.
Private limited company directors have limited liability to their creditors and are allowed to sell only assets of the company if there is a scene of default.
Company registration is a mandatory step before beginning a new venture. Therefore a private limited company registration process is quite important as it provides authenticity to your business.
So make sure that you have all the required private limited company registration documents.
Definition of a Private Limited Company according to Section 2 (68) of the Companies Act, 2013
Private company means a company having a minimum paid-up share capital as may be prescribed:
(i) restricts the right to transfer its shares;
(ii) except in case of One Person Company, limits the number of its members to two hundred:
(iii) prohibits any invitation to the public to subscribe to any securities of the company.
Moreover, you'll get various advantages with the company registration as registration is easy as well as dissolving the company is also easy. Around 20 lakh companies have been registered as private limited companies as of October 2020.
Minimum Requirements for a Private Limited Company Registration
• Minimum of 2 Directors
• Minimum of 2 Shareholders
• One of the Director must be Citizen of India
• Digital Signature Certificate for 2 promoters
• Minimum Authorized Capital to be 100,000 (INR One Lac)
• Director Identification Number for all Directors
Private Limited Company Registration Documents
To get your private limited company registration done, one must have the following documents, which are mandatory for registration.
The registration requires a copy of the PAN card of the proposed Directors of the Company.
Director's name must be mentioned in the address proof as mentioned in the PAN card and the current address of the director.
Registered Office Proof
Office proof must be provided along with identity, address, and residential proof. The office proof is essential to provide legality to the registered office address of the company.
The registered document of the premises in the name of the company.
A copy of an agreement in the name of the company with the copy of the rent paid receipt not older than a month and NOC from Land Lord.
Also, one must have the following documents:
• The authorization from the Landlord where Name must be mentioned in the Electricity Bill or Gas Bill or Water Bill.
• Proof of evidence of any utility service like gas, electricity, etc., to represent the address of the premises in the name of the owner not older than a month.
Benefits of a Private Limited Company
There are a number of advantages to registering your firm as a "Private Limited Company."
• Easy registration and easily manageable
• Opted by banks, VC's and investors.
• Smooth dissolution of a company
• The flexibility of partnership and benefits of a Public Ltd. Company
• Limitation of your liability as it acts as a separate entity
• Easy allocation and redistribution of shares to the directors and other investors of the company.
Steps to do Private Limited Company Registration
There are five steps to getting a company registered as a Private Limited Company.
Application of DSC &DIN/DPIN:
The first step involves partners applying for a Digital signature and DPIN. A digital signature is an online signature that is used for filing.
On the other hand, DPIN is the Directors' PIN number issued by the "MCA." And you can skip this step if the directors have both the "DSC and DPIN."
Approval of Name
You must provide at least three name options for your company to the MCA, of which one will be selected. The names should be unique and suggestive of the company's operational business.
MOA & AOA Submission
With name approval, the next step is to draft MOA and AOA so that they can be filed with the MCA. In addition, you are required to attach the "Digital Signature Certificates (DSC)" with both of them as it's mandatory.
Acquire Incorporation Certificate
It takes around 15-25 days to form a Private Limited Company and get the certificate of incorporation. The certificate acts as proof that the company has been created.
Contact Easifyy for a Private Limited Company registration in India.
Apply for PAN, TAN, and Bank Account&GST Certificate (if any)
Apply for PAN and TAN, then submit the Incorporation certificate, MOA, AOA, and PAN at a bank to open your bank account.
8 Benefits of Private Limited Company Registration in India
Deciding on the objectives of the company is the foremost step to begin a business. Then, the business structure and the operations of the company.
The private limited company is preferred by most entrepreneurs as it is a privately held entity. The private limited company can have 50 shareholders and limit the liability of the owner to their shares.
Unforeseen losses in business can occur anytime. So if a firm is on the verge of closure due to a financial crisis, the shareholders of the private limited company face no risk of losing their assets. Hence, only the amount invested while starting a business is lost.
Since there is no difference between shareholders and directors, private limited companies can easily accommodate the equity funding. Venture capitalists are likely to invest in any other structure.
Private limited companies in India can be sold or transferred to other individuals without any disruption in business operations.
Companies Act 2013 regulates the private limited companies which follow particular procedures, disclose norms and also comply with legal requirements.
A private limited company puts forward many advantages over other entities. So, it's better to get registration done by the experts from Easifyy to avoid any discrepancies.
Registrar of the companies requires a lot of information about the structure, operations, and financials of a private limited company. Subsequently, the information lands up in the public domain.
So, lenders, vendors, and employees can find information like authorized capital, registered office, etc. therefore;, it increases the credibility of the business.
If a business firm is aiming to develop a product on a global scale, then it's important to get investments with foreign firms. So private limited companies now come into the role.
Having a private limited company in India gives you the advantage of approaching through an automatic route without needing government approval. Only the partnerships, LLPs need acceptance from the government.
Business-minded entrepreneurs are always on the lookout for opportunities to tap. The private limited companies have a scope of tapping the chances as the business grows over time.
The private limited companies in India have privileges of borrowing funds as they have more choices of taking debt. The financial institutions and banks welcome private limited companies better than the partnership entities.
How will Easifyy help in registering a Private Limited Company in India?
Easifyy is a one-stop destination to get assistance in registering your business. How will we help you? Have a look at the steps below.
1. Once Easifyy business consultant receives a request, we reach you and understand your business requirements. Also, we suggest a suitable representative for you.
2. Expertise will be assigned to you, collecting and organizing the necessary documents.
3. We apply for Digital Signature Certificate, and side by side name request is sent to MCA for approval.
4. The incorporation documents will be drafted after the approval, which all the Directors and shareholders must sign.
5. The signed documents are thereon sent for approval.
6. After the incorporation of the company, and incorporation certificate is issued along with PAN and TAN for the Directors.
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Post-Private Limited Company Formalities
Some of the formalities that need to be done post-forming private limited Company is:
The Company must hire corporate staff for compliance matters.
The name and location of the Company are fixed outside each office.
The company letterheads and official records of the Company must contain the name and registered office address of the Company.
Companies need to share certificates with all shareholders within two months of the Company’s establishment.
A statutory register needs to be maintained by the Company consisting of member’s information, list of directors, debentures, etc.
The Board of Directors requires to assign the first Auditor of the Company i.e, a Chartered Accountant within 30 days of starting its operations.
There is no fixed timeline for private limited company registration. It depends on document submission and incorporation forms.
DSC and DIN takes about 1-2 days whereas minimum 2-3 days for name approval by the government. The procedure can take a minimum 10 days to complete the whole incorporation of the private limited company.
Register your company online with Easifyy. In addition, the interface of our online-platform is user-friendly which allows you to register your company at your own pace and comfort.
The expert consultants of Easifyy will be assisting you throughout the process.
Also, we will be available and helping you in drafting the documents required for company registration. And our team will coordinate for the post private limited company registration.
So sit back and relax while Easifyy makes sure you receive company registration without any hassle.
• I need to raise capital from external sources. I am considering approaching Investors. Do i get any advantage on getting registered as a private limited company over other forms??
a. The capital structure of a private limited company can easily accommodate equity funding. So Venture Capitalists prefer Pvt. Ltd. over any other structure b. Being a regulations compliant entity, it becomes easy to attract capital infusion from financial institutions like banks, NBFCs, etc. .
• Do I need to be physically present during this process??
No, your physical presence is not required during the process..
• I already have my digital signature certificate and DIN. Will the package value remain the same??
If you already have a DSC and DIN, our experts will offer you some concession accordingly on the above package..
• Can an NRI also become a director in company? And what additional documents will be required to be submitted??
a. Yes, an NRI or any foreign national can become a director in a private limited company. But such a person can be taken as a director only when there is one director who is a Resident of India. Additional documents required: b. Copy of Passport Copy Which is attested by Consulate of Indian Embassy or Foreign Public Notary. c. Copy of Driving License/ Bank Statement or Electricity Bills copy or Any Property Tax Payment Receipt which is attested by Consulate of Indian Embassy or Foreign Public Notary. d. RBI approval is required for foreign capital contribution. Additional charges will be applicable for RBI approval. Our experts will advise you on the applicable charges. .
• I and my partner are both directors and shareholders in our company. We wish to bring in two additional shareholders as well. Is that covered in the package??
. In the current package, we cover up to 2 digital signatures for two directors. For two additional shareholders, you need to secure two additional digital signatures certificates. We offer digital signature certificates - Click here to purchase digital signature.
• Our company would like to bring in a foreign citizen as a director. Is this covered in your package??
a. To bring in an additional director, you need to secure a digital signature (DSC ). b. Click here to purchase a digital signature c. Only the passport of the foreign director is required. In some countries, a residency certificate will be provided. These need to be submitted for the application. Any incidental charges here are not covered in the package. .
• Our company would like to bring a non-resident Indian as a director in the company. Is this included in the package??
a. To bring in an additional director, you need to secure two digital signatures (DSC) b. Click here to purchase a digital signature c. If the individual is residing outside India at the time of the application, then he or she needs to get the PAN, Aadhaar, current address (in the country of residence), permanent address attested by the Indian embassy in that country. Any incidental charges here are not covered in the package.