A Private Company is a corporate entity having a legal existence and right to hold property or asset in its own name. Private Limited Company is one of the most common types of company registration in India; it is the most widespread and most popular type of corporate legal entity. Being a legal entity it can sue and be sued too. In case you wish to register a private company, it must be registered under the Companies Act 2013.
At initial level and as a startup you may start as the private company initially and later if you wish you may go for conversion of the private limited company into the Public limited company. Private Company registration has less compliance when compared to the Public limited company compliances.
The word "Private Limited" must be added at the end of its name by a Registered Private Limited Company
Not only private company, even public company or OPC registration process is completely online now. Private Company registration is done on the MCA (Ministry of corporate affairs) Web portal. This makes the Private company registration suitable and easy. Now, one can register a company from anywhere in the world. One can access the MCA web portal and register the company.
For an online Private company registration, one needs to file e-forms online along with required documents. However one may also take the help of Private company registration expert to register its company. Swaritadvisors are the first choice of entrepreneurs willing to go for company registration.
|Minimum: 2||Minimum: 2|
|Maximum: 15||Maximum: 200|
As per the requirement under Companies Act 2013, every private limited Company shall have at least one Director whose stay in India is not less than 182 days for a total period in the previous calendar year.
Depending on the various types of Company registration, the checklist will vary. The checklist for Private Company is as given below:
DSC is used to sign any e-form digitally Company Name approval. Hence all those authorized signatories /directors who are required to sign the e-forms shall obtain the DSC.
DIN can be applied along with the company registration application form SPICE -32. However maximum 3 Directors can obtain DIN along with SPICE 32. After incorporation in order to add new director E-form DIR-3 is required to be filled.
For name approval, one needs to apply at the MCA Portal.
On successful submission, it will be scrutinized and finally, the certificate of incorporation of the company shall be issued along with the CIN, PAN & TAN.
Our services include the following:
Unlike Partnership firm or sole proprietorship, a Private company is a separate legal entity from the members it constitutes.
Owner is benefited if liability is limited and not unlimited. For instance, if the company suffers from any loss then in such case the personal assets of the member of the company won't be affected.
A company continues its existence even after the death of all directors, or wherein the shareholders' opts out of the company.
A company form is preferred by the investors for the investment. A company can deal with venture capitalists, angel investors, or any financial institutions for fundraising.
As compared to another form of Business Company registration enjoys a better reputation amongst the clients.
A company is registered under the Companies Act 2013. Hence it has to comply with the compliances under the Act. A company has gains the faith and trust with customers and let the company work for long-term goals.
Via Private company registration and especially through one person company registration single ownership, the individual idea is promoted. The owner of One Person Company enjoys full authority over the decisions taken inside the company.
Ownership transferability in case of Private company registration is easy. Only a few steps for change in shareholding, directorship and nominee information is required.
A company is allowed to own the property on its name. A company can also own machinery, building, intangible assets, land, residential property, factory etc. Members have no right over the property owned by the company.
A Private company cannot issue debentures, secured, unsecured loans to public.
A Private limited company enjoys better borrowing funds capacity.
|Description||Private Company||Public Company|
|Share Capital||Minimum: Rs. 100000 Thus now it can be floated with any amount of share capital||Minimum: Rs.500000|
Maximum: No Limit
|Name||Last word "Private Limited"||Last word "Public Limited"|
|Stock Exchange||No Listing||For public offer, it is to be listed on stock Exchange|
|No. of Director||Minimum: 2
|Ease of Investment||Easy to accommodate||Difficult a compared to Private Company|
|Recommended for||Start-up and Growing Company||Big Company engaged in professional services|
Flat rate of 30% is applicable to the Private Company. Tax is to be paid by filling Income tax returns with the income tax department.
Our professional team at Swarit advisors consists of India’s best professionals and serves the clients in the best way possible and at the best competitive price. Apart from professional fees basis, the e-forms involved certain statutory fees are also required to be paid at the MCA portal.
To know more about company registration process post query at our site.
Let’s take a look at some of the frequently asked questions to have a better understanding of the subject.
Resident in Indian director means a person who has lived in India for not less than 182 in the previous calendar year.
Yes, the name of the company must be unique and not identical. It must also not be similar to the registered trademark. Also, the name of the company must be as such that it signifies the activity of the business. The name of the company shall also signify the main, prerequisite objects.
IT is not at all required to be physically present at our office or ministry of corporate affairs. Your task will get very easy, if you assign your work to Swaritadvisors, we take full responsibility to get your company registration on time. We shall collect the documents from you and execute the registration procedure.
Startup India is the government's initiative with a vision. The vision is empowering the new Startups, and give wings to their innovation and design. In addition to this, the Government of India has announced the Action Plan to facilitate in the best possible way the Startups. The plan was executed on 16th January 2016.
Yes, FDI is allowed for new ventures under the automatic approval route.
For Company registration, you have multiple choice thought company registration as the private limited company requires no minimum paid up capital. However, in general, entrepreneur keeps Rs. 1 lakh rupees or such higher paid-up Capital as may be prescribed.