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Private Limited Company Registration

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

Online Private Limited Company Registration

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.

Management and shareholder requirement for Private Limited Company Registration

Directors Shareholders
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.

Checklist for Private Limited Company Registration

Depending on the various types of Company registration, the checklist will vary. The checklist for Private Company is as given below:

  • It must have a minimum of 2 directors.
  • It requires Minimum 2 shareholders. However, both (Director and shareholder) can be the same person.
  • One of the directors must be resident in India.
  • No minimum paid up capital requirement is present for private company registration.

Private Limited Company Registration Procedure

1. Apply for DSC (Digital Signature Certificate)

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.

2. DIN (Director Identification Number) application

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.

3. Name Approval

For name approval, one needs to apply at the MCA Portal.

  • RUN (Unique) application is used for name approval.
  • Minimum 2 names at a time are proposed.
  • The fees for the RUN is Rs 1000/-.
  • Name after approval shall be valid for 20 days from the date of approval of Name.
  • However, for an existing company (Change of name) name approval, the approved name shall be valid for 60 days.
  • To protect the company name, logo, it is strongly advised to go for trademark registration.

4. Company incorporation Form

  • The application for incorporation of the company shall be filed in the e-form SPICE 32.
  • Now, along with form Spice 32, the newly proposed directors can obtain the DIN. 
  • The SPICE 32 now also facilitates the PAN and TAN application too along with the incorporation form itself.
  • Subscriber’s details are required to be filed with the incorporation form. However, a maximum of 7 subscribers’ details can be filled in. Well, that does not mean subscribers can be 7 maximum, to add a more physical signed copy of MOA and AOA is to be filled.

5. Scrutinisation and company registration certificate issuance

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

Our services include the following:

  • Guaranteed Name approval from the Ministry.
  • Filling of company incorporation application
  • Memorandum of Association and Article of Association
  • Business plan guidance
  • The legal agreement, corporate drafts set, letters on requirement basis.
  • Filling of e-forms with the MCA(Ministry of Corporate Affairs)

Why one should go for company registration?

Separate Legal Existence

Unlike Partnership firm or sole proprietorship, a Private company is a separate legal entity from the members it constitutes.

Limited Liability

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.

Perpetual Existence

A company continues its existence even after the death of all directors, or wherein the shareholders' opts out of the company.

Business Growth is Supported

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.

Reputation as a Corporate Entity

As compared to another form of Business Company registration enjoys a better reputation amongst the clients.

Better Credibility

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.

Entrepreneurship is Encouraged

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.

Transferability is Easy

Ownership transferability in case of Private company registration is easy. Only a few steps for change in shareholding, directorship and nominee information is required.

Right to own the Property/Asset ownership

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.

Issuance of share and Debentures

A Private company cannot issue debentures, secured, unsecured loans to public.

Financing

A Private limited company enjoys better borrowing funds capacity.

Documents Required for Private Limited Company Registration

From Directors and Shareholders

  • Scan copy of PAN or Passport
  • Passport Size photograph
  • Copy of address proof
  • Notarized rental agreement if any rental property used for the same etc.

For proposed registered address (Residential /commercial)

  • NOC from owner if applicable
  • Copy of electricity bill/Telephone Bill/Bank statement

What is the difference between Private Limited Company and Public Limited Company?

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
Members Minimum:2
Maximum:200
Minimum:7
Maximum: No Limit
Name Last word "Private Limited" Last word "Public Limited"
Public Offer No Yes
Stock Exchange No Listing For public offer, it is to be listed on stock Exchange
No. of Director Minimum: 2
Maximum: 15
Minimum:3
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

Tax liability for the company

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.

Private Company Registration Fees

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.

Frequently Asked Questions on Company Registration

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.

  • The biggest benefits are under various subsidies available to startups under the Startup India program. However the moment the turnover goes beyond 25 Cr in a financial year.
  • For the first three years, 0% Income Tax is to be paid.
  • 0% Tax on Capital Gain is applicable to startup for the first 3 years.
  • Startups are eligible for having fast-track processing of its cases.
  • It enjoys 80% rebate on Startup Patent Registration.
  • Startup enjoys a better edge for Funding.

Yes, FDI is allowed for new ventures under the automatic approval route.

  • We have an in-house team of lawyers/ Chartered accountant/ Company secretaries and experienced professional from all over India.
  • Our price is the most competitive in India
  • We focus on building the long-term relationship and have succeeded so far.
  • Our services are most satisfied services rated in India.

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.

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