Private Limited Company Registration

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Private Limited Company Registration

We streamline your journey to establishing a Private Limited Company. Our comprehensive service includes advising on company structure, preparing all required documents, filing applications with the Registrar of Companies, addressing legal queries, and monitoring your application through to successful company incorporation.

Overview

A Private Limited Company (Pvt Ltd) is a famous business structure in India, ideal for entrepreneurs looking to balance operational flexibility with limited liability protection. This type of company can have a minimum of 2 and a maximum of 200 shareholders, making it suitable for small to medium-sized enterprises. Shareholders in a Pvt Ltd company enjoy limited liability, meaning their assets are protected in case of business losses or debts.

Registering a Private Limited Company in India involves several steps, including obtaining a Digital Signature Certificate (DSC), Director Identification Number (DIN), and filing the incorporation form with the Ministry of Corporate Affairs (MCA). Upon successful registration, the company receives a Certificate of Incorporation (CoI), along with a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).

Separating ownership and management is crucial, as shareholders (owners) and directors (managers) are distinct entities, promoting efficient governance. This structure is also beneficial for raising capital, allowing issuing shares and attracting investors.

Legal advisors like XpertFilz offer streamlined services to facilitate registration, ensuring compliance with MCA regulations. They assist in obtaining all necessary documents and licenses, allowing business owners to focus on growth and operations with peace of mind.

Private Limited Company Registration Process

Registering a Private Limited Company in India involves several vital steps to ensure the business entity is legally incorporated. Here is a detailed step-by-step guide:

Step 1: Reservation of Unique Name (RUN Name Approval)

Select two preferred names for your company and apply for name reservation through the Ministry of Corporate Affairs (MCA) portal. Ensure the proposed names are unique, do not infringe upon existing trademarks, and comply with legal requirements. You will receive a Name Approval Letter or Certificate confirming that your company’s desired name is reserved for a specific period, typically 20 to 60 days.

Step 2: Obtain Digital Signatures for Directors and Shareholders

Obtain a Class-II or higher category Digital Signature Certificate (DSC) from Certifying Authorities for all directors and shareholders. These digital signatures are essential for signing electronic documents during the registration process.

Step 3: Incorporation Application Submission (SPICe+ Form)

Prepare and submit the SPICe+ (Simplified Proforma for Incorporating a Company Electronically Plus) forms. Forms include:

– SPICe+ Part B: Basic company details.

– Memorandum of Association (MOA) and Articles of Association (AOA):

– AGILE-PRO-S Form: EPFO, ESIC, GST registration, bank account, and other licenses.

– INC-9: Declaration by subscribers and directors.

– Supporting documents: Address proof, identity proof, etc.

Once submitted, the MCA will verify the documents and issue the Certificate of Incorporation (COI), officially registering your company.

Checklist of Private Limited Company Registration

A checklist to ensure compliance with the requirements:

1. Number of Directors:

The Private Limited Company must have a minimum of two directors at all times, with a maximum of up to 15 directors allowed. At least one director must reside in India for 182 days in the previous financial year.

2. Company Name:

The proposed company name should be unique and not identical or similar to the name of any other company or trademark registered in India. The name of the Private Limited Company must include the term’ Pvt Ltd’ at the end.

3. Capital Requirement:

There is no prescribed minimum requirement for authorized capital. However, the company must have a minimum authorized capital of Rs 1 Lakh.

4. Registered Office:
The company must have a registered office address within India for official communications and legal purposes. The registered office can be a rented premise, but it must have a No Objection Certificate (NOC) from the owner.

5. Documents and Forms:

Prepare and submit the necessary documents, including MOA, AOA, INC-9, and AGILE-PRO-S Form.

6. Digital Signatures:
Obtain Class-II or above category Digital Signature Certificates (DSC) for all directors and shareholders. Register the DSC with the MCA V-3 portal.

List of Documents For Company Registration

1. Documents Required for Shareholders and Directors:

– PAN Card

– Aadhar card

– Passport-sized Photo

– Address Proof

2. Documents Required for Proof of Registered Office Address:

– Property Ownership Proof

– Rent/Mortgage/Lease Agreement

– NOC from the Owner

Additional Documents (if applicable):

– MOA and AOA

– INC-9

– AGILE-PRO-S Form

Compliances for Private Limited Companies

Operating a private limited company in India requires adhering to various mandatory compliances under the Companies Act 2013 and other regulations. Failure to comply can attract penalties and legal issues. Some essential compliance requirements are:

1. Appointment of Auditor (ADT-1)

Within 30 days of incorporation, the company must appoint an auditor and file Form ADT-1 with the Registrar of Companies (RoC).

2. Director DIN & KYC (DIR-3 KYC)

All directors must obtain DIN and update annually by filing a DIR-3 KYC before September 30th.

3. Commencement of Business (INC-20A)

Within 180 days of incorporation, shareholders must pay the initial subscription amount stated in the MoA. Form INC-20A needs to be filed declaring receipt of this amount.

4. Annual MCA Filings

a) Financial Statements (AOC-4) – To be filed annually within 30 days of the AGM
b) Annual Return (MGT-7) – To be filed within 60 days of the AGM

5. Income Tax Filing (ITR-6)

The company must file its annual Income Tax returns in form ITR-6 before the due date.

6. Other Key Compliances

– Issuance of shares and share capital compliance

– Convening board and shareholder meetings

– Maintenance of statutory registers and records

– Registrations under labour laws like EPF, ESIC, etc.

– GST and other tax registrations

Benefits of GST Registration

1. Limited Liability

One of the most significant advantages of a private limited company is that the liability of the shareholders/members is limited to the extent of their shareholding. Their personal assets remain protected in case of business losses or liabilities.

2. Perpetual Succession

A private limited company has a separate legal existence from its members. It can acquire assets, take loans, enter into contracts, sue or be sued in its own name. The company’s existence is perpetual and does not get affected by changes in membership.

3. Easier Transfer of Ownership

The ownership and management of a private limited company are easily transferable through the buying and selling shares. This provides flexibility in case existing owners want to exit or new investors want to join.

4. Tax Benefits

Private companies can avail of various tax deductions and incentives under the Income Tax Act compared to other business structures. They can claim depreciation allowances, offset losses, and use lower tax slabs.

5. Raising capital

Going public may be challenging for small businesses. Still, a private company structure makes raising funds from banks, venture capitalists or angel investors easier by issuing shares and debentures.

6. Corporate Credibility

A registered company lends credibility, trustworthiness and professional image over a proprietorship or partnership firm. This can attract more prominent clients and grow the business.

Private Limited Company Registration