Before understanding of Pvt Ltd Company Registration Process. we have to understand the, what is a Private Limited Company?
What is a Private Limited Company?
A Private Limited Company is the most common type of business entity in India. Business owners hold Pvt Ltd Company privately, and the members of the company have limited liability with respect to the number of shares they hold. The Ministry of Corporate Affairs registers and regulates Pvt Ltd Company.
Process of Pvt Ltd Company Registration
There are some simple procedures of company incorporation by this you can register private limited company online
Step 1:- Obtain DSC of all proposed Director
The first & foremost process for company incorporation is acquiring a DSC of all proposed directors.The Pvt Ltd Company directors must have their own Digital Signature Certificate (DSC) as it is required when submitting e-forms and tax returns.
An electronic signature, known as a Digital Signature Certificate, is required to authenticate documents sent to the government. Digital Signature Certificates are helpful in validating the personal information of the individual holder of such certificate when conducting online business.
What are the required documents for a Digital Signature Certificate?
- Passport- Sized Photo of the applicant
- Copies of the applicant’s address proof, self- attested
- Copies of applicant’s PAN card, self – attested
Step 2:- Get the Director Identification number
The DIN is a unique identification number allotted to directors by Ministry of Corporate Affairs. All the directors of the company need to acquire DIN to register their company. Director Identification Number is valid for lifetime unless surrendered, removed by MCA.
What are the required documents for a Director Identification Number?
- Passport- Sized Photo of the applicant
- Copies of the applicant’s address proof, self- attested
- Copies of applicant’s PAN card, self – attested
Step 3:- Company Name Approval
Before file a document for the incorporation of a company, the first step for an entrepreneur to start his venture with finding suitable names for their business. The private limited company submitted the E-form INC-1 to the Ministry of Corporate Affairs to reserve a specific name. Typically, the MCA approves all name approval requests in less than 5 business days.
Tips to choose the best name for your business:
- The Proposed name of your brand, business, or company should be in line with the objectives of the business.
- Keep it short & simple. Proposed Name of your company must be short and simple, So that the customers or shareholders can pronounce it easily.
- Proposed name is must not infringe any legal trademarks registered earlier.
- The name cannot be identical to any other company’s name.
- A suffix is an important part of the name of the company. The suffix associated with the company name helps in identifying the type of legal entity.
Step 4:- Obtain the Certificate of Incorporation
After getting the approval from the MCA regarding name reservation. The company must apply for incorporation via filling SPICe form online application for registration of a private limited company.
- Along with the SPICe forms, officials must draft a Memorandum of Association (MoA) and Articles of Association (AoA) for the private Limited Company.
- The MoA elaborate the objectives and name its activities.
- The AoA elaborates the nature of operations of the company and give a brief that how administrations will carry out its role.
- If the Department is satisfied with SPICe application, then they will approve that and the company will receive a Certificate of Incorporation along with PAN, TAN and ESIC number.
What i the eligibility for the Private Limited Company?
- The number of members cannot be more than 200 & minimum 2 shareholders are required.
- Minimum 2 directors & maximum 15 directors are required
- Minimum 1 Lac Paid up Share Capital are required
- Director Identifications Number of all the Directors is mandatory
- In case of foreign shareholding at least 1 director should be the resident
Supporting documents require for registration?
- In case Rented or Leased Premises, NOC from the owner is required.
- Copy of Rental agreement/ lease agreement.
- Affidavit of First Shareholders & Directors via INC-9.
- Form DIR-2 showing director’s consent.
- Self-attested proof of identity of the first directors & subscribers.
What are advantages of Private Limited Company Registration in India?
- Separate Legal Entity
A private limited company is a separate legal entity for its shareholders & directors. This means that the company can contact with other businesses & individuals and is liable for its debts. A company is a separate legal entity, the members of the company i.e., shareholders & directors are not personally liable for the companies liabilities.
- Limited Liability
The Remarkable advantage of a pvt ltd company is that the owners have the limited liability. It means that the shareholders assets are protected if the company goes into liquidation. And if the companies goes into bankruptcy the owners are only liable for the amount they have invested in the company.
- Fund Raising
A private limited company has numerous options for fund raising. Private limited company is having the option to take Startup India Portal Registration for raising fund in an easier manner. Now a days raising capital for the business can be challenging and private limited companies are becoming increasingly popular as they captivate investors into the business more due to their reliability. This can be done throw issuing new shares, acquiring loans or issuing bonds.
- Debt Capacity
A private limited company has more borrowing options then an LLP. Bank loans are not merely simple to obtain (in comparison to OPC’S & LLP’S) but the options of issuing debentures and convertibles debentures is always accessible to pvt ltd companies.
- Professional Image
A Pvt Ltd Company grants a professional image to businesses, which can be important when alluring new customers or investors. This also demonstrates that the industry is established and has longevity because private limited companies are much more credible and established than sole traders or partnerships. Moreover, private limited companies commonly have their website & letterhead, confering customers & suppliers the sense of trust in the businesses
- Easy Exit
Individuals or entities can buy or acquire private limited companies, either partly or wholly, without causing any disturbance to the current business operations.
- Smoother to manage
Private limited companies has become gradually popular, much online accounting software incorporated these features into their systems, making managing finances extremely simple with options to setup unlimited bank accounts, income, classes & expenditure items which involves filling annual returns & reports with Companies House, holding shareholders meetings, and keeping proper company records. Additionally, private limited company must designate at least 1 director & 1 company secretary
How VakilTrust assist in simplifying process of Pvt Ltd Company Registration?
With VakilTrust, you can incorporate your private limited company in just 10 days (subject to departmental approvals). Acquiring supporting documents is actually a challenge so look for the assistance of our experts. Incorporate a Company is simple, quick & can be done online with VakilTrust in 3 simple steps:
- We assist you to enroll your directors with the Ministry of Corporate Affairs (MCA)
- VakilTrust helps you to choose the right company name.
- We draft and upload all the supporting documents for your company incorporation.
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