Ease to Registered Private Limited Company

What is a Private Limited Company..?

Ease to Registered Private Limited Company

Private Limited Company is the most favored form of business entity in India having perpetual succession with least of two directors & shareholders, the maximum being 15 and 50 respectively, is a must for private limited company registration.

This type of corporate corporation is one that many startups and established businesses take into consideration since it makes it simple to get capital investment, restricts liability protection to shareholders, and allows them to provide employee stock options as a means of encouraging staff members. A private limited company is the most advised legal structure for many small and medium-sized family-owned or professionally run businesses in India since it can be funded by bank loans, equity, or debt.

Private limited company types include:

• Company Limited by Shares: The Memorandum and Articles of Association establishes a nominal share level, above which shareholders’ liability is restricted.
• Company Limited by Guarantee: The amount of guarantee established in the Memorandum of Association serves as the limit on member ownership. This guarantee is utilized solely in the winding off process.
• Unlimited Companies: Members of limitless firms are personally liable indefinitely for the debts and liabilities of the company. They continue to be considered as an independent legal entity, meanwhile, and no member may be sued separately.

Advantages of Pvt Ltd Company

1. Limited risk to personal assets
2. Separate Legal Entity
3. Raising Capital
4. Trustworthiness
5. Limited Liability
6. Borrowing Capacity

Disadvantages of Pvt Ltd Company

1. Restrictions on Ownership
2. Cost of Compliance & Regulatory Compliance
3. Capital Requirements
4. Exit Challenges

Its Private Limited Company’s Structure

Information	Business having high turnover, entrepreneurs who need external sources of funding
Min no of Members	2
Compliance	High
Raising Capital	Easy
Tax Rate	@30%

Steps to register private limited company

Step 1: Digital Signature Certificate (DSC)

A Digital Signature Certificate (DSC) from the Controller of Certification Agencies (CCA) is required for each director and shareholder. This entails supplying necessary information including a phone number, email address, PAN, Aadhaar card, and passport-sized pictures. Additionally, if necessary, documents notarized and apostilled by foreign nationals must be provided.

Step 2: DIN

If you want to serve as a director for an organization, you have to obtain a Director Identification Number (DIN). Directors must supply DIN, which must be included on the registration form.

Step 3: Name Approval

To obtain a distinctive business name, start by filling out the SPICe+ Part A form. This comprises identifying the main industrial activity division, determining the company type, class, category, and subcategory, and providing a thorough business description. Two names need to be suggested for approval.

Step 4: Drafting MOA and AOA

Write the important firm information in the Memorandum of Association (MOA) and Articles of Association (AOA). Get professional and subscriber digital signatures before presenting these documents to the MCA for approval.

Step 5: Incorporation Application

The MCA will issue the Certificate of Incorporation (COI) with the Company Identification Number (CIN), PAN, and TAN completing a successful document verification procedures.

Step 6: PAN and TAN Application

Step 7: Company Registration in 7 to 15 Working days

Required Documents for Register Pvt Ltd company

@taxcureindia Private limited Company PAN CARD (Director) ADHAR CARD (Director) DSC (if you have) PHOTO (Director) TRADE NAME ( XYZ ENTERPRISES) NATURE OF BUSINESS LIGHT BILL (For Address) RENT AGREEMENT (if office is rented) PASSPORT/VOTING/DRIVING LICENSE BANK STATEMENT (director)

COI – Certif
MOA-AOA
DSC and DIN
PAN
PF-ESIC Certificate

FAQ

1 How do I register a private limited Company?

Step 1: Digital Signature Certificate (DSC)

 Step 2: Director Identification Number (DIN)

Step 3: Registration on the MCA Portal.

Step 4: Certificate of Incorporation.

2 Who is eligible for Pvt Ltd?

A Private Limited Company must have at least 2 Shareholders, and extend their maximum number to 200.

3 What is the cost of Pvt Ltd company?

Private Limited Company Registration Fees

 The total cost of Private Limited Company registration in India, including government and professional fees, starts from ₹7,499 and takes around 7-10 working days.

4 GST mandatory for Pvt Ltd?

The sales or turnover of your business in a year if it crosses the threshold of 40 lakhs (Goods) & for services 20 lakhs GST registration is mandatory.

5 Can one person open Pvt Ltd company?

In a Private Company, a minimum of 2 Directors and 2 Members are required.

6 CA required for company registration?

To register a company, you need to use the MCA Portal. However, if you are not a Chartered Accountant or a legal expert, you will require the assistance of a legal expert to complete the registration process. This is because many documents need to be verified by a Practicing Chartered Accountant.

7 How much capital required for Pvt Ltd?

The private limited company must have an authorized share capital of Rs. 1 lakh. Due to an amendment to the Companies Act, it need not have any minimum paid-up share capital.

8 How to form a company?

Step 1: Check the company name.

Step 2: Obtain the pre-registration documents.

 Step 3: Select your preferred business type.

Step 4: Register the company online.

 Step 5: Receive the Certificate of Incorporation.