Private Limited Company Registration

In this article, we will take a look at private limited company registration process. Along with the advantages of private limited company  and the disadvantage of private limited company.  A private limited company (Pvt ltd company) is the most common business vehicle for an entity seeking to profit while enjoying the benefits. The process of forming a Pvt Ltd company in India is entirely online. Let us first thoroughly understand the Pvt ltd company registration process. Further, we will take a look at the benefits of private limited company and disadvantages of PVT ltd.

Private Limited Company Registration

Timeline for Pvt ltd company registration process

Private limited company registration will take 5-7 days subject to the Name Approval.

Pvt limited company registration fees

To Register a Private limited, the cost will be in the range of Rs. 10000-15000 inclusive of professional charges

Pvt ltd company registration process

First step: Apply for Digital Signature

What is DSC

It is an electronic signature, which is used to sign three-from

Second Step: Apply for DIN—it is Director Identification Number. It is a numerical digit number issued by the govt. If a person wants to become a director of a company or partner in LLP, he needs DIN

Third Step: Apply for Name Approval. After getting the Digital signature & DIN, the owner needs the company’s name approval. Regarding this, he has to give At least a 3-4 name option, which should be as per guidelines issued by the MCA. Let`s Break the company`s name into three parts (ABC Services Private limited).

Part1: Let say ABC (totally discretion)

Part2: Services/ solution/ technologies etc (Describe the nature of business)

Part3: Private Limited

Fourth Step: Drafting of all the incorporation related like MOA (memorandum of association), AOA (article of association), INC-9 (incorporation-9), DIR-2 (Registration of Director-2 to the registrar of companies), INC-10 etc. Once the name has been approved, the owner has to prepare some documents with an approved name like MOA, AOA, declaration affidavit, for the mass of the same has been prescribed by the MCA.

Fifth Step: Filling of e-Form (Spice -INC-7,33,34) at Regency all attachments has been ready, we have to prepare e-Forms that will also be signed with the digital signature of professional & file the same with MCA by paying prescribed fees depending open the amount of capital & State where our registered office will be situated. After approving these forms certificate of incorporation will be issued by the registrar of companies.

That’s all about pvt ltd company registration process. Now we will discuss The advantages of private limited company as well as the disadvantage of private limited company one by one. So, keep reading

Advantages of Private Limited Company

Benefits of private limited company are as follows:

• Flexible Management Structure

Private limited companies are well-known for being used by sole proprietors. One can start a company only with 2 members and a maximum of 200 members according to Company Act 2013.

• Limited Liability

Each shareholder has limited liability for the company. The individual asset will be safe. This means if a company faces loss, the owners are only liable for the money they put into it. The money of a company stays with it and does not fall on the shoulders of the owners. This is a significant benefit for new businesses because it protects their investments from potential business failures.

• Existence without interruption

A company has ‘perpetual succession,’ which means it will continue to exist until it is legally dissolved. A company is unaffected by the death or other departure of any member and continues to exist regardless of membership changes

• Dual Relationship

A company can enter into a valid and binding contract with any of its members. So it is possible for someone to be in charge of a company while also working for it. As a result, a person can be a shareholder, creditor, director, and employee of the company all at the same time.

How to do company formation

How to apply for Company PAN card

That’s all about the advantages of private limited company or benefits of private limited company. Now let’s see what are the disadvantage of private limited company. (Private limited company registration)

The disadvantage of Private Limited Company

• The registration of a private company limited by shares takes more time. However, once registered, a private limited company enjoys a lot of benefits and rights.
• Any shareholder cannot sell and transfer his/her shares to another person unless another shareholder agrees to the same. It restricts the transferability of shares
• The private limited company not being able to issue prospectuses to the general public.
• In any case, the number of shareholders in a Private Limited Company cannot exceed 50.
• In addition, shares cannot be quoted on the stock exchange.

I will conclude the topic of private limited company registration. Now you know the Pvt ltd company registration process, advantages of private limited company(benefits of private limited company) and disadvantage of private limited company. If you have any questions, please leave a comment.