Private Limited Company Registration

Indian entrepreneurs who are looking for private limited company registration can apply for it online in India. 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 registration of a Pvt. Ltd. company in India is entirely online with few steps. Let us first thoroughly understand the Pvt. Ltd. company registration process and also look at the benefits of a private limited company.

Pvt Ltd company registration process

• First step: Apply for Digital Signature. It is an electronic signature, which is used to sign form for secure and digital documents submissions.
• 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. Also apply for company PAN and TAN through SPICe+ form. After approving these forms certificate of incorporation will be issued by the registrar of companies.

Register private limited company

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 charges

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

Benefits 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.

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.

FAQs

How many director are required to register a Private Limited Company in India?

A minimum of two directors are required to register a Private Limited Company in India.

Can foreign nationals be directors in a Private Limited Company?

Yes, foreign nationals can be directors in a Pvt LTD Company, but at least one director must be a resident of India.

What is e Form SPICe+ ?

It is a single window governmetn platform for ease of doing business that provides multiple services of company incorporation and simplifies the process.

What is the process of obtaining DIN?

Any person who is going to become a director in a new company need to register for director identification number through SPICe form at the time of incorporation.