Registration of Private Limited Company

The basic trait of private limited company is liability of the members is limited up to the amount of shares respectively held by them. This is traditional business concept in India. Reason behind the huge trend of this business structure is due to its numerous advantages attached with it like limited liability, perpetual succession, employee attraction, separate legal entity. In today’s time everyone wants to grow and not everyone wants to take huge risk. Therefore forming and incorporating a company is the best option when you want to explore and enjoy new talent and business ideas of people and at the same time with limited liability.

As per Section 2 (68) of the Companies Act, 2013, A Private limited company is a company having a minimum paid-up share capital as may be prescribed, and which by its articles,

• restricts the right to transfer its shares;
• except in case of One Person Company, limits the number of its members to two hundred.
• Prohibits any invitation to the public to subscribe to any securities of the company.

Advantages

1. Separate Legal Entity :
   A Private limited Company is a separate legal identity in the court of the law, meaning assets and liabilities of the business are not same as the assets and liabilities of the directors. Both are counted as different. The members of the Company may come and may go but Company may not go that means the members are different and the Company is different. Company can own assets on its own name and can sell. It can sue and can be sued in a court of law.

2. Limited Liability
   The liability of the members of the Company is limited. The Directors or Shareholders are not personally liable for the debts of the Company. If in any case company is not able to pay the debts in that case personal assets of members will not be used to pay the debts of the Company as the Liability of the person is limited. The lender or creditor can recover the loan amount only by selling the assets of the Company.

3. Builds Credibility
   The financial statements are required to be filed annually at MCA portal with ROC which means the data of every company is available on a public database which improves the credibility of the company as it makes it easy to authenticate the details.

4. Easy Transferable Ownership
   It is easier to subscribe or leave the membership of the company. Also it is easier to transfer the ownership. The members of the Company may easily exit the Company by simply signing a Share Transfer Form.

5. Separate Property
   A Company as a legal entity is capable of owning its funds and other properties. The property of Company is not the property of its shareholders.

6. Taxation
   Companies are often taxed at a lower rate and are provided with better taxable benefits as compared to other forms of business organization. So it is better to grow business by forming a company and earn more by enjoying lower tax rate of company.
7. LEGAL FORMALITIES
   Legal formalities are sometimes very expensive and time-consuming. If you’re planning to start a public company, you better be prepared because there is a long list of legal formalities for forming a public company. Private companies have a comparatively shorter list.
8. MANAGEMENT AND DECISION MAKING
   Management and decision-making become more complex and confusing in public companies as more number of shareholders is to be consulted. This complex procedure is eliminated in a private company as the number of shareholders is less.

DOCUMENTS

Directors Documents

• Directors PAN
• Directors ID Proofs
  Aadhaar Card or Voter ID or Passport or Driver’s License
• Directors Address Proofs:
  Latest one month Savings Bank statement or
  Latest Telephone Bill on his own name or
  Latest Moblie Bill on his name or
  Latest Power Bill on his own name.
• Directors latest passport size photograph
• Email ids
• Directors Mobile Numbers linked with their Aadhar
• In case of Foreign directors, International Passport is mandatory

Company Documents

• Registered Office Address Proof:Latest Electricity bill/mobile bill/ Telephone bill (not older than 30 days)
• No-objection Certificate from the Landlord (If premises are rented)
• Rental Agreement from the landlord (if the premises are rented)
• Sale deed/property deed (In case of own premises)
• Company email id.

REQUIREMENTS

1. Minimum No. of Directors : 2
2. Minimum No. of Shareholders : 2
3. The directors and shareholders may be the same persons and none of them can be minor. One of the directors must be resident Indian.
4. Name of the company: Every company must have its own unique name. Proposed name should not match with the name of any other company.
5. Minimum Capital: No minimum capital is required to form a Private Limited Company. A Private Limited Company can be registered with a mere sum of Rs. 10,000 as paid up capital and with 1 lakh minimum Authorized capital.
6. Digital signature Certificate (DSC) of directors is required because for applying name, forms are required to be submitted at MCA online which required to be signed digitally.

Availability of Name

After receiving all the required documents and information, the first step is to check the availability of name. The name should be unique and expressive. The name for approval should not resemble with any other companies name. So choosing the right company name is an important component is it will stay with the company throughout its life. The name of the company must end with private limited or limited. You can suggest 2 or 3 names in the sequence of preference. The name should be one which denotes the object or activities to be undertaken by the company.

REGISTRATION PROCESS

1. We will first ensure that all the basic requirements, details and information is properly received and checked.
2. After checking the name availability we will prepare the forms required to be filed for incorporation i.e Form DIR-2, Form INC-8, Verification under Rule 25 of the Companies Incorporation Rules 2014, draft main objects of the company
3. We will then prepare application for name for your Private Limited Company in Part A of SPICe Plus form
4. We will draft eMOA, eAOA and then will file the incorporation documents with MCA through in part B of a form called “SPICe Plus (SPICe +)” at MCA portal by paying the requisite fee.
5. After scrutiny, the officers of MCA will approve the form and issues you the Certificate of Incorporation through email. You will also get DIN approval letters through email from MCA.
6. You will get ePAN and eTAN through email from NSDL.
7. Your company’s PF and ESI registration numbers will be generated automatically along with your Zero Balance Company’s Current Account.
8. We will also send you MOA, AOA and other documents through email.