Pvt Ltd Company Registration
Pvt Ltd Company Registration is a legal business structure with advantages like separate legal existence, limited liability, easy transferability of ownership, and eligibility to get loans. It is also required to adhere to a number of compliances.
The minimum requirements include identity proof (passport, driver’s license, or national ID card), address proof (recent utility bill, bank statement, or rental agreement), and no-objection certificate from the landlord. These documents are submitted to the Registrar of Companies during the company registration process.
Benefits
Pvt Ltd Company Registration is the preferred choice of business entity for entrepreneurs in India. It offers multiple benefits, including limited liability and an uninterrupted existence. Moreover, it can attract more investors and help in building credibility.
Incorporating a private limited company requires submitting several documents to the Registrar of Companies, including the Memorandum and Articles of Association, Director Identification Number (DIN), Digital Signature Certificate (DSC), a Proof of Registered Office address, a list of shareholders and directors, and the authorized share capital. In addition to these documents, the company must submit the statutory compliances. These include financial filings, board meetings, and shareholder meetings.
The governing laws of India provide various incentives to entrepreneurs who choose to register their business as a Pvt Ltd Company. The income tax law, for instance, offers three consecutive financial years of tax holidays for startups that are registered as a private limited company or an LLP.
Unlike proprietorships and partnerships, private limited companies are independent legal entities that have separate liabilities from their owners. This means that the company’s creditors cannot claim the owner’s personal assets, even if the company fails to pay back a loan. In addition, shareholders’ liability is limited to the amount of shares they have subscribed to the company. This is an important benefit for investors and lenders.
Requirements
Whether you plan to start a small business or a big enterprise, a Pvt Ltd Company Registration can provide the required foundation for its future growth. While the procedure of incorporation may seem straightforward, it’s important to understand the requirements beforehand so that you can avoid any complications during the process. This includes gathering the mandatory registration documents and following a compliance checklist to ensure that all necessary details are submitted.
One of the first steps is securing a Digital Signature Certificate (DSC) for all proposed directors. This is essential because the entire registration process takes place online, and forms must be signed digitally. Also, the DSC is necessary for signing the e-MoA and e-AoA that must be filed with the MCA portal.
The next step is drafting the Memorandum of Association (MoA) and Articles of Association (AoA). These documents outline the company’s goals and internal rules and regulations. Once they are approved by the ROC, they can be filed with the ROC along with the SPICe+ form. Other important documents include:
During the filing process, you will need to provide the name of your company, its purpose, authorized capital, and the contact details of the registered office. You should also submit a valid identity proof, address proof (passport, voter ID card, driving license, or Aadhaar card), and utility bills that depict the company’s official address. In addition, you will need to obtain an NOC from the landlord or a property deed to prove that the company’s registered office is a permanent address.
Documents
A private limited company is a business entity that limits the liability of its owners to the amount of capital they have invested. This protects their personal assets in the event of a financial downturn, and also allows for growth potential. The company has an independent legal identity and can raise funds through shares. It is required to file annual returns and pay taxes. It must appoint directors and shareholders who will manage the day-to-day operations and make decisions. The company must have a registered office in India where it will receive all official notices and correspondence.
The registration process for a Pvt Ltd Company is relatively simple and straightforward. There are several documents that must be submitted, including a Digital Signature Certificate (DSC) for all the directors of the company and the Memorandum of Association (MoA) and Articles of Association (AoA). The MoA and AoA outline the company’s objects and internal rules and by-laws, respectively. The MoA and AoA must be signed by the subscribers to complete the application for incorporation.
There are additional registrations that a company may need, depending on its type of business. For example, a GST registration is mandatory for companies with an annual turnover of more than Rs 20 lakhs. The cost for obtaining a GST registration includes expert charges and might vary slightly between states. Another important document to obtain is an Import Export Code (IEC).
Cost
The cost of forming a Pvt Ltd Company depends on various factors, including the number of directors and members, the authorized share capital of the firm, and the professional fee involved in getting the company registered. However, it is still relatively affordable compared to other business structures in the country.
Obtaining DIN: Every director will need a Director Identification Number (DIN), which incurs a government fee of around Rs 500. Similarly, a Digital Signature Certificate (DSC) is required for online filing, and this typically costs Rs 1,000 to Rs 2,000 per certificate.
Stamp duty: Stamp duty is a mandatory fee levied on the incorporation documents, and it varies from state to state. In some cases, additional fees may be charged if the company’s share capital exceeds the specified threshold.
Other registrations: The cost of registering your company will also depend on whether it requires any other type of registration, such as GST or import/export code. These fees can be substantial and include expert charges.
Once the company has been registered, it can open a bank account and begin operations. However, there are many other factors that need to be taken into consideration when establishing your company, including location, licensing requirements, and office space. RegisterKaro offers a cost-effective service to help with the entire process, managing legal formalities and ensuring compliance with MCA regulations.
