Incorporation of Private Limited Company in India

To start the company of your dreams, you need to first get prior approval from the authorities to establish the idea of your business into a legitimate company. Having said that, the most important business organizational structure available in the country is of a Private Limited Company. An incorporation of private limted company can also be called a Registered Pvt Ltd Company or simply a Limited Company. A private limited company is the most prominent form of business entity in India. It is the preferred choice for most startups.

A Registered Pvt Ltd company is a separate legal entity in which the liabilities of its shareholders lie to only their shares and they are not responsible for the losses incurred by the company. Transferability of shares is okay in a Pvt Ltd company. But the shares cant go public.  We can transfer the shares between its member-partners. To start your business with such an organizational setup, there is a proper legal procedure for incorporating such a Private Limited company. Once you obtain the Certificate of Registration (CoR) for your Pvt Ltd Company, you can then enjoy the perks of it.

We are listing some of the benefits of a Registered Pvt Ltd company:

1. Ease in getting loans: For a firm incorporated as a private limited company, you can easily acquire loans from financial institutions because of its reputation in the market as a reliable business entity model.
2. Perpetual existence: A Registered Pvt Ltd company doesn’t dissolve in case of the death of the director or the director leaves the company.
3. Separate legal entity: A Registered Pvt Ltd company is a separate legal entity. This means in case of violation of any kind, the company can file a lawsuit against anyone.
4. Tax Relaxation: A Registered Pvt Ltd company enjoys many tax benefits as specified under the Companies Act of 2013.

Eligibility Criteria for Incorporation of a Pvt Ltd Company in India

1. Directors for the registered Pvt Ltd Company: A registered Pvt Ltd Company must have at least two directors and at utmost 15. At least one of the directors of a registered Pvt Ltd company must be an Indian national. The directors of a Pvt Ltd company must fulfill all the ‘Fit and Proper Criteria.
2. Shareholders for the registered Pvt Ltd Company: In a Pvt ltd company, the minimum number of shareholders must be 2 and the maximum number of allowed shareholders is 200. The liability of shareholders in a Pvt ltd company is limited to his/her shares. In a Pvt ltd company, you cannot trade your shares publicly.
3. Name of the registered Pvt Ltd Company: the name of a Pvt Ltd company must be unique. It must not match with any of the existing companies registered under the Registrar of Companies, MCA. To get a unique name for your Pvt Ltd company, you must consult a relevant business consultant.
4. Capital requirement for the registered Pvt Ltd Company: As per the Company Act of 2013, a minimum capital requirement of one lakh was compulsory for registering a Pvt Ltd company. But this rule has been scrapped now by an amendment to the Company Act in 2015. Now there is such a requirement of a minimum paid-up capital to register for a Pvt Ltd company. But the applicant must have an authorized capital of one lakh rupees.
5. Office of the registered Pvt Ltd Company: There is no restriction on the place of operations for a Pvt Ltd Company. The applicant can run his company from a rented home as well, as long as he has a Non-Objection Certificate from the landlord.

Also Read: One Person Company Registration in India

Documents Required for Private Limited Company Registration in India

For a Private Limited Company registration in Mumbai or Delhi or any place in the country, the application must be filled with the following documents for its successful submission:

• Self-attested copy of the PAN card of the Indian director(s) of the applicant company
• Self-attested copy of the passport of the foreign director(s) of the applicant company
• Copy of proof of identification of all the directors of the applicant company like Proof like Driving License, Passport or Voter ID, etc.
• One colored photograph of all the directors of the company
• Digital Signature Certificates (DSCs) of all the directors of the applicant company.
• Director Identification Numbers (DINs) of all the directors of the applicant company.
• Copy of the proof of residence like Bank Pass Book/Bank Statement, Telephone Landline Bill/ Mobile Bill or Electricity Bill, etc.
• For the Company proof of address
  • Scanned copy of the property or sale agreement if it is an owned property OR a bank statement, telephone or mobile bill, electricity or gas bill, etc.
  • Scanned copy of the notarized rental agreement and a NOC (No-Objection Certificate) from the landlord.

Online Private Limited Company Registration Process

The step-by-step process for the incorporation of a Private Limited Company in the country is as follows:

• Firstly, choose a unique name for your registered Pvt Ltd Company. Ensure that it doesn’t match with any of the existing ones in the Registers of the Companies.
• Secondly, reserve the proposed name of your registered Pvt Ltd company using the RUN application.
• After that, apply for the registration and obtain the Digital Signature Certificates (DSCs) and Director Identification Numbers (DINs) for the directors of the registered Pvt Ltd company.
• Then, draft the Memorandum of Association (MoA) and the Article of Association (AoA) of the registered Pvt Ltd company.
• File the online application for incorporation of the private limited company with the requisite documents and submit it online.
• After the Assessment and successful verification of the application by the Ministry of Corporate Affairs, the ministry will issue the Certificate of Registration for the Private Limited Company.

Also Read: Conversion of Sole Proprietorship into Private Limited Company in India

Register for your Private Limited Company at Registrationwala

To register a private limited company under the Ministry of Corporate Affairs (MCA) is a mammoth task. This procedure for registration is very technical and requires the assistance of seasoned legal professionals to file for its application. We at Registrationwala provide our clients with the required legal expertise to aid them in registering their Pvt Ltd Company. We provide a complete holistic end-to-end solution for the online registration of your private limited company. Our services include:

• Finding a unique name for your Pvt Ltd company.
• Registering for and obtaining DSCs and DINs for the directors of your registered Pvt Ltd company, on your behalf.
• Drafting the MOA and AOA for your  Pvt Ltd company.
• Filing and submitting the online application for company registration along with the required documents.
• Conducting follow-ups with the Ministry of Corporate Affairs and dealing with any discrepancies arising during the assessment of your application

So, do not waste any more of your time and contact us at Registrationwala and we will begin the process of registration of your private limited company today itself.