Starting a business is an exhilarating experience but one of the first things that you will have to do is select the appropriate business cccc structure. A Private Limited Company Registration is the most favored business structure from amongst the various legal entities in India which are favorable for startups, entrepreneurs, investors, and growing businesses.
The Private Limited Company provides you with credibility, limited liability and also makes it easier for you to raise capital. If you are launching a new venture or seeking to raise funds or expand in the future.
In this article we will cover everything there is to know about Private Limited Company Registration, Process involved, Documents required, Benefits of a Private Limited company, Compliances and how DG Associates can assist you in getting your Private Limited Company registered without hassle.
What is Private Limited Company Registration?
A Private Limited Company is a Business Entity Registered Under Companies Act 2013. It has a separate legal personality from its owners which means it can own assets, enter into contracts and exist independently.
But shareholders have limited liability, while proprietorships and partnerships do not, so their personal assets are protected from the business’s liabilities.
If you want to grow your business, get investors or develop a professional brand image, then registration as a Pvt Ltd Company is advisable.
Why Choose Private Limited Company Registration?
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- The structure that you decide to adopt for your business can have a very large effect on how your business grows in the future.
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- Some of the advantages include:
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- Limited liability for the stockholders
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- Independent legal entity
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- Increased credibility among the customers and investors
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- Easy transfer of ownership
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- Access to more capital
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- Eligibility criteria for Startup India
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- Perpetual succession.
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- Value addition to the brand
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- Ease of implementation in India
Who Should Register a Private Limited Company?
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- Private Limited Company Registration is suitable for:
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- Startups
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- IT Companies
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- E-commerce Businesses
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- Manufacturing Companies
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- Consultancy Firms
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- Marketing Agencies
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- Financial Service Providers
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- Export-Import Businesses
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- SaaS Companies
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- Growing Small Businesses
Eligibility for Private Limited Company Registration
The criteria that must be fulfilled to form a Private Limited Company in India are as follows:
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- 2 directors at least
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- 2 shareholders at least
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- One director must be an Indian resident
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- Address of Registered Office
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- Digital Signature Certificate (DSC)
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- Director Identification Number (DIN)
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- Documents Required for Company Registration
Identity Proof
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- PAN Card
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- Aadhaar Card
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- Passport (for foreign nationals)
Identity Proof
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- Driving License
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- Voter ID
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- Passport
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- Utility Bill
Registered Office Proof
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- Electricity Bill
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- Rent Agreement (if rented)
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- NOC from Property Owner
Passport Size Photographs
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- Recent photographs of directors.
Step-by-Step Process of Private Limited Company Registration
Step 1: DSC
The Digital Signature Certificate is compulsory for all the directors.
Step 2: DIN
The Director Identification Number is compulsory for all directors.
Step 3: Registration of Unique Name for the Entity
Choose a unique name for your entity according to the rules of MCA.
Step 4: Memorandum of Association and Articles of Association
Prepare the (MOA) and (AOA) , which define the company’s objectives, scope of activities, and internal management rules.
Step 5: Incorporation Application Forms
Filing of all incorporation application forms needs to be done online on the MCA website.
Step 6: Certificate of Incorporation
After getting approval, you get the certificate of incorporation with the CIN, PAN, and TAN number .
Benefits of Pvt Ltd Company Registration
Limited Liability : Shareholders are only responsible for their investment.
Separate Legal Entity : The company can own assets and sign contracts on its own.
Easy Fundraising : Investors usually prefer to invest in Private Limited Companies.
Better Brand Image : Customers and suppliers trust registered companies more than unregistered ones.
Business Continuity : The company keeps running even if directors or shareholders change.
Private Limited Company vs OPC Registration Online
Most entrepreneurs usually end up comparing registration of a Private Limited Company and OPC registration on the internet. OPC registration suits an entrepreneur running a one-man show who needs limited liability but does not require any shareholder. This registration is ideal where there are no plans of fundraising or scaling. If one is having difficulties deciding, it might be prudent to consult an expert.
Common Mistakes During Company Registration
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- Use of a Company Name Already Registered.
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- Erroneous Documents.
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- Choice of Wrong Business Operations.
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- Improper Proof of Registered Office.
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- Incorrect Details of Shareholders.
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- Non-compliance After Registration.
Compliance After Company Registration
There are certain compliance factors that need to be kept in mind after the process of incorporation is complete. These include:
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- GST registration (if any)
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- ROC filing
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- Filing income tax returns
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- Accounting/bookkeeping
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- Statutory audit
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- TDS Compliance
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- Board Meetings
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- AGM
Why Choose DG Associates?
All the required business registration and compliance services can be availed from DG Associates at one single point.
These services include:
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- Private Limited Company Registration
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- Company Registration
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- LLP Registration
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- OPC Registration Online
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- GST Registration
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- Virtual Office
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- Tax Audit
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- Internal Audit
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- Statutory Audit
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- Direct and Indirect Tax Advisory
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- Corporate Funding
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- Working Capital Assistance
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- Angel Investment Advisory
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- SME IPO Advisory
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- Government Subsidy Assistance
We will provide you with hassle-free and complacent business registration facilities provided by our highly professional group along with the full assistance and guidance.
Frequently Asked Questions (FAQs)
Q 1. How long does Private Limited Company Registration process take?
The process normally takes from 7 to 15 working days depending upon the verification of documents and approval of MCA.
Q 2. Can one person register a Private Limited Company?
No. You need at least two directors and two shareholders. If you are a solo entrepreneur, you can look into OPC Registration Online.
Q 3. Is GST Registration mandatory?
GST registration is mandatory only if your business exceeds the set turnover limit or falls into required registration categories.
Q 4. What is the minimum capital required?
Currently, there is no minimum paid-up capital requirement for Private Limited Company Registration in India.
Q 5. Can foreign nationals become shareholders?
Yes, but they must follow the relevant FEMA and FDI regulations.
Conclusion
The decision to venture into business is indeed a major milestone in any person’s life. The choice of business entity goes along way in dictating the kind of business that an organization will be in the future. A Private Limited Company is one such entity whose registration will give your organization the required legal backing as well as help establish good reputation among your clients, customers, business partners and shareholders.
Though it requires a lot of work to incorporate a Private Limited Company, the process is not as hard as most people think. With due diligence and expertise, you will be able to incorporate your business successfully and hassle free. All you need is to start right by making sure that you meet all the required requirements for business registration.
DG Associates has been involved in helping various organizations with company registration for a long time and we know the difficulties which many organizations encounter during their initial days. Our aim is to simplify the process of company registration for you. We will ensure that the whole process will be easy and fast for your organization.
