Private Limited Company REGISTRATION
A private limited company is a company privately held for small businesses. This type of business entity limits owner liability to their shareholdings, the number of shareholders to 200, and restricts shareholders from publicly trading shares. A Pvt Ltd Company Registration in India is preferred over other forms of business registrations. This ensures limited liability and provides a separate legal entity to the business. Company formation results in clear ownership of the company which is defined by the share capital of the company. The incorporation of a company is the first step in scaling your business. It paves the way for outside funding while enabling you to attract top talent by offering stock options. However, one needs to take into account mandatory audits and higher compliance which could be tough to maintain. On the other hand, higher compliance will lend better credibility to your business than any other form of incorporation of a company in India.
Types of Private Limited Companies:
Company Limited by Shares: Shareholders' liability is limited to the nominal share amount mentioned in the Memorandum of Association.
Company Limited by Guarantee: Members liability is limited to the amount of guarantee specified in the Memorandum of Association. This guarantee is invoked only during winding up.
Unlimited Companies: Members of unlimited companies have unlimited personal liability for the company's debts and liabilities. However, they are still considered a separate legal entity, and individual members cannot be sued.
As your dependable legal advisor, The Startup Trends offers a cost-efficient service for registering your company in India. We handle all legal procedures and ensure compliance with the regulations set forth by the Ministry of Corporate Affairs (MCA). Upon successful completion of the Pvt. Ltd. company registration process, we provide you with a Certificate of Incorporation (CoI), as well as PAN and TAN documents. With these in hand, you can easily establish a current bank account and commence your business operations.
Benefits of Private Limited Company Registration
1. Shield from personal liability and protects from other risks and losses
2. Secure bank credits and attract reliable investors effortlessly.
3. Greater capital contribution and greater stability
4. By registering, your business acquires a distinct legal identity from its owners
5. Offers liability protection to protect your company’s assets
6. Increases credibility, easing capital raising for growth and investment
Importance of Company Registration Certificate
A Company Registration Certificate serves as a crucial document for various reasons:
Legal Proof of Identity and Existence: The certificate proves the company's identity and existence as a separate legal entity. It includes a unique Corporate Identification Number (CIN) issued by the Ministry of Corporate Affairs (MCA), acting as the company's distinctive identifier.
Authorization to Commence Activities: The certificate confirms that the company has successfully registered with the Registrar of Companies (RoC), enabling it to initiate operations in accordance with the conditions specified in the Memorandum of Association (MOA).
Advantages of a Private Limited Company
A Private Limited Company is one of India's most popular business structures. It offers several advantages and some disadvantages, let us explain.
Limited Liability: Shareholders' responsibility is restricted to the extent of their capital contribution, safeguarding personal assets from the company's financial obligations and liabilities.
Distinct Legal Identity: A Private Limited Company possesses an independent legal identity distinct from its proprietors. It has the capacity to own assets, engage in contractual agreements, and initiate or defend legal actions under its own name.
Continuous Existence: The company's existence persists irrespective of shifts in shareholders or directors. Its existence is not contingent upon the lifespan of its associates.
Ease of Funding: Raising capital by issuing shares to investors, venture capitalists, or angel investors is easier. This structure attracts external investment.
Tax Benefits: Private Limited Companies may qualify for various tax benefits and exemptions, making them tax-efficient entities.
Credibility and Trust: Having "Pvt. Ltd." in your company name often instills more confidence and trust in customers, suppliers, and partners.
Disadvantages of a Private Limited Company
Compliance Burden: Face regulatory demands, including financial reporting, filings, and audits.
Complex Setup: Process and cost for managing are higher than more superficial structures.
Share Limits: Restricted share transfers; max 200 shareholders in India.
Public Disclosure: Financial info is publicly viewable, impacting privacy.
Exit Complexity: Selling or leaving is more complicated than with other structures.
Slower Decisions: The involvement of shareholders and directors may slow choices.
Steps for Company Registration Process in India
Registering your company as a private limited company is difficult as the procedure is complicated and involves many compliance. Do not fear as our experts can help you in every step of the private limited company registration. Instead of reading through the entire registration process, you can avail our expert advice:
Step 1: Obtain Digital Signature Certificate (DSC)
Step 2: Obtain DIN
Step 3: Name Availability*
Step 4: Form SPICe+ INC-32
Step 5: e-MOA and e-AOA
Step 6: PAN and TAN Application
Document Checklist:
For Indian Nationals: Self-attested PAN card copy, passport-sized photo, Aadhaar Card, proof of identity, and address proof.
For Foreign Nationals: Notarized documents, passport-sized photo, passport, and address proof.
Registered Office Documents: Proof of business address, copy of the rent agreement (if applicable), and owner's no objection certificate.
Post-Registration Compliance: Following incorporation, adhering to post-registration company compliances is essential to streamline company operations and define the roles and responsibilities of directors and shareholders.
Pvt. Ltd. Company Registration Fees
At The Startup Trends, we provide comprehensive services for private limited company registration in India. The registration fee for a private limited company can vary depending on factors such as authorized capital, state-specific requirements, and other incidental expenses.
To get an accurate assessment of the registration fees applicable to your specific situation and state, we recommend talk to experts. They will guide you through the registration process, provide a breakdown of the fees involved, and assist you in meeting all the necessary requirements.
What is the Time required to register a Private Limited company?
The whole process including approval of DIN, Name, and Incorporation takes around 10 working days. However, now-a-days registering a Company has become a fast process as all documents are dragged in a single application form with MCA. It is a big step towards e- governance and for businesses who are looking for expansion of operations.
Reasons to consider The Startup Trends for Private Limited Company Registration
The Startup Trends offers a completely online private limited company registration process, allowing you to register your entity without leaving the comfort of your home. Our experts can complete the entire company incorporation process within 20 days.
The Startup Trends Company Registration package includes:
DIN and DSC for Directors
Drafting of MoA & AoA
Registration fees and Stamp duty
Company incorporation certificate
Company PAN and TAN
Zero balance current account - Powered by Federal Bank
By following these steps, you can begin the process of forming your own private limited company.
More services offered by The Startup Trends
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Dedicated Relationship Manager and On-call Support
The entire New Company Registration process is managed Online
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