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Updated on 22-Nov-2019 07:20 AM GMT | 4 min read
Private Limited Company Registration in India
Want to register your private limited company?
Not finding the appropriate service provider?
Finacbooks offers you best services and the most popular ways by which you can easily set up your business in India. In addition to it, you will also get to learn about all the tax and regulatory advantages in relation to private limited company.
We help you register in three simple steps:
- Firstly, we register the Directors of the company with the Ministry of Corporate Affairs (MCA)
- Secondly, we help you in choosing the most appropriate company name
- Lastly, we help you in drafting your company’s constitution. (Memorandum of association & articles of association)
A Private Limited Company (PLC) is considered as the most common and accepted corporate legal entity in India. The registration of a Private Limited Company is governed by the Companies Act, 2013 and Companies Incorporation Rules, 2014. No less than two shareholders and two directors are required to register a Private Limited Company. A natural person can be a director and shareholder both, while a company legal entity can only be a shareholder.
If we take the current scenario, Start-ups and small businesses are increasingly choosing Private Limited Companies for doing businesses as it becomes easy for them to raise the funds from outside and at the same time it also limits the liabilities of its shareholders. It enables owners to provide employees with the option to own shares while reserves the right to hire and retain the best talent. Foreign nationals, foreign corporate entities or even NRIs can be Directors as well as Shareholders of a Private Limited Company via Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.
A Private Limited Company has many unique features that make it an ideal business for countless small and medium sized businesses that are professionally managed or family owned. Some of the unique features of a Private Limited Company are as follows –
- Limited liability protection to shareholders,
- Separate legal entity status
- Ability to raise funds
- Perpetual existence.
Let us take a look at few immediate advantages of a Private Limited Company:
- Greater freedom with limited liability
- Increased capital contribution and greater stability
- The prospects for future business scalability
What Is Included In Our Package?
Procedure for Private Limited Company Registration
You have to fill up our easy-to-use business registration form and submit the required documents to register your business.
After issuing your documents, we provide you with Designated Partner Identification Number and a Digital Signature Certificate.
Your all details will be verified. Subsequently we move ahead with the name approval.
All the essential papers are created by us and then filed with ROC on your behalf.
When your organization is registered, we hand over all the files and DSCs.
Documents Required for Pvt Ltd Company Registration in India
Identity and Address Proof:
For the Indian nationals, it is necessary to submit identity proof and address proof of all the shareholders and directors. Permanent Account Number (PAN) card copy of all the directors is also a mandatory requirement for company registration.
If you are submitting bank statements or electricity bills as a proof of address, it should not be less than 2 months old at the time of submission.
For foreign nationals, Submission of apostilled or notarized (attested to/by a notary) copy of your passport is a mandatory requirement. In case the document is in foreign language, it should be translated into English and notarized or apostilled. The address proof submitted by the director should have his name mentioned in the passport with the current address. The document submitted by a foreign national as an identity or address proof should not be older than 1 year.
Registered Office Proof:
- The registered document containing the name of the company and its address of the registered office. Or
- Notarized copy of lease/Rent agreement in the name of the company plus rent paid receipt copy not older than 1 month.
- If it is rented, the NOC from the landlord is required.
- Proof of utility bills such as Telephone, electricity, gas, water showing the address of the premises in the name of owner.
Identity proof of Directors and Shareholder
PAN for Indian Nationals Notarised Passport Copy for Foreign Nationals
Proof of Registered Office in India
Rental Agreement or Sale Deed / Copy of electricity Bill or Electricity Bill NOC letter from Landlord for Use of
Address Proof of Directors and Shareholders
Passport, Drivers Licence, Aadhar card and Bank Statement
Signed Incorporation Documents
Signed Digital Signature Application Documents in Hard Copy Other Incorporation Documents Signed and Uploaded
Advantages of a Private Limited Company
Separate Legal Entity
A Private Limited Company is a legal entity and a juristic individual established under the Companies Act. Thus, a company has a range of legal capacities, such as opening of a bank account, hiring of employees, taking on equity, obtaining licenses and much more. The members (Shareholders/Directors) of an enterprise have no personal liability towards the creditors of the enterprise for company's debts.
A Private limited company has an advantage of perpetual succession. It means that it has an uninterrupted existence until it is legally dissolved. A company is a distinct legal entity and is unaffected by the departure or the death of any of its Directors or shareholders. It continues to exist regardless of any changes in the ownership.
The ownership of a business can easily be transferred to a company by transferring shares. The signing, transfer and filing of the share transfer form along with the share certificates are sufficient documents for transferring the ownership of a company. In a private limited company, the consent of other shareholders may be required for the transfer of shares.
Private limited company has the ability to raise funds in India. With the RBI permission, a company can issue equity shares, preference shares, debentures and accept deposits too. Banks and financial institutions are more willing to provide funds to a company rather than partnership firms or proprietary firms.
A private limited company is an artificial person who can acquire, own and also isolate property in its name. The property owned could be machinery, building, factory, residential property, land, intangible assets etc. No shareholder can claim the property of a company as long as the business is a going concern.
Registering a Private Limited Company is an Easy 3 Step Process
Obtaining DSC & DPIN
A Digital Signature Certificate (DSC) and a Designated Partner Identification Number (DPIN) both are necessary for the proposed Directors of the Private Limited Company. DSC and DPIN can be obtained within five to seven working days for the proposed directors.
A minimum of one and a maximum of six suggested company names must be submitted to the MCA. Subject to availability, naming standards as well as the MCA processing period, name approval can be obtained in 5 to 7 working days.
Registration documents along with an application for registration can be submitted to MCA. Subject to the application processing time, MCA will usually approve the application of company registration in 5 to 7 working days.
Minimum Requirements for Private Limited Company Registration
Concerns Related to a Private Limited Company
Things to be considered while Choosing a Name for your Private Limited Company
Selecting the name of the business is an important aspect. It is the very first impression for the vendors, the stakeholders and the buyers. Therefore, it needs to be in relation of the nature of the business. It must be relevant and attractive. Here are some of the following aspects which we should keep in mind while naming the business -
How Finacbooks help in Private Limited Company Registration?
Finacbooks is a leading Indian portal providing accounting, finance & taxation services to small businesses. We are having more than 10 years of experience in helping individuals providing Private Limited Company registration at a least possible price. We will guide you through the entire process of Pvt Ltd Company registration. To avail the best deals on Private Limited company registration, kindly call us at 8800221252 or you can also e-mail us at firstname.lastname@example.org
Pvt Ltd Company Registration FAQs
The Registrar of Companies (ROC) expects that India should follow few naming guidelines. The more closely the guidelines are followed, the greater the chances of your name approval. Few guidelines for name approval are as follows -
Blacklist: Generic names, adjectives and abbreviations will be rejected. For ex- Abbreviations like ABP or CNN will be rejected. The terms like bank, exchange, stock exchange will also be rejected unless it is authorized by SEBI or RBI.
No Common Trademark: Trademark should not be common. The registered trademark should not be similar to any other trademark displayed on the Intellectual property website of India. If found similar, you will get the name approval only when you get an NOC Objection Certificate (NOC) from its owner - authorizing you to make use of it.
Descriptive Component: The company name should convey the details about your business you are doing or you want to do. For ex - In Eli Research Private Limited, the word' Research' conveys that the company is into a research business. If your business is different, you cannot use the word “Research” in your business name as it will surely get rejected.
- If the company have no security interest in its assets at the time of application.
- When there are no partners of the LLP and the shareholders of the company are the only partners.