Private Limited Company Registration In India - An Overview
Private Limited Company registration or incorporation is the subject of involving a legal process that should be handled by a professional tax consultant. As per the Indian Act, a Private Limited Company has a separate legal identity from its owners. A private limited company has no right to raise capital from the public or issue shares for public subscription.
The registration of a Private Limited Company is complicated compared to a proprietorship and partnership firm. TAX SEVA KENDRA offers online incorporation service of Private Limited Company for Indian citizens at a much affordable price.
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Private Limited Company Registration Package
- What we provide
- Documents required
- Certificate of Incorporation (CIN)
- Permanent Account Number (PAN)
- Memorandum of Association (eMOA)
- Articles of Association (eAOA)
- Director’s Identification Number (DIN No)
- Digital Signature (DSC)
- GST Registration
- Required two names of the Company
- Companies Object
- Office Address Proof (Rent Agreement, Receipt, Electrical Bill, Owner Property tax)
- Director's PAN, Aadhar, Voter Card
- Director's Electrical Bill
- Director's Driving Licence or Passport (If any)
- Director's Last 6 months Bank statement
- Director's Photo
- Director's Email and Mobile
The basic requirements to register a private limited company are
- 1) The Number of members required is between 2 to 200.
- 2) Two directors and two shareholders are a must.
- 3) Copies of PAN cards of the directors and shareholders while Passports for NRI subscribers are mandatory.
Without the proper documentation, a Private limited company registration will not be executed in MCA. The documents that are needed to get a private limited company registered are-
- 1. Address Proof of the Director: Need Voter ID Card/Aadhaar Card/Driving Licence etc of the director for new Pvt Ltd company registration.
- 2. PAN Card of the Director: Need Permanent Account Number (PAN) of the Director as identity proof for registration.
- 3. Residential Proof of the Director: Need Eclectic Bill/ Voter ID Card/Aadhaar Card etc as a residential proof for the director.
- 4. Registered Office Proof: Need Electric bill/Bank Statement/Telephone Bill and in case of the premises is with rent, then rent agreement along with receipt copy of the latest rent bill. In addition, a NOC (No Objection Certificate) from the landlord like Electricity Bill/ Telephone Bill/ Water Bill etc that contains the name of the landlord should be submitted.
As per the law of India, every nature of a company has some significant advantages which are helpful to the owner to execute the company smoothly. In case your desire is private limited company incorporation in India, read the notable benefits that you can enjoy after the private limited company registration.
Apart from the capital invested by the members at the start of the business nothing will be lost by the shareholders and the personal assets of the members will remain safe in case of the closure of the company.
Raise Equity Fund:
As per law in India, a Private limited company has a right to raise equity funds. With the permission of RBI, a private limited company can issue preference shares, equity shares and debentures. To providing loan private limited company is always the first choice in the bank or financial institutions.
Separate Legal Entity
As per Indian law, a Private limited company has a distinct and separate entity from its directors and shareholders. A private limited company has a right to enter into any contract and buy or sell the property. A private limited company is a juristic person, and any circumstances will not affect the existence of the company.
In a Private limited company, ownership can be changed by transferring the shares into another name. The transferor can simply file and sign the share transfer form and hand it over to the buyer of shares along with share certificates. And in a few cases, the consent of other shareholders will be required for changing ownership.
Private limited companies have the privilege of borrowing funds from any kinds of sources like banks, financial institutions etc.
Greater Credibility: A Private limited company has more credibility and transparency as every detail of the company submitted comes into the public domain. With this, the employees of the company feel safe and comfortable in the company they are working for.
The business of the company doesn’t get hampered in case the company is sold, amalgamated or is transferred to other individuals.
International Expansion: There is no need for any government approval for any international companies that wish to make investments in Indian companies.
Scope of Multiple Opportunities:
Owners of Private Limited Companies can avail any kind of opportunities that are prevailing in the market.
As the registration of the companies is regulated by the Companies Act 2013, the Private Limited Companies are required to comply with the rules and regulations of this act. Further, any kind of controversy that might occur can be easily sorted out.
As per the law, all the companies registered in India need to maintain some compliance for running the business in India. Failure of such compliances can cause penalties and disqualification of the directors.
So, you need to select a professional and responsible consultant in your city, who can guide you about the rules and regulations of compliances to be maintained for private limited companies.
Here are some vital compliances to be maintained for the private limited company in India are-
Commencement of Business Certificate:
The companies registered in and after 2019 must obtain a commencement of business certificate within 180 days of the functioning of the company. Failing which a fine of Rs 50,000 for the company and Rs 1000 for the directors per day will be imposed as penalties.
Appointment of Auditor: Auditors need to be appointed within 30 days for the incorporation of the company. Failing which the company won’t be allowed to run its business and also there will be a fine of Rs 300 per month for the company.
Income Tax Return:
The income Tax return needs to be filed each year in Form ITR-9 on or before the due date for the financial year.
MCA form AOC-4:
Every private limited company registered in India need to file a Balance Sheet along with Profit & Loss and Director's report with AOC-4 with 30 days of holding of AGM (Annual General Meeting). Failing which a fine of Rs 200 per day will be levied to the company.
MCA form MGT-7:
Every private limited company registered in India need to file its Annual Return with MGT-7 within 60 days of holding of AGM. Failing which a fine of Rs 200 per day will be levied to the company.
DIN eKYC:Each director needs to furnish a DIN eKYC or DIR eKYC in which the personal mobile number and email ID needs to be mentioned. Otherwise, a fine of Rs 5000 will be imposed.
Holding Annual General Meeting:
Every registered company must hold an Annual General Meeting or the AGM. The date of holding the AGM will be 180 days from the closure of the financial year.
Directors are required to prepare a report with all the info under section 134.
As per the Companies Act,2013 time- frame for registering a Pvt Ltd company in India is varies between 7-14 working days. The process will be as follows-
|Digital Signature Certificate (DSC)||: 2 Days|
|Director Identification Number (DIN)||: 1 Day|
|Name Approval||: 3 Days|
|Company Registration||: 5 Days|
|Estimated Total Time Range||11 Days|
In India, generally cost of registering a Pvt Ltd company is under the range Rs.8000-14000/-. The details of cost will be incurred by the following head-
|Digital Signature Certificate (DSC)||: 2000/-|
|Director Identification Number (DIN)||: 1000/-|
|Professional Fees||: 3799/-|
|Stamp Duty||: 2500/-|
|Notary Fees||: 500/-|
|Govt. Fees (PAN, TAN, RUN)||: 1200/-|
|Consultancy Fees||: 8000/-|
The registration of a Private Limited Company is complicated compared to a proprietorship and partnership firm. Tax Seva Kendra offers an online incorporation service of a Private Limited Company for Indian citizens at a much affordable price. Choose a plan according to the nature of your business.
|Features||Private Limited Company||Limited Liability Partnership||One Person Company|
|Minimum member required||Minimum 2 members is required to form a private limited company.||Minimum 2 members is required to form a limited liability partnership.||Minimum 1 person is required to form a one person company.|
|Nature||Owners having potential of high turnover in business and scope of external source of funding can incorporate a Private Limited company in India.||Owners having low investment profile and service-oriented business can form Limited Liability Partnership in India.||Owners who want limited liability and full control over the business can register business in India as OPC.|
|Regulatory Authority||Private Limited Company is regulating by MCA under the Companies Act,2013.||Limited Liability is regulating by MCA under the Companies Act,2008.||OPC is also regulating by MCA under the Companies Act,2013.|
|Liability of the Members||Here liability of the members is limited to the percentage of share capital in the business. Personal assets of the members are not considering as business assets.||Liability of the partners is limited to the extend of their percentage of share capital.||Only owner have the limited liability as per capital invested.|
|Scope of Foreign Investment||Under private limited company 100% FDI (Foreign Direct Investment) is allowed as per law.||LLP is also allowed for FDI (Foreign Direct Investment) is allowed as per law.||OPC is not allowed for FDI (Foreign Direct Investment) is allowed as per law.|
|Ownership Changing||Ownership/share transfer is eligible under private limited company.||Ownership/share transfer is eligible under limited liability partnership.||Ownership/share transfer is eligible under private limited company.|
|Taxation Applicability||Flat 30 % plus surcharge is applicable for private limited company.||Flat 30 % plus surcharge is applicable for limited liability partnership.||Flat 30 % plus surcharge is applicable for one person company.|
What is private limited company registration in India?
Private limited company registration is the act of holding a company privately by two or more people in India as per law. Here liability of the owner is limited and the personal assets of the owner are not considered as part of business liability.
Who can register Pvt Ltd?
Two people can together form or incorporate a private limited company in India. One person will act as Director and another person will be in the role of Shareholders. Except the rules and regulations of MCA need to follow and maintain.
Can a single person start a Pvt Ltd company?
No, as per the company Act,2013 minimum of 2 persons is required to form a Pvt. Ltd. Company in India. Only OPC (One Person Company) can be formed by a single person in India.
How much is Pvt Ltd turnover?
There is no minimum turnover applicability for private limited companies. In case you are holding a OPC (One Person Company) and your turnover is exceeding Rs.2 crore or the Paid-up capital is crossed Rs.50 Lakh, OPC must be converted into Perivale Limited.
How many employees is required to run a Pvt Ltd Company?
Minimum one employee is required whose profile is to provide service to the company in exchange of salary/wages/compensation.
How much does it cost to register a private limited company in India?
Cost is differed as per with consultant. Generally, in India cost is range between Rs8000/- to Rs.14000/-.
Does physically presence is required during the process?
Not necessary, we will do everything on behalf of you.
Does any foreign individual be a shareholders or director in any Private limited Company in India?
Yes, any foreign individual or NRI will be a director and shareholder of any private limited company. There is no government restriction about it but at least one director of the board must be resident in India.
Does any stamp duty is required to pay during incorporation process?
Yes, stamp duty is required to pay in the registered office during the incorporation process. The stamp duty is imposed by the State Government and applicable on AOA, MOA, Form INC 32.
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