Private Limited Company Registration in India
Setting up a business in India often involves choosing a private limited company as a preferred option. This structure offers shareholders limited liability protection while placing specific ownership constraints. In contrast, in the case of an LLP, partners oversee the management.
Private limited company registration allows for a clear distinction between directors and shareholders.
What is a private limited company?
n India, a private limited company is a privately held entity with limited liability, and it ranks among the nation's most favored business structures.
Requirements for Registering a Company in India:
A minimum of two directors and 200 members are required for Private Limited Company Registration in India, as per the Companies Act of 2013.
When selecting a name for a private limited company registration in India, two factors must be considered: The name should reflect the principal activity of the business.
After the company registration process, the company must provide the permanent address of its registered office to the company registrar. Business operations occur in this office, and all relevant company documentation is maintained.
Types of Private Limited Companies:
Procedure for Company Registration
Registering a company in India involves a straightforward four-step company registration process:
Step 1: Acquire a Digital Signature Certificate (DSC)
Every director and shareholder must secure a Digital Signature Certificate (DSC) issued by the Controller of Certification Agencies (CCA).
Step 2: Director Identification Number (DIN)
Obtain a Director Identification Number (DIN) if you intend to be a director in the company. DIN is essential for directors and needs to be provided in the registration form.
Step 3: Name Reservation for the Company (SPICe+ Part A)
Begin by completing the SPICe+ Part A form to secure a unique company name.
Step 4: Submission of Company Details (SPICe+ Part B)
Provide comprehensive information concerning capital, registered office address, subscriber and directors' details, stamp duty, PAN and TAN application, and necessary attachments.
Step 5: Preparation and Submission of Incorporation Forms (SPICe+ MOA and AOA)
Draft the Memorandum of Association (MOA) and Articles of Association (AOA) containing crucial company details. Obtain digital signatures from subscribers and professionals before submitting these documents to the MCA for approval.
Step 6: Certificate of Incorporation
Upon successful document verification, the MCA will issue the Certificate of Incorporation (COI) with the Company Identification Number (CIN), PAN, and TAN.
Documents Required
The following documents are required for Registering a Company in India:
- Self-attested PAN card copy
- Passport-sized photo
- Aadhaar Card
- Proof of identity
- Address proof
- Distinct Legal Identity:
- Limited Liability:
- Continuous Existence:
- Compliance Burden:
- Complex Setup:
- Share Limits:
Advantages
A Private Limited Company possesses an independent legal identity distinct from its proprietors.
Shareholders' responsibility is restricted to the extent of their capital contribution, safeguarding personal assets from the company's financial obligations and liabilities.
The company's existence persists irrespective of shifts in shareholders or directors
Disadvantages
Face regulatory demands, including financial reporting, filings, and audits.
Process and cost for managing are higher than more superficial structures.
Restricted share transfers; max 200 shareholders in India.
Streamline Partnership Firm Registration with Kritika Gupta and Associates
Kritika Gupta and Associates specializes in Private limited Company Registration services in India, providing comprehensive guidance and support throughout the registration process.
Compiling the necessary documentation for company registration in India can be overwhelming, but our experts will handle this task efficiently.
We will guide you in assembling all required documents, ensuring accuracy and compliance. We'll conduct a name availability search and facilitate the reservation of your chosen name, reflecting your business identity.