Private Limited Company Registration
- - Private Limited Company in 10 to 15 days.
- - Completely online service - No physical presence required.
- - No minimum capital requirement.
Private Limited Company
Know what is Private Limited Company? and how it is registered?
What is a Private Limited Company?
A private limited company is one of the ways to start your business in India. It is considered as best form of business which also secure your personal assets. It is most recommended form for startup in India to raise funding, ESOPs etc.
How to register Private Limited Company in India?
Private limited company registration required only 2 person to start.No minimum capital requirement is there, one can start with even Rs.5,000. Here are following three important points:
# Prepare DSC and file Name Approval: The first step is to prepare DSC and DIN. This takes sometime one to two days. Thereafter, you need to file for name approval. The first word of the name should be unique and name should end with the words “Private Limited.”
# File for Incorporation: After taking name approval, the next step is to file for incorporation via spice form INC 32. Further, PAN and TAN are not required to be filed separately and the same is allotted on company formation.
# Take GST Registration: After incorporation, access your business and take necessary registration including GST registration. This is because working without tax license is illegal in India.
Know the basics
Learn the basics about Private Limited Company & its compliance
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Advantages & Disadvantages of Private Company Registration
Disadvantages of Pvt Co. Registration
Cannot accept deposits
Yearly compliance cost
Bank finance not available before 2 years
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Yes, you can upgrade your existing business into a corporate identity. However, your business can be converted into the private limited company which is a complex procedure. You can contact our executive for further knowledge on this procedure.
Yes, you can register a company in India however; you cannot be the director in the company. You can only be the shareholder in the company. Further, you can be appointed as director only if your employment contract allows you to.
In case of your employment contract is silent, you can ask your HR department in this behalf.
The average cost of yearly maintenance of Private Limited Company is between 10,000 to 15,000 depends upon your turnover. However, in case you are zero turnover company, you average maintenance cost would be around 8000 to 10,000/-.
Yes, as per the existing provisions of law, it is possible to register company in India without even visiting to India. In this case, all the documents of the NRI or the foreign national is notarized at notary public or at Indian embassy as per the respective requirement.
Yes, a NRI or a foreign national can become the director in the private limited company, subject to the condition that out of all the directors’ atleast one director should be resident in India for more than 182 days.
Apart from one condition above, there is no other condition attached to it.
The company name selection should be done on the basis of company name structure. The Company name should start with your brand name e.g Hubco is our brand name (Trademark filed) and hence we have registered Hubco Technologies Private Limited. Likewise, in case of TATA steel limited, TATA is the brand name.
The second part of the Company name denotes its objective. Like in case of TATA Steel Limited, steel denotes its steel business. The last part of the Company name ends up with Private Limited. No company can be registered without having Private Limited or limited at the end.
The basic structure for your reference is as follows: FIRST NAME + OBJECTIVE + PRIVATE LIMITED
This could be anything, like your surname, your brand name, like TATA in case of TATA Steel Limited
Objective denotes your business activity, like steel in case of TATA Steel Limited.
A private limited Company always ends with these words and is mandatory by law.
Important Point: The new company name should not match the existing company or any existing trademark in India.
After Amendment of Companies Act 2013, the requirement of minimum capital to form a private limited company in India has vanished. Now,There is no requirement of minimum capital, as the government has done away with the requirement of having the minimum share capital. Now any person can form a company with any amount as per his choice.
Shareholders are the person who holds the shares of the company and are considered as the ultimate owner of the company. The more the number of shares you hold, the more you have control over the business.
Directors, on the other hand, are the employees of the company who runs the company on behalf of the shareholders. Directors and Shareholders can be common person too.
The minimum requirement to start a private limited company is two person which can be increased to a maximum of 200 people. Further, in case you are a sole person and wants to start a private limited company, then you can choose to register a One Person Company (OPC). OPC is a type of private limited company which can be formed with only one director/shareholder/member.
Startup are the innovative category of business man who wants to grow very fast within a short span of time like the previous startups did like Flipkart, Ola, PayTM, etc. They could only become so big because they were able to raise the capital in a timely manner.
Private Limited company is the ideal form which supports funding requirement of the business with a corporate identity. Hence, in case you have plans to raise funding and wants an organised and best form of business, choose Private Limited Company in India.
Once the private limited company is formed, there are various documents which are required for bank account opening. The lists of documents required for opening the bank account are as follows:
- Certificate of Incorporation
- PAN Card Acknowledgement
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Board Resolution as per the format is given by Bank
- Bank Account opening form as per respective bank.
Incorporation is another word for Private Company registration in India. The word incorporation is generally used in connection with company registration in India.
Registrar of Companies (ROC) is the government post who takes care about the company’s record within its jurisdiction. The ROC and regional offices are formed under Companies Act, 2013 and rules made thereunder.
To verify any company registration number, which is commonly known as CIN number, can be verified from the Ministry of Corporate Affairs (MCA) website, i.e. mca.gov.in. The MCA keeps all the record of all the companies registered companies in India.
Private Limited Company is the superior form of business than Sole proprietorship in India and offers various advantages over the sole proprietorship form of business in India. Let us see the basic difference:
Private Limited Company
A Single person can start proprietorship.
Two person are required to start, however in case of single person, he may choose to register one person Company (OPC).
There is no legal registration of proprietorship, it is registered based on local license like VAT, Service Tax etc.
It is a organized form of business and registered under Companies Act, 2013 having worldwide recognition.
New Customers and suppliers generally do not trust your brand easily.
Since, it is registered form of business, offers more trust to the customers/suppliers etc.
Personal assets are not safe.
Personal assets are safe, except in case of fraud.
Practically, there is no term like Startup Company. Private Limited Company is popularly known as Startup Company in India because it is the only form of business which can raise funding from the investors and can also be registered under startup India scheme initiated by PM Narendra Modi (NAMO).
The Procedure to register a startup company is similar to the Private Limited Company registration where the minimum of two people can start a company with no minimum capital amount.
Practically, a private Limited Company is the second name of starting up a business in India. It is the most organized form of business to start with. It helps you to set the tone of the business from the beginning and in case you have a good traction, you can even go for funding like other companies did (flipkart, Ola, PAYTM etc).
Further, there were many other companies also there like housing.com, freshdesk etc.
Like every coin has two sides, there are disadvantages associated with Private Limited Company registration. Few of the disadvantages of private company registration are as follows:
- It increases your yearly compliance cost, as Audit of private Limited Company is mandatory even in case of zero turnover.
- Doing business under Private Limited Company is not flexible, as there are too many regulations to comply with.
There is always a risk of high penalties in case you do not comply with the Companies Act, 2013.
Private Limited Company Registration is the first step to start your business in India. It provides you basic identity and basic documentation based upon that you can do multiple activities like an opening bank account, taking space on lease, etc. Here are some major advantages of Private Limited Company Registration:
- It helps you to raise funding from the Venture Capitals, Angel investors, High net worth individuals, etc.
- It protects your personal assets by limiting your liability.
- It provides separate legal entity status
It takes around 10 to 15 days to register company if all the documents are provided on time. 10 to 15 days is an average time taken to complete all the formalities. It takes so much time because company registration is subject to government approval.