Private Limited Company

Private Limited Company RegistrationA Company is an association of persons who share common goals. Moreover the owners of the company pool their resources in order to achieve their common goals. A private limited company is a closely held company with restriction to issue shares to public. Thus that it cannot go for an IPO or list their shares on stock exchange for public trading of their shares. Private Limited Company Registration in India is regulated by the Companies Act, 2013 and administered by the Ministry of Corporate Affairs.Advantages of Private Limited Company RegistrationThe separate legal entity provides immunity to the owner’s personal property or assets in case of bankruptcy.The freedom to easily add or remove members in the company comes with the perpetual succession. There won’t be any harm to the company’s existence.Investors are willing to invest in a private limited company.Registration of a private limited company requires a minimum of just 2 members.Banks easily sanction loans to private limited companies.Private Limited Company is your best option, if you want to expand your company and take it on a global level. Private limited companies and limited companies are the only types of companies that allow 100% Foreign Direct Investment in the international market.The Directors are also usually the main shareholders of the Company. Hence both the ownership and control of the business remain in their hands.The scope of capital expansion as a maximum number of shareholders allowed is 50.Employee stock option program (ESOP) is a source of extra motivation beyond salary. As a result, employees will also have vested interest in the success of the company.Documents Required for Private Limited Company RegistrationCopy of PAN Card of directorsPassport size photograph of directorsCopy of Aadhaar Card/ Voter identity card of directorsCopy of Rent agreement (If rented property)Electricity/ Water bill (Business Place)Copy of Property papers(If owned property)Landlord NOC (Format will be provided)Steps for Private Limited Company RegistrationStep 1: Acquire Digital Signature (DSC)The Private Limited company registration procedure is completely online and hence it requires digital signature to incorporate a private limited company. It is mandatory for subscribers and directors to have a valid DSC ( Class II or III). You can get a DSC from us in just one day. It is already included in our package. If directors already have DSC this step can be skipped.Step 2: Apply for DIN (Director Identification Number)Anyone who wants to be a director in a company has to apply for DIN if he doesn’t have one already. One DIN can be used to become a director in any number of companies. It can be obtained either by filing DIR-3 or directly through SPICe at the time of incorporation.Step 3: Apply for Name ApprovalNames can be submitted for approval through Name Approval form or together with SPICe (INC-32) at the time of incorporation. If Name is not approved in first chance then you can file for resubmission or file SPICe form again. This whole process takes 2-3 days. Please note that DSC and DIN shall not berequired for filling of Name Approval form for reservation of name. Only MCA Account is mandatory.Step 4: Form SPICe (INC-32)Complete the application in INC-32 after getting it digitally attested from a Chartered Account or a com-pany Secretary or an Advocate in practise.Step 5: e-MoA(INC-33) and e-AoA (INC-34)Before introduction of SPICe these forms were required to filed physically but now they can be filed online at MCA portal along with SPICe ( INC-32). These forms must be digitally signed by subscriber to MOA and AOA. If all the details are duly filled and all the requisite documents are attached the registrar will issue a certificate of Incorporation and CIN (Corporate Identity Number) will be allotted to the company.Step 6: PAN and TAN ApplicationOnce you receive the certificate of Incorporation apply for PAN and TAN as they would be required for opening a bank account. You can also apply for the same along with INC-32 at the time of incorporation.