Private Limited Company Registration in India

Private Limited Company Registration is one of the most popular forms of a company for doing business in India. A private limited company is run and managed by its directors and members and is confined by the law not to offer its shares to the public.

The administrative and financial disclosures are relatively less as compared to the public limited company. Private companies can be incorporated without any minimal capital investment. It can have up to 200 shareholders provided with limited liability.

In this blog, we will be focusing on the online process of registration with fees, documents and name availability of a private ltd company.

What is the Eligibility for Private Limited Company Registration?

The minimum requirements for registration of a Private Ltd company are as follows:

• Minimum two people: There are at least two people required to start a private limited company in India. They can become shareholders and directors of the company at the same time. There is a maximum limit of 200 people who can become shareholders in the private ltd company.
• No minimum capital: The capital of the business depends on the need of the business, there is no minimum authorized and subscribed capital required for a private company.
• One Resident Indian: One person must be a resident of India on the board of directors.
• Unique name: The name of the private ltd company should be unique and shall not be similar to any existing company name.
• In case of non-availability of DIN, it must be applied for each director.
• The minimum age of the applicant is 18 years

What is the Process for Registration of a Private Limited Company?

The private limited company registration process is given in the following steps:

1. Applying for Digital Signature (DSC) and obtaining Director Identification Number for Director (DIN)

2. Application for i.e., Name reservation of the company

A Unique company name must be reserved with the RUN services under the company registration online facility provided by the MCA website.

3. SPICe+ Form-

The form is divided into two parts:

• Part- A: Name application
• Part- B: The applicant must provide company registration details in Part- B of the SPICe+ form.

Once Part A is approved, the details automatically get pre-filled in Part- B in all linked forms such as AGILE-PRO, SPICe+ MOA, SPICe+ AOA, and INC-9.

4. Mandatory Attachments for private limited company registration in India with documents required:

• Directors’ and Subscribers’ KYC documents such as Aadhar cards, PAN cards, Proof of address, passport size photo, etc.
• Director consent in form DIR-2
• Registered address proof. E.g., Rent agreement or NOC.

5. Approval

Once the Company registration is completed through the SPICe+ form, a Certificate of Incorporation is issued along with the PAN of the company.

6. Opening of Current bank account on company name

The last step for Online Company Registration in India after getting the incorporation certificate is to open a current bank account. The bank account is opened for carrying out the transaction in the company’s name.

What are the List of Documents that are Required for Private Limited Company Registration?

The Pvt ltd company registration documents are given as follows:

1. Identity proof of Directors and shareholders

• PAN card for Indian nationals
• Passport for foreigners
• Proof of nationality for foreigners
• Identity Proof, it can either Voter ID or Passport or Driving license
• Board Resolution of the company for authorization of director.
• 2 passport-size photos of all the directors

2. Address proof of Directors and shareholders

• Bank statement/Electricity bill not older than two months

3. Proof of Registered office

• Rent Agreement/Lease deed etc. along with rent receipts
• Copy of the utility bills like telephone, gas, electricity, etc. which shall not be more than two months older.
• NOC from the owner

4. Other documents

• DSC form

How is Private Limited Company Registration Beneficial?

The advantages of company registration private limited in India are as follows:

1. Limited Liability: The shareholders of private limited companies have limited liability. This means that the shareholders are liable to pay for the company’s liability only to the extent of the contribution made by them.

2. Separate legal entity: The company is responsible for the management of its assets and liabilities, debtors and creditors.

3. Raising capital: The company can raise funds from a number of investors as it gains the advantage of limited liability.

4. Perpetual succession: The company has continued or uninterrupted existence until it is legally dissolved.

5. The reservation of the name of the private limited company registration name availability through RUN services on the MCA website.

6. Tax saving: Corporate tax rates are less as compared to income tax rates. The company can choose to pay dividends to its shareholders instead of the usual salaries, as it lesser tax reductions.

6. Exit Strategy: The member can sell their ownership in an organization to investors or another company.

What are the Fees for Registration of Pvt Ltd Company?

The registration of the company through an online platform i.e., the Ministry of corporate affairs (MCA). The members starting a private ltd company can apply for

• Company name checked
• Company incorporation,
• DIN of the directors,
• PAN and
• TAN for the company.

The applicant can get these five main services simultaneously. The Private limited company registration fees in India have been waived by the Government in the year 2019. There is no minimum requirement for share capital in today’s time. The cost of incorporation is comparatively lesser after the introduction of starting a business easier in India. However, the professional fees charged for company registration in India will vary depending on the company that is being registered.

Is It Important to Register Your Business Under MSME?

The entrepreneurial culture in India is growing immensely over the past few years. To enhance the growth in India, the government has initiated various schemes and subsidies to increase the participation of individuals. The MSME registration for a private limited company is commenced when the company satisfies the eligibility criteria.

The MSME registration process for a private limited company is carried out with an Aadhar card which is compulsory for registration. The other documents required are the name, PAN number, email ID and mobile number of the applicant.

Which is the Leading Portal for Private Limited Company Registration?

Online XBRL is the leading platform for the registration of private limited companies and all types of company registration in India. Quality services are provided at affordable prices and with expert assistance in various matters related to the company formation process. You can check the website now and know more and register your company with us.

Closure Now….

The Ministry of corporate affairs (MCA) is an online platform for the incorporation of a new company in India. A company is defined as a legal entity created under the law. A new version of SPICe+ (INC-32) is introduced by the MCA. SPICe+ stands for Simplified Performa for incorporating the company electronically plus. 

The private limited company registration online has professional certification mentioning that all the information given in this form is correct. The professional includes a Chartered Accountant, Company Secretary, Cost accountant, or Advocate.