Are you planning to start a business and wondering what legal structure to choose? Private Limited Company Registration might be the best option for you. Registering your company as a Private Limited Company provides various benefits such as limited liability, ease of raising funds, and tax advantages. To Register Your Private Limited Company Chat with our Startup Experts.
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Documents of Promoters play an important role in company registration process. Primary documents of all shareholders and directors such as self attested copy of PAN Card, Aadhar card and address proof are summitted along with Registered office Proof like Electricity bill or telephone bill or Mobile Bill or Gas Bill and NOC from owner of premised would need to get filed.
Another important thing in company registration process is selection of name. The name of every Company should be unique and must not violate the name of any other company or someone else trademark.
Name Allocation is decision of ROC . If you think that your name is not unique then its always advisable to file Name Reservation RUN Form
For Registration of a Company, all the applications to ROC are filed in digital format signed by its proposed director. The filing process for Company Registration starts with the issue of a DSC for the shareholder and director of the Company. When our team will prepare DSC, they will call you for OTP and will ask you to complete your video verification. Issuance of DSC is complelty online process.
After the name’s approval, the spice plus form is submitted to the ROC for the issue of the certificate of incorporation of the Company. The promoters documents, proof of registered address, MOA & AOA are the mandatory attachments of the Spice Plus Form. The entire company registration process is online, and the application is filed with the digital signature of Directors and Company Secretory or Chartered Accountant
After verification of Filed SPICE+ Form ROC will approve it within 2-3 working day and will issue COI (Certificate of Incorporation), PAN Card and TAN Number and other companies relevant documents.
Once a company is registered, there are some mandatory compliances to be followed. This is vital to avoid any penalty or punishment.
Private Limited Company registration offers several benefits that make it a popular choice among entrepreneurs and investors. Some of the key benefits of Private Limited Company registration are:
The liability of the shareholders is limited to the amount of their investment in the company. In case of any legal or financial issues, the personal assets of the shareholders are not at risk.
A Private Limited Company is a separate legal entity that can own assets, enter into contracts, and sue or be sued in its own name. This gives the company more credibility and enhances its business opportunities.
A Private Limited Company has perpetual existence, which means it continues to exist even if the directors or shareholders change. This ensures continuity and stability in the business operations.
Private Limited Companies have the advantage of raising funds through equity, debt, or other financial instruments. They can also approach investors and venture capitalists for funding
Private Limited Companies are eligible for various tax benefits and exemptions under startup India, which can help reduce the tax liability of the company.
A Private Limited Company is considered to be more credible and trustworthy than other business entities. This helps in building a strong brand and reputation in the market.
The income tax for companies ranges from 15% to 30%, depending on the case. There are two categories of companies as mentioned below.
A. Newly Incorporated Company: A company incorporated on or after 1st October 2019, and that does not claim any other concession, deduction, exemption under the income tax act, the tax rate is as under
Particulars | Manufacturing Company | Other Company |
|---|---|---|
Tax Rate | 15% | 22% |
Surcharge | 10% on tax | 10% on tax |
Cess | 4% on tax & cess | 4% on tax & cess |
Effective Rate | 17.16% | 25.168% |
B. For other companies: the income tax rate is 25% in case the turnover is less than 400 Crores and 30% in all cases where the turnover is more than 400 Crores. The Surcharge and education cess at applicable rate is charged in addition to the basic income tax rate.
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After the incorporation of a Private Limited Company in India, there are various post-incorporation compliance requirements that the company needs to fulfill. Some of the key post-incorporation compliance requirements for a Private Limited Company in India are:
Failure to comply with these post-incorporation compliance requirements can result in penalties, fines, or legal consequences. Therefore, it is essential for a Private Limited Company to ensure timely compliance with all the post-incorporation compliance requirements LEARN MORE »
Features | Private Limited Company | OPC | LLP | Partnership | Sole Proprietorship |
|---|---|---|---|---|---|
Applicable Law | Company Act 2013 | Company Act 2013 | LLP Act 2009 | Partnership Act 1932 | No Law |
Number of members | 2 - 200 | 1 | 2 - Unlimited | 2 - 20 | 1 |
Number of Directors /DP | 2 - 15 | 1-15 | 2 - Unlimited | 1-20 | 1 |
Formation | Through ROC | Through ROC | Through ROC | Through Agreement | Easy |
Tax Benefits | The income tax rate for companies vary from 15 % to 22% | The income tax rate for companies vary from 15 % to 22% | LLP Income Tax Rate is 30% on its profits | Partnership firms are taxed at 30% on its profits | For a small business with low turnover, there is the benefit of individual tax slabs. |
Statutory Compliance | High | High | Low | Low | Minimum |
Foreign Investment (FDI) | FDI in case of a Private Limited Company is available under the automatic route. | FDI is not allowed in One Person Company | FDI in LLP Is permitted at par with the companies | FDI not Allowed | FDI not Allowed |
Separate Legal Entity | A Company is a separate legal entity separate from its promoters | An OPC is a separate legal entity separate from its promoters | An LLP is a separate legal entity separate from its promoters | A Partnership is a legal entity but not different from partners | The proprietor and the proprietorship business is the same thing |
Limited Liability | Liability Limited - Shareholders of a Company are bound to pay only up to the capital they have subscribed to the company. | Liability Limited - In OPC, unlike a proprietorship, the shareholder cannot be asked to pay beyond his subscribed capital | Liability Limited - The partners of an LLP can be called upon to pay only up to the amount of capital they subscribed to. | Liability Not Limited - There is no protection of limited liability, even the personal properties of partners are at risk for losses of business | Liability Not Limited - The proprietor is the whole sole of the business, and his liability to the debts or losses of proprietorship is unlimited. |
Ownership Transferability | The shareholding of a Pvt Ltd Company is easily transferable | OPC Shares can be transferred to new shareholder along with the nominee | In LLP contribution/share of a partner can be transferred with the consent of all other partners. | Not Possible, every admission or removal of a partner amounts to the new firm. | Not Applicable |
Perpetual Existence | A Company exists beyond the life of its owners /shareholders. After the death, the shares transmits to legal heirs | OPC Continues to exist even after the death of its only shareholder, as it passes to the nominee. | The LLP also have perpetual existence and exists beyond the life of the designated partner | No perpetual existence, with the death of a partner, the partnership ends. | No perpetual existence, with the death of the proprietor, it ends. |
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Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company registration is governed by the Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required.
The prerequisites for the incorporation of a private limited company are that: The number of members must be between 2-200. There must be at least two directors and two shareholders.
Yes, the application for registration of the company is digitally filed to the Ministry of Corporate Affairs at MCA Portal, the Pvt ltd company registration fee is also payable online to the ROC. The memorandum and articles of the company are filed in digital format as an attachment to the Spice Form for registration of a private limited company in India. After the registration of the company, Pan card is allotted by the income tax department. Hence we can say yes to 100% online process of company registration.
Not at all. The incorporation of the company is an online process. The documentation and the filing process with the ROC can be done in an online environment. Hence there is no need for a physical visit to our offices
Hiring a personal CA or CS may be costlier for a startup. Considering this difficulty, we offer an alternative to you to get the company registered from us on an online professional service platform.
Yes, a company can carry multiple business activities if it is mentioned in the company’s MoA and approved by the ROC. Please note that more than one business activities can be mentioned in the main object of the MOA provided they are related in nature. Completely unrelated business can’t be done in the same company; for example, construction and healthcare shall not be allowed to be carried in the one and same company.
The name approval concerning a Company Registration means the process through which the registrar of companies approves a particular name for the proposed Company in compliance with the law. To seek the name approval, the promoter of the Company has to apply the RUN form at the website of the MCA. The government fee for seeking name reservation/approval is Rs 1000 in case of Company and Rs 200 for the LLP.
The name of a Private Limited Company always ends with two words “Private Limited”. The first part of your name should consist of a coined term, and the middle part should reflect the main business activity that the proposed Company is planning to take up.
Yes, for a company, the minimum number of directors prescribed is 2, and the maximum is 15. In case you are the sole owner you should consider incorporating a One Person Company or Proprietorship Firm.
Yes, there is no restriction under the companies act that restrict a person’s ability to become a director in a company if he is a salaried employee somewhere else. However, you should check your appointment documents for any restriction that may have been imposed by your employer.
Yes, the foreign nationals of a non-resident Indian can b=very well become a director in the company. However, out of all the directors of the company, one director must be a resident in India.
No, there is no educational qualification or experience required. The only requirement is that the person should be capable of agreeing.
Company incorporation certificate is provided as a pdf document by the Ministry of Corporate Affairs (MCA). MCA only provides a soft copy of the incorporation certificate.
India being a signatory of WTO, have a similar regulatory framework for the protection of the trademark in India. The first step to protect the Brand, Logo, Trademark, etc.; is to apply for trademark registration. Click here laws and regulations relating to the protection of brands to learn more.
If you have all the documents in order, it will take no longer than 7 days. However, this is dependent on the workload of the registrar.
Not only the private limited companies receive great financial assistance from banks and financial institutions but also enjoy the advantage of borrowing funds. A private limited company can also issue debentures apart from accepting deposits from the public.
There is no minimum required for starting a private limited company. You can fix any capital as per the requirement of your business.
Yes, so long as the annual compliances are met, the private limited company will continue to exist. If you do not comply with the requirements, it will go dormant, until it is struck off the register altogether.
The authorised capital is mentioned in the last clause of the MOA and sets a limit up to which the company can raise its capital. The paid-up capital, on the other hand, the paid capital of the company. Please refer to our detailed analysis of capital.
Its advantages include a separate legal entity, uninterrupted existence, limited liability, easy & free transferability of shares, owning property, better avenues for borrowing funds.
GST Registration is required if the turnover of the business crosses the threshold limit or when the company does an inter-state supply. Please review your situation and decide for yourself if you need GST Registration or nor. Please note once registration under GST is obtained filing of regular returns is mandatory. Click to Learn more on GST Registration
NO the at the time of registration there is no provision for depositing anything as such. However, after the incorporation of the company, the shareholders need to transfer the subscribed share capital to the company bank account.
No, a private limited company is not allowed to offer shares to the public at large, and there is a complete restriction on public trading as such.
Not at all, the company once registered exists until it is legally closed. The registration certificate of a company is valid throughout and does not require any renewal as such. However, a company has to file annual returns to the ROC and Income Tax Department.
The regular cost of compliance of a company may consist of accounting, GST & TDS Returns, statutory audit and annual return filing to the ROC and the Income Tax Department. The overall cost of compliance would differ from company to company based on the number of transactions and turnover. For a startup, this cost is around twenty-five thousand in a year approximately.
Yes, under section 139 of the companies act, every company must get its books of account audited by an independent CA who is appointed as an auditor of the company. The first auditor is appointed within 30 days of the incorporation of the company.
The winding-up of a company is easy for the defunct or inactive company. You can file an STK-2 form with attested copy of a financial statement by a CA.
Yes, a company must maintain a registered office all the time. Any change in the registered address must be reported to the ROC within fifteen days in INC-22.
The registered office of the company should be such that is under key and lock to keep and preserve legal documents. There is no requirement for a commercial place for the registered office of the company. It can be held at the residential address as well.
Yes. There is no restriction in law on keeping the residential address as the registered office of the company so long you can put company nameplate there and get NOC from the owner of the property.
A Private Limited Company is incorporated with a physical address as the registered office of the newly registered Pvt Ltd company. Following are the list of the documents which is acceptable as proof of premises where the registered office of the company is situated. The address premises proof should not be older than two months.
Before a company occupies any premises as its registered address, a no-objection certificate must be obtained from the owner of the premises. Similarly, at the time of filing for company registration, we need a NOC from the current owner of the premises along with proof of ownership as explained above.
