PRIVATE LIMITED COMPANY REGISTRATION
A Private Limited company is a separate legal entity with limited liability and perpetual existence incorporated now under the Companies Act, 2013. It is the most prominent business structure currently in India.
A private limited company must have a minimum number of 2 members and a maximum of 200 members or shareholders. There is no minimum capital required in private limited company and Rs.5 Lakhs in case of a public limited company.
It must have a minimum of 2 directors and a maximum of 15 directors. Amongst the directors in the business at least one must be a resident of India.
Even foreign nationals, NRI’s are allowed to be shareholders/directors of companies with Foreign Direct Investment (FDI).
- Limited Liability.
- Credibility- It is a universally accepted business structure and as such is relied across borders by international companies when need arises to collaborate.
- Ease of expansion by raising investment from VC’s or private equity funds.
- Easy to avail loans from banks or private lenders.
- Protection of minority shareholder’s interest.
- Compliances- There are many compliances that have to be strictly adhered to failing which penalty will be imposed. Some of the compliances include filing of the annual returns, issuance of share certificates, filing director’s disclosure to ROC, maintenance of Statutory registers, conducting board meetings, AGM’s etc.
- Lengthy and complex winding up process which is highly regulated by appointment of official liquidator and legal documentation.
Documents required for Directors & Shareholders
- PAN Card;
- ID Proof – Voters Id / Passport / Driving License (Aadhar card shall not accepted)
- Address Proof – Latest Bank statement with transactions / Telephone bill / Mobile Bill with address mentioned (latest one or 2 months);
- Passport Size Photograph;
- Other Information
- Specimen Signature
Documents for registered office address
- Anyone: Latest Electricity bill / Mobile Bill / Telephone bill / Gas bill
- No Objection Certificate from the property owner.
Private Limited Registration Procedure:
A private limited company registration may be done online.
Step 1- Applying for DSC (the directors to get a Class 2 DSC (Digital Signature Certificate) to sign electronic documents after which DIN (Director Identification Number) can be applied for)
Step 2- Name search (Check if your preferred name for the company is available with the Ministry of Corporate Affairs (MCA). The name so selected will have to be as per the MCA guidelines with uniqueness and not illegal or offensive.)
Step 3- MOA and AOA drafting (On the availability of desired name with the MCA the Memorandum of Association and Articles of Association must be submitted for approval. On such approval after thorough scrutiny by the MCA the Certificate of Incorporation will be granted.)
Step 4- Preparing documents and uploading (Finally upon receiving the Certificate of Incorporation one can apply for PAN and TAN with the NSDL (National Securities Depository Limited) and go ahead with opening bank accounts and operation of business.)
Step 5- Approval for the company