How to register a Private Limited Company?

-




Private Limited Company is one of the most recommended forms of legal structure to start the business since this form of limited company registration offers limited liability and is easy to incorporate with minimal post-registration compliance.
Private Limited Company registration ensures the company gets fund with ease and avail maximum tax benefits. Once the limited company registration is completed, the registrar allots Certificate of Incorporation and PAN-TAN that can be used as a legal certificate for opening a current account and to get any other Licenses such as EPF, ESI, MSME, etc.
Private Limited Company registration imposed certain minimum restrictions such as minimum 2 shareholders and directors with at least one director being resident and Indian citizen. This blog consists of some useful information in case you are planning to get a limited company registration certificate. 

Merits of Limited Company Registration

Registering private limited company has several advantages over other legal structure such as partnership, proprietorship, and LLP:
  • A private company is allowed to raise funds in the form of equity capital from outsiders such as individuals or entities who are interested in subscribing to shares of the company. Therefore entrepreneurs seeking for the fund shall go for limited company registration
  • In case of unforeseen contingency and liabilities occurred, a private company provides limited liability to its shareholders, and therefore they will not be personally liable for debts and liabilities of the company
  • A private limited company has a separate legal entity and can sue and can be sued in its name
  • Company has perpetual existence which means it doesn't come to an end for no reason and death of directors have no impact on the existence of the company
  • Shares represent ownership, and thus ownership can be easily transferred from one owner to another

Process for Limited Company Registration

Since the procedure to register the company and its post-registration compliances are difficult, and it involves technical expertise, it is advisable to hire a consultant and get the complete services. We have also enumerated steps to register a private company online:

  • Get DSC from controller authority for directors and subscriber to digitally sign SPICe forms for applying for company registration
  • Apply for DIN in the case of new directors. However, directors with valid DIN need not apply the same. Currently, up to 3 DIN can be applied through SPICe forms and needs not to file separately through DIR-3.
  • Apply for name through web service RUN on the Ministry of Corporate Affairs. Up to 2 names can be applied with the validity of 20 days. Name applied shall not resemble with any other name or trademark registered
  • Once the name is approved, apply for company incorporation through online forms: SPICe, SPICe MOA and SPICe AOA. Download the form, fill the complete form, affix supporting documents, and complete the form by affixing Digital Signature Certificate of director and certifying professional.
  • Once the registrar receives application for limited company registration, it shall approve or reject the application as per its discretion, and if everything found correct, it shall issue COI as a legal license to run a private company that remains valid for the lifetime of the company

Documents Required

Following is the checklist of document required to be annexed with SPICe form: 
  • Government-issued valid documents such as driver's license/passport/voter id as an identity proof of every director and subscriber
  • Valid address proof such as bank statement or mobile bills of every director and shareholder
  • Self-attested PAN and Aadhar is mandatory for directors
  • Consent letter to be a director in form DIR-2 signed by every director
  • Declaration in form DIR-8 that directors are not disqualified to be the director
  • In case proposed directors are appointed, Interest in other entity signed by such director with necessary detail
  • INC-9 for a declaration by directors.

Planning to start your business? Get an expert's assistance!

Start-ups in India usually prefer Private Limited Company Registration for the reason funds from outside can be raised easily, limits the liability, and offers their employees with employee stock option to pull in maximum talented employees. Contact us to get complete assistance for limited company registration and post-registration compliances.

Comments

Post a Comment

Popular posts from this blog

What is Fire Department NOC all about?

-
Image
With the growth in the Real Estate Sector and flexible legal system, there is an alarming increase in fraudulent practices in the purchase of properties and its usage. The increasing level of deceptive practices has taken the attention of government who has mandated several licenses compulsory along with scrutinizing of property documents before allotting licenses for the property deals. The shocking incident occurred back in 2011 in which a fire broke out in Kolkata hospital caused injury to approx 100 lives. This incident witnessed several government hospitals and schools in Delhi were ordered to be shut down because they don’t hold valid NOCs. These incidents have pushed the government to take strict actions and issue stern warnings to the multi-story building by advising them to get mandatory fire department NOC from the relevant state fire department. Fire department NOC is a State License and is allotted by the respective state fire department after verification of bui...
Read more

How to obtain Sole Proprietorship Registration in India?

-
Image
Sole Proprietorship Registration is a straightforward process as it does not involve any formal or government procedures. It is one of the most opted forms of business establishments in India. Furthermore, when a single person opens a proprietor firm, then it is called a Sole Proprietorship. Moreover, you can validate your Sole Proprietorship firm by taking government licenses based on the type of business you are running. What to know more about Sole Proprietorship Registration ? Keep reading this blog to know more about Sole Proprietorship firm and how to register one for you. About Sole proprietorship firms When a person solely runs a proprietor firm, then that type of firm is called a sole proprietorship firm. Also, this type of business has the minimum compliance and another requirement along with least registration fees. However, there is no formal way of registering a Sole Proprietorship firm. Thus, you can obtain other government licenses and authorizations to prov...
Read more

How to apply for FIEO Registration?

-
Image
With a perspective to provide a genuine identity to the exporters in our country, the Government of India has established an organisation called FIEO abbreviated as Federation of Indian Export Organization. It is the organisation which represents the interest of the government recognised exporting firms such as Export House, Star Export House, Trading House etc. The organisation is not only involved in promoting the export of merchandise, but it also promotes the export of services. FIEO Registration is the mandatory requirement for every exporter in our country through which they can start and continue their international trading. Here we will have a look at the entire procedure for the FIEO Registration. What is FIEO? Federation of Indian Export Organization popularly known as FIEO was established in the year 1965 by the joint collaboration of Ministry of trade and commerce and Private Trade and Industry. It is the apex body of the commodity boards, export promotion counc...
Read more