Company Registration as Pvt Ltd, Documents Required & Advantages

Company Registration

Company registration in India has been simplified in year 2018. Cheers Startup !

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Package inclusive -

ROC fees, MOA & AOA Fees

2 DSC and Unlimited DIN No.

one Company Name Reservation via RUN

Articles of Association (AOA) and Memorandum of Association (MOA)

Corporate Identification Number (CIN), PAN & TAN

Share Capital fees for up to Rs 10 M (as per NCT of Delhi)

Note - Additional Stamp duty in Punjab, MP, Kerala & other states if any shall be paid by the client

Company Registration in India

There are many options in the Indian market to set up a business entity as it can be formed in the various forms such as sole proprietorship, partnership firm, LLP, company, etc. If a business setter opts to set up a business entity through Company Formation, then, in that case, he/she needs to understand “how to formulate and register a company?”

What are the types of Company Formation in India?

A company is a legal entity having a perpetual existence independent of its promoters, and is a corporate body having a common seal, has right to hold/sell/buy the property in its own name. A company can be formed in the form of a Private Limited Company, Public Company (Listed or Unlisted), OPC (One Person Company).

This further means that the business setter needs to further decide the type of company one wishes to form. The compliance part in the private limited company is less as compared to a public company, hence it is usually recommended to start with the private limited company. It must have two people as the shareholder and director, who can be the same persons. However one of the directors must be resident in India.

Why is it Important to select a right Type of Company Structure in India?

It is required to select a right type of company structure as there are different levels of compliances for every type of company structure.

What is Private Limited Company Registration?

Private Limited Company is the best corporate structure to start your own business. It can be registered with minimum two members and maximum with two hundred members. The private limited company is juristic, and the liability of members is limited to their shares. The private limited company can be registered within 7-10 days. A private limited company must hold a board meeting and file annual returns with MCA (Ministry of Corporate Affairs). The private limited company has more credibility than an LLP or General Partnership. Venture capitalist and Angel investor prefer to invest in a private limited company. Approximate every year, more than 100,000 companies registered India.

Package Inclusions

DSC and Director Identification Number (DIN)
Company Name Reservation - RUN one Attempt
Articles of Association (AOA) and Memorandum of Association (MOA)
Corporate Identification Number (CIN)
PAN & TAN
Free Legal Support for Startups

Note* GST Extra on Professional Fees

MCA fees / official stamp duty estimated on the basis of territories.

What are the steps involved under Private Limited Company Formation in India?

1. Digital Signature Certificate (DSC)

All Proposed directors of the private limited Company should have a digital signature which will be used to file the Company Registration application, ROC compliance forms, and Income Tax returns.

2. Director Identification Number (DIN)

Every individual intends to become a director in a company has to file an application for obtaining DIN. You will get an approval email from the Registrar of companies that you are now eligible to become a director in a company. It takes around one working day to approve DIN.

3. Name Search

For name availability, we have to make sure that there is no trademark on the same name and no company is already registered on the proposed name. Thereafter we will file a Name approval application to ROC on your behalf.

5. Current Bank Account Opening on the name of the Company

The last step in private limited company registration is to open a current bank account on the name of the company. after the getting certificate of incorporation, you have to simply open a current bank account as per your choice on the basis of the documents which is provided by us.

4. Final Incorporation via Spice Form

After Name approval from the Registrar of Companies, we will file final incorporation e-form with all the supporting documents like registered address proof, Declaration from directors etc. Registrar of companies takes around 3 working days to complete the approval process for a company registration.

After verification of the incorporation documents, if it is approved by the Registrar of Companies then the Certificate of Incorporation will be issued along with the PAN & TAN.

Documents Required for Private Limited Company Registration in India

PAN Card
Aadhar Card/Passport/Voter’s ID Card/Driving License
Latest Bank Statement/Utility Bill

Any Utility Bill
Rent Agreement with NOC from Owner/Landlord

Advantages of Private Limited Company Registration

Limited Liability

Liability of Members and Directors of the Private Limited Company is limited to their shares. It means that if the company suffers from any loss and faces financial distress because of primary business activity, the personal assets of Shareholders/Members/Directors will not be at risk of being seized by banks, creditors, and government.

Continuity of Existence

The life of a business is not affected by the status of shareholders and even after the death of the shareholder; the private limited company continues to exist.

Scope of Expansion

The Scope of expansion is higher because easy to raise capital from a venture capitalist, angel investor, financial institutions and the advantage of limited liability. The private limited offer more transparency in the company.

Brand Value

In comparison to Sole Proprietorship, Private Limited Company has more value as it is a separate legal entity managing affairs on its own name.

Valuation and Customer

The valuation is an important aspect of the company and high valuation comes from loyal customers. You should work on a business model with a higher lifetime value of a customer; Entrepreneur should focus on higher assessment of the company by offering the unique value proposition to the customer's life.

Frequently Asked Questions about Company Registration in India

1. Do I need to be present during Company Registration process?

Company registration is a 100% online process. No need to present physically to our office or ministry of corporate affairs. We will send our person to your home or office for document signature.

2. What is the Articles of Association (AOA) and Memorandum of Association (MOA)?

AOA refers to articles of association which defines the internal constitution of the company, and MOA defines mission, vision, and business object of the company in the long run.

3. Do I need to hire a full-time CA/CS?

No. You need not hire a full-time CA or CS. We can do all the formalities required for annual compliance on your behalf as we have a team of professionals.

4. How much time is required for registering a private limited company in India?

Usually, we register a company within 7 business days.

5. What are the rules for picking a name for a private limited company?

As per Companies Act 2013, company name should be unique, and the name should reflect the business object.

6. What documents are required for Private Limited Company Registration in India?

All proposed directors should provide identity proof (like Aadhar/Passport/DL/any other government issued ID, Utility bills as address proof, a copy, PAN Card (for Indian Nationals) and Passport (for foreign nationals). No-objection Certificate must be submitted by the owner of the registered office premises.

7. What is a DSC & DIN?

The DSC is a digital signature certificate which is issued by the certifying authority to sign the electronic documents. DIN is a director identification number. Every proposed director in a company must have a valid DIN.

8. What is the validity of the Private Limited Company Registration?

A Registration certificate issued by the registrar of the company shall be valid throughout the life of the company.

9. Can an NRI become a director in a company?

NRI can become a director in a company and there is no requirement of obtaining the prior approval of the government or RBI however at least one director must be a resident of India.

10. What is the minimum investment required to set up a Private Limited Company in India?

For Private Limited Company Registration in India, there is no requirement of minimum Paid-up Share capital or contribution.

11. What if I don't have any partner? Can I Register my Private Limited Company with my family members?

Yes you can register your Private Limited Company with your family members and later you can transfer shares if you want.

12. Is GST Registration mandatory for private limited company?

GST Registration is not mandatory until the turnover of your company reaches 20 lakh rupees or 10 lakh rupees in case of north eastern state.

13. Can I apply for Startup India registration?

Yes, startup India registration is possible with the private limited company registration. For this, you just need to register with the startup India portal. We can do this on your behalf.

14. Am I eligible to do multiple businesses under one private limited company registration?

Yes you are eligible for multiple businesses under one private limited company. However you would be required to mention the detail of all the businesses in the MOA of the company.

15. How can I protect my company name or logo in India?

For this, trademark registration application will be filed with the authority after company incorporation.

16. What are the prescribed minimum requirements to become a director in a Private Limited company?

1. Any individual or company can become director in a company.
2. An Individual must 18+ yr Age.
3. They must possess Director Identification Number

17. Can I become director in a company if I am already working somewhere or doing a full time Job?

If there is no employment contract then you can become director in a company.

18. Is FDI allowed in a private limited company?

Yes, Venture capitalist firms or angel investors can make investment in the private limited company.

19. What are the mandatory Annual Compliances for Private Limited Company?

Following are under the mandatory annual compliances

1. Auditor Appointment
2. Convene AGM
3. Income Tax Return filing
4. Filing of Annual Return and financial statements etc.

20. Can private limited company be converted into any other type of entity such as LLP or OPC?

Yes Private limited company can be converted into the LLP or OPC at any time by filing the appropriate forms with the prescribed government authority.

21. What is the meaning of limited liability in the Private Limited Company?

Limited liability means that the liability in a private limited company is limited up to the contribution made by the members in the company.

22. What other registrations are required to start my own business?

There are no such mandatory registrations however you can apply for MSME Registration or Trademark Registration or FSSAI License or Patent Registration as per your requirement.