Overview on Private Limited Company Registration

Once you have decided to start a company, the first and foremost requirement is to select a favorable business structure to register the company in India. The choice of the right business structure will affect many factors starting from your business name, your liability towards your business, and also how to file your taxes and statutory dues. The financial and operational success of the company depends on the business structure, according to the process of online company registration in India.

One of the most cited legal structure options for businesses in India is a Private Limited Company Registration. Normally, Startups and growing companies prefer to have online Company Registration as a private Limited company because it allows outside funding to be raised easily. It limits the liabilities of the shareholders and also enables them to offer Employee Stock Options (ESOP) to attract top talents. If you want to start a company in India, make sure you get Online Company Registration from our experts' help.

There are many benefits of getting a private limited company registration:

Private Limited Company can have a minimum of two members and a maximum of fifty members.
Directors have limited liability to creditors.
If there is any default, the banks or creditors need to sell off only the company's assets but not personal assets.

Benefits of Pvt Ltd Company Registration in India

A registered company avails many benefits. Company Registration makes a company genuine and increases the authenticity of your business. Some of the benefits are discussed below:

Loans can be issued in the name of the company and to make investments in different companies.
It will be considered as a separate legal entity.
Directors will have limited liabilities. They will not be personally liable for the company's affairs.
Tax benefits are available to the directors of the company.
Right from the time of establishment, the power to hold and dispose of the property is with the company.
The company will build goodwill for its brand.
With the help of company body structure, there can be a global reach.
To set up a platform to deal with suppliers, industries, vendors, and customers.
A registered company can sue or be sued in its name. The name of the entrepreneur will not be used here.
It is easy to distinguish oneself from others by entering into a corporate environment.
You can collect money from the general public to make an investment in the company.

Checklist for Registering a Private Limited Company in India

Minimum 2 Person/Directors

To register as a private Limited company in India, a minimum of two persons is required, who must act as shareholders or directors of the company. The highest number of shareholders a company can have is 200, and a company can have up to 15 directors.

Resident Director

At least one director of the company needs to be a resident in India. Any person if he or she stays in India for at least 182 days during the financial year irrespective of their citizenship shall be deemed to be a citizen of India.

Capital Requirement

Investment must be made as per the necessity of the business, and there is no least capital requirement for a company. However, while measuring capital, even the Government fee is added.

Unique Name of Company

The suggested name of the company must not be similar to any existing company or LLP. Moreover, you also need to verify the trademark registry to ensure that the name is not similar to any registered or applied trademark in India.

Registered Office

The registered office does not need to have a commercial space. Even a rented home can become a registered office, after obtaining an NOC from the landlord.

Process for Private Limited Company Registration in India

Company Registration in India promotes the progress of the startups and also gives an extra advantage over those who have not registered. The Ministry of Corporate Affairs manages the company registration steps along with the rules and regulations framed in accordance with the law.

The process for getting Online Company Registration is mentioned below:

Step1

Application for Digital Signature Certificate

Step2

Application for Director Identification Number

Step3

Checking and then making an application for name availability.

Step4

Filing of MoA and AoA online to register as a Private Limited Company

Step5

Apply for PAN and TAN of the company.

Step6

Certificate of Incorporation by ROC with PAN and TAN

Step7

To open a Current Bank Account in the name of the company.

Why Should You Check the Name of Company Before Doing Pvt Ltd Company Registration?

It is essential to ensure that the name of the company has not been taken by any other legal entity. We will help you in searching the name of the company and also checking the availability of any particular name in India against the MCA and trademark database. Our recommendation to businesses is to have at least three to four alternative names during the approval stage of a Private Limited Company Registration. The final permission is granted by the Ministry of Corporate Affairs (MCA) to approve the name based on the availability of rules and regulations. It is not necessary to have the name of your company as a brand name. However, if you want to get a trademark over your brand name, check if it has already been taken at http://www.ipindia.gov.in/, or we will help you in checking the brand name availability. In case the brand name is trademarked by some other company, you will need a no-objection certificate from the owner to have it approved in your name. Enterslice can help you through this difficult process.

Documents Required for Online Private Limited Company Registration

A Private Limited Company Registration in India cannot be done without a proper identity proof and address proof. All the directors and shareholders of the company needs to produce identity proof and address proof for the incorporation of the company. Below is the list of documents needed that are accepted by the Ministry of Corporate Affairs (MCA) to complete the online company registration process in India.

Copy of PAN Card or Passport of directors (Foreign Nationals &NRIs)
2 Passport size photograph of directors of the company
ID proof such as Aadhaar Card or Voter identity card of directors
Copy of address proof rent agreement or property papers
Electricity or Water bill of company place
Landlord NOC in case of rented office
In the case of personal property, a copy of sale deed or property deed
For foreign nationals, a notarized copy of the passport must be submitted mandatorily. Only valid documents need to be submitted. The residence proof documents like a bank statement or electricity bill must be less than two months old.

Registered Office Proof

To get company registration in India, the company must have a registered office. In order to prove the functionality of the registered office, a recent copy of the electricity bill or the property tax receipt or water bill must be submitted. Along with the rental agreement, utility bill, or the sales deed and a letter from the landlord with her/his consent to be used to register the particular address as the registered office.

Importance of Choosing a Right Structure for Company Registration

Company Registration must be done carefully as your income tax returns depends on the selected company structure. During the registration of your company remember that different structures have different levels of compliances to be met. For instance, a sole proprietor has to register only an income tax return. A company has to register income tax returns with the annual returns with the ROC or registrar of companies.

A company must mandatorily audit its book of accounts all year. . Hence, it is suggested to choose the right company structure while considering company registration. While some company structures are very investor-friendly, investors will always favour a legal and verified company structure.

Comparison of Company Structures

Particulars	Private limited Company	Limited Liability Partnership	One Person Company
Recommended For	Early-stage entrepreneurs /Growing businesses	Professional service firms	Small business and owned by a single promoter
Credibility	High	Moderate	Low
Raising Capital	Easy	Moderate	Difficult
Employee stock option	Yes	No	No
Business growth	High	Moderate	Low
Liability	Limited	Limited	Limited
Dividend Tax	Yes	No	No

Recent updates

Mar 9, 2020- SPICEe+ Form requires Mandatory Registration of EPFO & ESIC

After the introduction of SPICe+ (e-form) for incorporation of company, registrations for EPFO and ESIC shall be mandatory for all the registered organizations, and none shall be separately issued by the respective agencies.

Mar 06, 2020- Company Registration must be done in a new MCA portal

A Public, Private, and one person company registration in the EPFO, ESIC will be done on the new MCA portal. It simplifies the registration process by using a new web form SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus), integrating ten services from various departments.

How Enterslice helps you to get Company Registration

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Frequently Asked Questions about Private Limited Company Registration in India

1. Do I need to be present during the 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 personnel 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 business.

3. Can I register a Company at the residential address?

Yes. You can use the residential premises for Company registration as well for GST Registration.

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

No. You don't need to hire a full-time CA or CS. We can do all the formalities required for annual compliance on your behalf as we are backed by a team of professionals.

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

Usually, we register a company within 7-20 business days.

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

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

7. 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.

8. 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. DIN is allocated along with Certificate of Incorporation through SPICe Form.

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

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

10. Can an NRI become a Director in a Company?

NRI can become a director in a Pvt. Ltd. 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.

11. 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.

12. 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.

13. Is GST Registration mandatory for the 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 the northeastern state.

14. 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. No worries, we will do this on your behalf.

15. 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 are required to mention the detail of all the businesses in the MOA of the company while going for registration.

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

For this, trademark registration application should be filed to the authority after company registration.

17. What are the prescribed minimum requirements to become a director of a Private Limited company?

1. Any individual or company can become a director in a company.

2. An Individual must 18+ years Age.

18. Can I become a 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 a director in a company. But usually, you should avoid this. As your Employer will not allow you to float a company with the employment.

19. Is FDI allowed in a private limited company?

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

20. 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.

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

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

22. 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 of the company.

24. What is the Private Limited Company Registration Fees?

The government fees for Company registration is approximate Rs. 3500 and you can hire a CA/CS their fees may be in the range of Rs 5000 to 10,000 depending on their expertise and quality of work. The experienced CA/CS is able to give you error free MOA & AOA Draft as a well right selection of company business activity in Spice form. Always avoid fresher or Non-CA/CS firm in case you are hiring a company registration consultant in your city.

25. Can I convert my existing One Person Company to Private Limited Company?

OPC can be converted to Private limited subjectively you have a paid-up capital above Rs. 50 lac or annual turnover is more Rs 2 Cr. The conversion of OPC to Private limited company may take time between 15 to 25 days.