What is Company Registration?

Private Limited Company, it is the best form of starting a business in corporate structure, Private limited company registration has been always considered as 1st choice by startup community, if you are building scalable products or service and aiming for $ 100 Million dollar company in 3 to 5 years and planning for company registration then Private Limited company is the best choice. Company registration in India offers limited liability and legal protection to its shareholders, and also provides flexibility to offer employee stock option to founding employees. Angel investor, venture capitalists, etc. prefer to invest in a Private Limited Company over other business structures.

A Private Limited Company is required to hold at least 5 board meeting in a year (i.e. at least four board meetings in one calendar and at least one board meeting in each quarter), hold an Annual General meeting within 6 months from the end of the financial year and annual returns with Ministry of corporate affairs. Private Limited Company is more favorable and has more credibility than an Limited Liability Partnership (LLP) or General Partnership or Proprietorship. Approximately, more than 100,000 companies are registered every year in India.

At Enterslice, we are continuously assisting Start-ups to understand how to register a private limited company. In a private limited company must have at least two directors and shareholders at the beginning.

A Private Limited Company Registration Package includes


Service Tax Extra on Professional Fees. MCA Fees estimated based on official stamp duty prevailing in NTC of Delhi.


Advantages Private Limited Company Registration

Limited Liability

Liability of Members and Directors of a Private Limited Company is limited to the shares held by them. It protects the personal assets of the directors and shareholders. In the case of any financial distress to the company or if the company faces any loss, Directors, and Shareholders will not be personally liable for anything.

Separate Legal Entity

The company is a legal entity, capable of owing funds and property on its own name. Company is a legal person and it has complete right to control, manage and dispose of the property vested in its name. Property of the Company is not the property of its Shareholders. Company can sue any person and be sued in its own name.

 

Taxation Benefits

Companies are often taxed at a lower rate than that of other forms of businesses. Companies pay corporate tax on their taxable profits and are exempted from higher tax rates. Government also from time brings exempted tax rates for certain types of companies.

Perpetual Existence

Private limited company enjoys perpetual succession i.e. it continues to exist even if the shareholders of the company dies, or ceases to be the member of the member of the company. Life of business is not affected due to any change in the status of shareholders. It continues to exist till it is wound up in accordance with the provisions of the relevant law.

 

Scope of Expansion

The Scope of expansion is great in a private limited company. It is easy for a company to raise money for diversifying its business since the companies have to comply with various stringent regulations, they enjoy good credit worthiness with various financial institutions. It is very convenient for the companies to explore global market as compare to an LLP, Partnership or a Proprietorship.

Creation of Brand Value

Being a registered entity, a Private Limited Company is more trustworthy. Employees feel more secure in joining a private limited company, vendors feel more comfortable in offering credit, Investors and customers are more likely to be attracted towards a sound and organized corporate structure, which complies with various stringent legal provisions. A private limited company is easily recognized in the market in comparison to LLP.

 

Valuation and Customer

Valuation of the business is an important aspect of a 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 company by offering the unique value proposition to the customer life.

 

Company Registration Process:

1

DSC (Digital Signature Certificate)

Digital Signature Certificate is a digital equivalent of a handwritten signature which has an extra data attached electronically to any message or a document. All the directors of a company shall have a digital signature, which will be used for the purpose of registration, ROC filing, Tax returns, etc. For these purposes, you need Class II DSC.

2

DIN (Director Identification No.)

DIN is a unique Identification No. for existing or future Director containing personal information about him. All the Directors of a company must have DIN.Once your digital signature is approved, you will get an email from the Registrar of Companies that now you are eligible to be appointed as a director. A DIN is approved in just one working day.

3

Approval of Name of the Company by the Registrar of Companies

To get the name of your company approved, first of all, we will do the trademark search and check the availability of name on MCA portal, then we will proceed to file a Name approval application to ROC on your behalf. (Selected name of the company shall not contain any word prohibited in Section 4(2) & (3) of the Companies Act, 2013.)

4

Final Incorporation and CIN of the Company

After name approval from the ROC, we will proceed with final incorporation. We will file final incorporation form with all supporting documents, along with eMOA&eAOA and application for PAN & TAN. Registrar of companies takes three working days complete the approval procedure for incorporation of the company.

Documents Required for company Registration

From Directors and Shareholders

For the Purpose of Registered Office

FAQ on Company Registration

1. What is a Private Limited Company?

A Private Limited Company is a privately held business entity, which offers limited Liability to the shareholder and loss protection to the business and the owner. Company registration as private limited is most preferred.

2. How many members can be there to a Private Limited Company?

A Private Limited Company can be registered with a minimum of two members and maximum 200 members.

3. Advantages of starting a business as a Private Limited Company?

  • 1. A Private Limited Company registration offers Limited liability and protects personal assets of the Directors and Shareholders
  • 2. Private Limited Company after registration becomes a separate entity or a legal person. It has right to control, manage and dispose off the properties vested in its name.
  • 3. Taxation Benefits.
  • 4. It continues to exist even if the shareholders of the company dies, or ceases to be the member of the company.
  • 5. It has better scope for expanding and diversifying the business.
  • 6. It is more trustworthy for the investors and customers hence creates brand value.

4. How much does it costs to register a company registration in India ?

At enterslice we register a Private Limited Company for Rs. 14,750/- only. This package includes :

  • 1. DSC & DIN
  • 2. Company name Reservation
  • 3. MOA&eAOA
  • 4. PAN & TAN
  • 5. Corporate Identification No. (CIN)

5. What is a DSC?

DSC (Digital Signature Certificate) has legal validity it is considered as a handwritten signature, which has an extra data attached electronically to any message or a document. It is used for the purpose of registration, ROC filing, Tax returns, etc. For these purposes, you need a Class II DSC.

6. How can I obtain a DSC?

A DSC can be obtained from a Certifying Authority by submitting original supporting documents and self-attested copies.

DSC can also be obtained Aadhar eKYC based authentication, no supporting documents are required in this case.

Generally, the time taken by the Certifying Authority to issue a DSC is three to seven working days. On the basis of eKYC for Aadhar holder, Certifying Authority issues DSC on the same day.

7. What are the documents required for obtaining a DSC?

Following documents required to obtain a DSC:

  • 1.Proof of Identity.
  • 2. Self attested copy of PAN card.
  • 3. Driving License
  • 4. Passport
  • 5. Proof or residence: - self-attested copy of latest utility bill

8. What is DIN?

Director Identification No. (DIN) is an 8 digit unique identification no. for existing or future Directors, containing personal information about him.

9. Who can apply for DIN?

Any person who intends or is proposed to be appointed as a director of the company in future needs to apply for DIN.

10. What is fee for applying DIN?

There is a fee of Rs. 500 and some Certification cost by A CA for the purpose of applying for DIN.

11. What are the documents required for applying for DIN?

Documents required for applying for DIN

  • 1. Identity proof (PAN card/Driving License/Passport/Voter ID)
  • 2. Residence proof(Utility Bill/Driving License/Passport/Voter ID)
  • 3. Passport sized colored photograph

12. What are the documents required for company registration?

For Company registration following Documents required from Directors & Shareholders

  • 1. Copy of PAN card or passport or Election ID card or Aadhar Card
  • 2. Latest bank statement/Telephone or Mobile Bill
  • 3. Voter's ID/Passport/Driver's License
  • 4. Passport sized photographs of all the Directors and Shareholders
  • 5. Scanned copy of Signature (Same as on the PAN card)

Documents required for the purpose of registered office:

  • 1. Latest utility bill
  • 2. Scanned copy of rent agreement with NOC from the owner.

13. What are the steps involved in the procedure for Company registration?

Procedure of Company Registration:

  • 1. Obtain Digital Signature Certificate(DSC)
  • 2. Obtain Director Identification No.(DIN)
  • 3. Company Name approval
  • 4. File Form No. INC-32, INC-33 & INC-34
  • 5. PAN & TAN application
  • 6. Final incorporation & CIN

14. What are the things to be kept in mind while selecting the name of the Company

As per the Companies ACT, 2013 name of the company should be unique, and business objectives should also show in the name of the company. Name of the company shall not contain any word which is prohibited by government. Also, the name of the company shall not be in violation of any registered trademark.

15. How much time does it takes to register a Private Limited Company?

Usually, we take 7 to 10 days to register a Private Limited Company.

16. Do I need to be present during company registration process?

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

17. What are MOA & AOA?

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

18. What are eMOA&eAOA?

The concept of eMOA (electronic Memorandum of Association) and eAOA (electronic Article of Association) is newly introduced by the MCA to simplify company registration process. You don't need to file physical MOA & AOA after the introduction of SPICe. MOA & AOA are filed electronically by Form No. INC-33 & INC-34 respectively.

19. Can I change the registered office of the company after registration of the company?

Yes. The Registered office of the company can change anytime after registration, following the provisions of Companies Act, 2013.

20. For how long the registration of the company is valid

Once a company is registered, it will continue to exist till it wound up as per the provisions of Companies Act, 2013, or it is struck off from the register of Registrar of Companies.

 

Compare Your Options

Particular Private Limited Company Limited Liability partnership One Person Company Partnership Proprietorship
Recommended For Early-stage entrepreneurs  with broad business vision Professional service firms Small business and owned by a single promoter Family business Small traders in un-organized sector
Venture capital Funding  Very easy Not Possible Not Possible Not Possible Not Possible
Limited Liability Protection Yes Yes Yes No No
Dividend tax Yes No No No No
Perpetual Existence Yes Yes Yes No No
Statutory Compliances High Low High Low Low
Credibility High Medium Low Low Low
Strategic Alliances and  Joint venture Yes No No No No
Business Growth High Medium Low Low Low

Why Enterslice

  • 1Service Handled By 70+ Qualified Chartered Accountants And Company Secretaries.
  • 2100% Accuracy Guaranteed As Entire Process Managed By CA & CS.
  • 3Our Partner Of Firm Will Be In Direct Touch With You.
  • 4We Offer All Services For Startup From Registration Like Company, Vat And Legal And Assisting Startup In Fundraising.
  • 5We Are Among Top 25 Accounting And Tax Consulting Firms In India.
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