Private Limited Company Registration

Introduction to Company Registration

Choosing the legal status of the company entity and obtaining the necessary registration is one of the many crucial parts of establishing a business. The benefits of incorporating a firm as a company are numerous. Companies formed in accordance with the Companies Act of 2013 have limited liability for directors and shareholders, a continuous existence, and enhanced credibility. According to the rules and regulations established by the Ministry of Corporate Affairs, a company must be registered with the Registrar of Companies in order to be incorporated under the Companies Act of 2013. Companies may qualify for a variety of government subsidies and exemptions, depending on their business style. On the website of the Ministry of Corporate Affairs, one can register a corporation.

What is a Private Limited Company?

A Private Limited Company (PLC) is one of the most common types of legal entity in India. Private Limited Companies are governed by the Companies Act, 2013 and require a minimum of 2 Directors and 2 Shareholders with one of the Directors being an Indian Resident and Indian Citizen. A Private Limited Company is a business entity that is privately held by a small group of individuals, called shareholders. The liability of the shareholders is limited to the extent of their shareholding, which means their personal assets are protected in case of any liabilities incurred by the company. The company operates as a separate legal entity, distinct from its shareholders, and enjoys perpetual existence.

Advantages of Private Limited Company:

• Limited Liability: Shareholders are liable only to the extent of their shareholding, limiting their personal liability.
• Separate Legal Entity: The company has a separate legal identity, enabling it to own assets, incur liabilities, enter into contracts, and file lawsuits.
• Perpetual Existence: The company continues to exist even if the shareholders change or exit the company.
• Fundraising: Private Limited Companies can raise funds through equity shares, venture capital, and angel investments.
• Credibility: A registered Private Limited Company often enjoys more credibility among suppliers, customers, and financial institutions.

Private Limited Company Registration Process:

• Obtain Digital Signature Certificate (DSC): The first step is to obtain a DSC for the proposed directors and shareholders. DSC serves as a digital equivalent of physical signatures and is required for online filing of documents.
• Obtain Director Identification Number (DIN): The proposed directors must obtain DIN from the Ministry of Corporate Affairs (MCA). DIN is a unique identification number for directors and is mandatory for company registration.
• Name Approval: The next step is to apply for the name approval of the company. The name should be unique, suggestive of the business activity, and comply with the naming guidelines provided by the MCA.
• Prepare and File Incorporation Documents: Once the name is approved, the required documents, including the Memorandum of Association (MoA), Articles of Association (AoA), and other incorporation documents, need to be prepared and filed with the Registrar of Companies (ROC).
• Pay the Registration Fees: The registration fees for a Private Limited Company vary based on the authorized share capital. The fees need to be paid online along with the submission of incorporation documents.
• Verification and Approval: After filing the documents and paying the fees, the ROC verifies the application. If all the requirements are met, the ROC issues a Certificate of Incorporation, indicating the successful registration of the Private Limited Company.

To register a company in India, Documents required for registration

• Copy of PAN Card of directors
• Passport size photograph of directors
• Aadhaar Card/ Voter identity card of directors
• Copy of Rent agreement (If rented property)
• Electricity/ Water bill (Business Place)
• Property papers (If owned property)
• Landlord NOC (Format will be provided)
• MOA & AOA

Minimum requirement for Private Limited registration

• 2 Shareholders
• 2 Directors
• DIN
• DSC
• Minimum Authorised Share Capital 1 Lakh

Conclusion:

Private Limited Company registration in India offers several advantages, making it a popular choice for entrepreneurs and businesses. The process involves obtaining DSC and DIN, name approval, preparation, and filing of incorporation documents, payment of fees, and verification by the ROC. To complete the registration, various documents such as identity proof, address proof, photographs, proof of registered office, MoA, AoA, consent letters, and declarations need to be submitted. By following the necessary steps and fulfilling the requirements, entrepreneurs can establish their Private Limited Company and enjoy the benefits it offers.