Private Limited Company

A private limited company is a perfect beginning for any individual who needs their business to be a separate legal identity. Private Limited Company registration is the most famous legal structure option for businesses in India. A private Limited company is the most conspicuous type of business entity in India in contrast with others. It is essential to register your company as a private limited company that has various advantages from simple to incorporate to simple to dissolve. Advicepro can assist you with company registration across India at a very moderate price.

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Advantages of Private Limited Company

Easy Fund Raising
The registration process of the company is strict enough to make this structure credible, among others, which makes it easier to raise funds or borrow from external sources. The organization itself provides a number of ways of raising funds in the form of private equity, ESOP, and more.
Separate Legal Existence
Once registration of the Corporation in India has been completed, a legal person is formed in the eyes of the law. It distinguishes itself from its founders and managers. The business will work on its own behalf simply by opening a bank account to own assets and entering into a contract with the parties. This also provides for the right to sue third parties in the event of any default.
Owner’s Limited Liability
The obligation or debt of the company does not create a charge on the personal assets of the owner. Their liability is limited only to the money invested and unpaid by them.
Management and Ownership Separation
Separate ownership and management allow both the organization and the management to concentrate on their potential work. The shareholders are responsible for managing and running the company without losing power in the form of a vote.

Checklist for Registering a Private Limited Company in India

In order for any Private Limited Company (PVC) to be registered in India, the below conditions have to be met.

Two Directors

A private limited company must have at least two directors and more, there can be 15. Of the directors in the business, at least one must be an occupant of India.

Unique Name

The name of your business must be Unique. The recommended name should not match any current organizations or trademarks in India

Minimum Capital Contribution

There is no Minimum capital Contribution to a company.

Registered Office

The registered office of an organization doesn’t need to be a business space. Indeed, even a leased home can be the registered office.

Shareholders

A private company must have a minimum of two shareholders and cannot exceed 200 shareholders.

Shareholder Eligibility

Shareholders can be individuals or other companies, and there are no restrictions on their nationality or residency for private limited companies.

Required Documents for Private Limited Company Registration

For company registration in India the applicant should provide director and shareholder documents along with the proof of registered office address. Here is a list of the required documents for company incorporation:

Passport size photos of directors and shareholders
PAN card of all the directors
Aadhar, Driving Licence, Passport or Voter ID of the directors
Proof of residence
NOC of the registered office address
Utility bills for registered office proof
Memorandum of Association (MOA)
Articles of Association (AOA)
Director and Shareholder Details
Digital Signature Certificate (DSC)
Director Identification Number (DIN)

Steps for Private Limited Company Registration Process

Pvt. Ltd registration procedure is easy but a professional would be needed to complete the same. In addition, the procedure has been completely changed by the government in order to promote the ease of doing business.

Apply Digital Signature Certificate
The first step of the Pvt. Ltd Registration process is to apply for a Digital Signature Certificate to the directors of the proposed Pvt. Ltd. This is one of the important steps as the registration process of Pvt. Ltd Is done online and requires the forms to be digitally signed.
Check for Pvt. Ltd Name availability
Before the process of registering Pvt. Ltd. We will ask you for a few names of your choices. We need to check the availability of the name to make sure it’s already not taken. Names can be checked on the MCA portal. This is done in order to avoid rejections.
Name Approval and Reservation
Name Approval or Name Reservation is the method of reserving a unique name via RUN (Reserve Unique Name) submission form. A list of two proposed names of the Pvt. Ltd will be submitted to the authority for approval. The ROC reserves a name out of two names, and the Pvt. Ltd registers with the same name. The Registrar will approve the name only if it is not considered undesirable by the Central Government. Nor name should not relate in any way to any of the existing partnerships, Pvt. Ltd, trademarks or corporate entities.
MOA & AOA Submission
Once the name has been approved, it is necessary to draft up a Memorandum of Association and Articles of Association. Both MOA and AOA are registered with the declaration of agreement of the MCA.
Get Incorporation Certificate of Pvt. Ltd
When the Registrar approves your MOA and AOA, you’re closer to having your Pvt. Ltd licensed. The next step is to obtain an Pvt. Ltd Incorporation Certificate. You can do this by submitting all the documents to the Registrar. The time frame is between 2 and 6 days. Once you have your Pvt. Ltd Incorporation Certificate, you ‘re ready to go.
Apply for GST and Current Account
Once the company gets incorporated one has to apply for GST according to the threshold limit. After this, you should submit an Incorporation Certificate, MOA, AOA and PAN to a bank to open your bank account.

Search the company name before Company Registration

The first step of the Company Registration is to ensure that the company name has not been taken by another company. We can search the company name to check the availability of the specific name in India against the MCA and trademark database.

We Suggest the Company to think of three to four elective names during the approval phase of Private Limited Company Registration. The Ministry of Corporate Affairs will be the final authority to approve the name dependent on the availability rules and guidelines.

If your’s favored name is taken, do remember that the name of your Company doesn’t need to be your brand name. However, in case you’re going to trademark your brand name, likewise, check if it has already been trademarked at http://www.ipindia.gov.in/. In the event that it has been trademarked, If it has been trademarked, you would need a no-objection certificate from its owner to have it approved as your company’s name.

Highlights of Incorporating a Company in India

The process is governed by the Ministry of Corporate Affairs (MCA) and involves registering business with the Registrar of Companies (RoC), along with obtaining a Digital Signature Certificate (DSC) and Director Identification Number (DIN).

Limited Liability
Shareholder enjoys limited liability to the extent of capital invested. Shareholder’s personal assets protected in the event of the company’s insolvency.
Separation Of Mangement & Shareholders
Management & shareholders can be separated. A shareholder can invest the fund in fruitful business without managing & Management can operate their business without frequent interruption of investors.
Separate Legal Entity
A company is a Separate legal entity from its Owners and Management in the eyes of law.
Perpetual Succession
A business of the Company will not affect if there is any change in the ownership of the company.
Asy Equity Funding
Startups businesses can easily raise funds from investors on an equity basis.
Taxation
Every Pvt Ltd Company enjoys for recently announced start-up tax exemption, if meets eligibility criteria.

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FAQs on Private Limited Company

To make things easier, we’ve answered some of the most common questions about Private Limited Company registration. These FAQs will help you understand each step clearly and give you the confidence to move forward. Explore the answers below and take the first step toward building your business.

What is a private limited company?

A private limited company is a kind of privately-held business entity. This kind of business limits proprietor obligation to their offers limits

For small businesses, what are the benefits of a private limited company?

It gives creditability to business in the eyes of financial institutions, providers and potential customers. As it causes simpler for companies to get loans at ideal terms from banks or convincing potential customers while going into bargains.

Do I need to be physically present during this process?

No, new company enrollment is a completely online procedure. As all documents are filed electronically, you shouldn’t be truly physically present. You would need to send us scanned copies of all the necessary documents & forms.

How much time does it take to set a private limited company?

If all required documents are in order and minimum requirements are met, the process typically takes at least 10 to 15 days, depending on the ROC

How to reserve the name of the company?

The applicants can furnish the minimum of 2 names with their preference order under RUN form. The candidate should follow the rules of the Act or guidelines. The registrar center may ask to re-present the application with an alternate name if names don’t fall under the criteria of uniqueness, importance or don’t satisfy different necessities.

Who can become a director of the private limited company?

Any individual over the age of 18 years can turn into the director in the company after acquiring Director Identification Number (DIN). Furthermore, since there are no particular criteria gave regarding citizenship or residency, Even an outside national can likewise turn into a director.

What is a digital signature certificate?

DSC is given as a token issued by Certified Authorities. Any form petitioned for online company incorporation in India will be submitted after affixing the DSC of an Applicant. The digital signature is an online signature used for signing e-forms.

Can a salaried person become a director of a company?

Yes, a salaried individual can turn into the director in private limited, LLP or OPC private restricted organization. One needs to check the work understanding if that takes into account such arrangements. In a lot of cases, the businesses are very OK with the way that their representative is a chief in another organization.

Types of Company Registration

Under the Companies Act of 2013 different types of business entities can be registered. Each and every business entity has its own set of benefits and drawbacks. Here is a complete outline of different business entities and their corresponding information.

	Private Limited Company	One Person Company	Limited Liability Partnership	Partnership Firm	Proprietorship Firm
Recommended For	Start-ups and growing companies	Sole promoters	Professional services firms	Home businesses	Small traders and manufacturers
Ease of Accommodating Investment	Very easy to accommodate	Possible, but severely unlikely	Possible, but unlikely	Almost impossible	Impossible
Limited Liability Protection	Yes	Yes	Yes	No	No
Tax Advantages	Few benefits	Few benefits	Few benefits	Minimal	Most efficient
Perpetual Existence	Yes	Yes	No	No	No
Statutory Compliances	High	High	Minimal	Low	Low