A Private Limited Company (PLC) is a firm that is privately owned and operated by small enterprises. This type of company structure bans shareholders from openly exchanging their shares, limits owner responsibility to their shareholdings, and limits the number of shareholders to 200. One of the most widely advised ways to start a business in India is to form a private limited company. This sort of business provides restricted responsibility for its stockholders, as well as ownership limits. An LLP is made up of partners who own and operate the company. Directors and stockholders may be different in private limited company registration. Online Private Limited Company Registration process in India – Documents required & Steps.
What is Private Limited Company Registration?
Due to its numerous advantages, a Private Limited Company (PLC) is the most common corporate entity among India’s small, medium, and big firms.
- Easy to Get Funding, Raise Venture Capital Fund
- Ideal for Startups and Growing Businesses
- Has a Limited Liability Policy
- Tax Benefit
Private Limited Companies are the best option for any business intending to scale-out through external finance because it is relatively easy to issue new equity shares in exchange for the funds received.
The Ministry of Corporate Affairs, or MCA, is the Indian government’s regulatory body for all private limited companies. The Indian Companies Act has been renamed the Companies Act of 2013.
Register the directors with the Ministry of Corporate Affairs (MCA), register the company’s name, and submit the company’s incorporation documents, such as the Memorandum of Association (MoA) and Articles of Association (AoA). A private limited business might have as few as two members and as many as 200. There are no minimum subscription amounts or share capital requirements. Depending on the document’s readiness, the complete process takes 1-2 weeks.
Minimum Requirements for Private Limited Company Registration
Directors:
A PLC must have at least two directors, one of whom must be an Indian citizen.
Capital Contribution:
A company’s minimum capital requirement is not specified; however, permitted capital should be at least Rs 1 lakh.
Registered Address
For correspondence purposes, the company requires an address. This may be a business space.
Check List for Private Limited Company Registration
A. From the Board of Directors and Members (Self-attested)
- Members’ and Directors’ PAN Cards
- Aadhar card is a government-issued identification card.
- Passport / Election ID Card
- Make a scanned copy of your photographs.
- The most recent bank statement must be less than 30 days old.
B. For registered office
- Scanned copy of Notarized Rental Agreement
- Scanned copy of No-objection Certificate from owner
- Scanned copy of Property Deed in English
Benefits of Company Registration
There are many benefits to forming a business. Your company’s legitimacy will be enhanced if it is registered. It benefits your company in the following ways:
- Protects you from personal liability as well as other risks and losses.
- Increase the number of customers you have
- With ease, obtain bank credits and good investments from reputable investors.
- Protects your company’s assets by providing liability protection.
- Increased capital contribution and stability
- Enhances the company’s ability to expand and grow large.
What are the steps for forming a Private Limited Company?
- Step 1: Obtain a Digital Signature Certificate as the first step.
- Step 2: Obtain a DIN* number
- Step 3: Availability of a Name
- Step 4: Create the SPICE INC-32
- Step 5: MOA and AOA are the final steps.
- Step 6: Obtaining a PAN and TAN. Online Private Limited Company Registration process in India – Documents required & Steps.
FAQ’s on Private Limited Company Registration
What are the rules for picking a name for a private limited company?
Applicants are expected to follow a few name standards by registrars of companies (RoC) in India. Some of them are subjective, implying that your application’s approval may be contingent on the officer’s judgment. However, the more you follow the rules outlined, the more likely you will be approved. But first, check that your name is available.
How much time is needed for setting up a private limited company in India?
It will take maximum 15 days if you have all of your documents in order.
Do I need to be physically present during this process?
No, forming a new business is done online. You would not need to be there because all documents are filed online.
What documents are required to complete the process?
All directors should submit proof of identity and address and a copy of their PAN card and passport (if they are Indian citizens) (for foreign nationals). The owner of the registered office must present a no-objection certificate.
Does a private limited company have continuous existence?
The private limited corporation will continue as long as the annual compliances are met.
Is it necessary to have a company’s books audited?
Yes, a private limited company must hire an auditor regardless of income. In reality, an auditor must be hired within 30 days of the company’s creation.
What are articles of association and memorandum of association?
The rules, vision, and objective of your company, and also the details of the business and the roles and obligations of directors and shareholders, are all laid out over these agreements.
Are two directors necessary for private limited company registration?
A private limited company does require a minimum of two directors.
The maximum number of members is 200.
If you are a single proprietor of the business, you can register as a one-person corporation.
What is the minimum capital needed to form a private limited company?
A private limited corporation can begin with no minimum capital.
Can the director of a private limited company be a salaried person?
A salaried person can become a director in a private limited, LLP, or OPC private limited company.
In many circumstances, companies are unconcerned about their employee’s position as a director of another company.
Can the limited liability partnership (LLP) be converted to a private limited company?
Because an LLP is not an MCA, it cannot be converted into a private limited company. The LLP Act of 2008 and the Companies Act of 2013 include no mechanism for converting an LLP into a private limited company. However, if a company wants to develop, it can form a new private limited company with the same name. The LLP corporation only needs to issue a certificate of no objection.
What is the time taken to form a private limited company?
The amount of time it takes also depends on the applicant to provide essential documents and the speed with which the government issues approvals. To ensure a quick registration, choose a unique name for your proposed company and ensure you have all of the essential paperwork before starting the registration process. Online Private Limited Company Registration process in India – Documents required & Steps.
Can one register a private limited company on their home address?
Yes, the owner’s home address can be used to register the business. It is necessary to present a copy of the utility bill.
If there are no partners available, then can one register their family members in the company?
Yes, adding a family member as a partner is a wonderful idea.
This can be changed or the directors’ shares transferred at a later time.
Does one have to be present in person for the incorporation of a private limited company?
- The entire process is completed online.
- The documents must be scanned and sent by mail.
- The MCA sends the firm incorporation certificate to the business address by courier.
What are the prerequisites to incorporate a Private Limited Company?
The following are the requirements for forming a private limited company:
- The number of people should be between 200 and 2500.
- At least two directors and two shareholders are required.
- A DIN PAN card copy of directors/shareholders is required for each director. NRI subscribers will receive a copy of their passports.
Can the private company be incorporated with a residential address?
Yes. For incorporation, the company must show proof of address. However, the Ministry of Corporate Affairs (MCA) enables a company’s registered address to be residential. As a result, the registered address can be any address.
What are MOA and AOA?
Section 2(56) of the Companies Act defines a Memorandum of Association (MOA). It’s the basis upon which the business is based. It establishes the company’s constitution, powers, and objectives.
Section 2(5) of the Companies Act defines the Articles of Association (AOA). It lays out all of the company’s management rules and regulations in detail.
What are the attachments to Form 8?
Form 8 must be accompanied by the following documents:
- A necessary attachment under the Micro, Small, and Medium Enterprises (MSME) Development Act, 2006 is disclosure.
- If any contingent obligations exist, a statement of contingent liabilities must be submitted.
- As an optional attachment, any further pertinent information can be included.
How is SPICe INC 32 different from INC 29?
INC 29, which was used to incorporate firms, is substantially similar to SPICe INC 32. Both formats make the process of forming a business go more quickly. The difference between the two forms is that in the new SPICe INC Form 32, there is a provision for entering name approval that the applicant has already obtained. In contrast, in INC 29, there was no provision for entering a previously obtained name approval, which resulted in the possibility of submission and rejection. Online Private Limited Company Registration process in India – Documents required & Steps.
Is there a limit on the number of directors who can use the SPICe INC 32 to obtain DIN?
A total of three directors can use the unified form to apply for DIN allotment during the company’s incorporation. Are PAN and AADHAR mandatory?
Is it mandatory to file eMOA and AOA along with SPICe INC 32?
In the following situations, filing an eMOA and an eAOA is required.
- Individual subscribers are citizens of India.
- Individual subscribers who are foreign nationals must have a valid DIN and DSC and proof of a valid business visa.
- Non-individual subscribers based in India must have a valid DIN and DSC.
In what circumstances are physical copies of MOA and AOA required to be signed and attached?
If non-individual initial subscribers are based in India or if individual international subscribers do not have a business visa, physical copies must be signed and attached. It should be noted that if physical MOA and AOA are filed, eMOA and eAOA are not required.
How are PAN and TAN communicated to the user once SPICe INC 32 is accepted?
The Certificate of Incorporation (COI) will be issued with a valid PAN and TAN as assigned by the Income Tax Department following the receipt of SPICe forms. The applicant will receive an email including the COI as an attachment and the PAN and TAN. The PAN and TAN in the email will be legitimate because the laminated card requirement for PAN has been removed.
Why SattvaCFO?
SattvaCFO’s dedicated registration team can help you get through the process seamlessly. With strategies unique to our methods, we can ensure that you will get your company as quickly as you ever imagined. Online Private Limited Company Registration process in India – Documents required & Steps.
