Private Limited Company Registration in India
Posted: Apr 09, 2019
Private Limited company registration is an attractive business model as it offers protection to the assets and holdings of the entrepreneur. In a legal term, a right to do business in a private company known as private company registration. The Companies Act, 2013 govern company registration in India.
The million dollar question is "How to register a private limited company?" So, we will discuss this topic in detail.
Advantages of Private Limited Company Registration
These are various advantages:
- Easy Fundraising
- Owner's limited liability
- Separate legal existence
- Management and ownership separation
- Ease of formation
- Perpetual succession
- Raise investment
- Minimum compliances
- Improves the credibility
- Have an exit plan
- Foreign investment
- Strong team building
What are the Requirements of Private Limited Company Registration?
These are the various requirements:
- The minimum number of directors for new company registration is the minimum of 2 or a maximum of 15 directors.
- Every new company formation should add the word "private limited".
- There is no restriction on the initial capital requirement for new company formation.
What are the Documents Required for the Private Limited Company Registration?
These are the following documents:
- PAN card
- Identity proof
- Director's address proof
- Business address proof
- NOC from an owner
- Rent agreement
- Copy of latest bank statement
- Active mobile number
- Active email ID
What is the Procedure for Private Limited Company Registration?
Here is the procedure:
- Name approval: Name approval for the proposed company names from the ministry of affairs. Up to two titles are provided, and in case of rejection, an opportunity of resubmission of form is submitted. The MCA must approve the name.
- Digital signature: The first step to register a company in India is to get the class two numeric names for the proposed directors or subscribers. The application for company registration is file online only.
- Name approval of the company: Name of the company should not be similar to any of the existing trademark or the current company. The name of the company should be unique.
- Filing of application for company registration process: A single application in SPICe form along with the MoA (Memorandum of Association), AoA (Article of Association) should be a file for DIN of proposed directors, incorporation of the company, PAN, TAN of the company. Once the application is approved, then the certificate of incorporation will be issued.
- PAN and TAN to register a company in India online: After the company is approved, the IT department will issue the PAN and TAN in the name of the company, which is mention on the certificate of incorporation.
- Incorporation process: The entire incorporation process will be complete in 8 to 14 working days on the subject to the approval of MCA.
The private limited company registration process is suitable for the business structure. It helps in gaining the external funding for the development of the business without diluting the interest of the founder in the company.
Still, you are looking for more information, kindly contact Enterslice.