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Private Limited (PVT LTD) Company Registration

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Brief Overview About Private Limited Company Registration

Private limited company Registration is the most secure way of registering a business in India. On average, the Ministry of Corporate Affairs (MCA) registers 15,000 companies/Month. A private limited company is governed by the Companies ACT 2013. It is regulated by the Ministry of Corporate Affairs (MCA), which, through the powers vested with the Registrar of Companies (ROC), oversees its functioning.

Advantages of Pvt ltd Company Registration.

Limited liability

Businesses often need to borrow money either for working capital or for managing capital expenditure. In general business entities like in partnership, partners are personally liable for debts taken by a firm. In the case of a Private limited company, Shareholders are liable for any debts of the company in proportion to their paid-up capital and their personal assets are safe.

India is a nation of emerging startups. In a startup after a certain time, external funds are required from Venture capital funds, Angel Investors, or from seed funding. Private limited companies provide easy options to raise funds through diluting equity.

After a point, if the company feels the need for technical, financial, or management know-how from a person, a Private limited company can easily add a new director or shareholder who can provide necessary support to the company.

After a point, if the company feels the need for technical, financial, or management know-how from a person, a Private limited company can easily add a new director or shareholder who can provide necessary support to the company.

A Private limited company has a separate legal entity from its directors or members. Any legal matters will be in the company’s name and not in the director or shareholder’s name.

Eligibility for the Registration

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1. Shareholders

A minimum of two shareholders and a maximum of two hundred members are required to incorporate a private limited company.

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2. Directors

A minimum of two directors and a maximum of fifteen directors are required to incorporate a private limited company.

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3. Registered Office

To register a private limited company, a registered office is required for proper communication.

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4. Capital

There is no minimum requirement of paid-up capital but there is a requirement of minimum authorized share capital of Rs. 1 Lac.

Pvt Ltd company registration procedure

Here are the steps involved in registering a private limited company

  1. Obtain a DSC of proposed directors (Minimum Two Directors).
  2. Apply RUN for Company Name approval. The private company’s name must end with “Private Limited Company registration.”
  3. After getting name approval for the company, we need to prepare documents like MOA and AOA in the prescribed format by MCA and file the same. Application for company formation is prepared in ‘SPICE+(INC-32)’ form, Spice form consists of two parts namely.   
  • Incorporation.
  • DIN allotment.
  • Mandatory issue of PAN.
  • Mandatory issue of TAN.
  • Mandatory issue of EPFO registration.
  • Mandatory issue of ESIC registration.
  • Mandatory Issue of Professional Tax Registration Mandatory opening of the current bank account of the company.        

          For the Incorporation of the company, the user may either choose to submit Part A for reserving a name first and thereafter submit Part B for incorporation            & other services or file Part A and B together at once for incorporating a new company and availing the bouquet of services as above.  

      4. If the MCA is satisfied with the documents, it will grant a certificate of incorporation to the company within 30 days. 

Required Documents.

Identity Proof of Directors

PAN Card, Aadhar card,
(voter ID card/Passport/ Driving license/Ration card)

Address Proof of Directors

Bank statement/Electricity bill /Telephone/Mobile bill

Register Office Address Proof

Electricity bill/Rent agreement

Identity Proof

Passport
Residence card

Address Proof

Bank statement/ Electricity bill
Telephone/Mobile bill

Registered office

Electricity bill/Rent agreement

FAQ

Ans – No, a private limited company can be incorporated with a minimum of two directors and two members/shareholders.

Ans – Yes, Class-3 Digital signatures of all proposed directors are required for incorporation into the company.

 Ans – No. Aadhar card is not considered as valid address and identity proof of Directors.

Ans –Once a company is incorporated, the first thing to do is to open a current company account. After opening a current account, all the shareholders should deposit their portion of paid-up capital in the current account within 180 days of incorporation. After depositing the same in the current account, the INC- 20A form is filed as commencement of business. The first auditor appointment is also to be done within 30 days of company incorporation. Auditor appointment is done in the first Board meeting, which is held within 30 days of incorporation.

Ans – Once the Company’s name is approved; we must file Part B of the Spice+ form with all required attachments. If Forms and Documents are properly filled and submitted, MCA approves the company within 7 working days usually.

Ans – The proposed company name should be unique and not identical to the existing company name. Apart from this, MCA has provided a list of rules that should be considered before finalizing the Company’s Name.

#Terms and Conditions 

  • All documents must be provided by the client on time
  • Government portal downtime might cause delays