WHAT IS A PVT LTD COMPANY REGISTRATION?

A private limited company (Pvt Ltd) is a type of business entity that limits the liability of its shareholders and restricts the transferability of shares. This structure is commonly used by small to medium-sized businesses as it offers several advantages, such as limited liability protection and easier access to funding.

DIFFERENT TYPES OF COMPANY REGISTRATION IN INDIA

1. One-Person Company (OPC): This type of registration is suitable for individual entrepreneurs who want to start their own business with limited liability. Only one person is required to form an OPC, who acts as both the director and shareholder.
2. Limited Liability Partnership (LLP): This type of registration combines the benefits of a partnership and a company, offering limited liability to its partners. LLPs are commonly used by professional service providers and small businesses.
3. Public Limited Company: A public limited company is suitable for larger businesses looking to raise capital from the public. Shares of a public limited company can be freely traded on the stock exchanges.
4. Section 8 Company: A section 8 company is a type of organization that is formed to promote charitable activities, social welfare, and other non-profit objectives. These companies do not distribute profits to their members and are regulated by the Companies Act, of 2013.

HOW TO REGISTER A COMPANY IN INDIA?

1. Obtain a Digital Signature Certificate (DSC): The first step in the company registration process is to obtain a digital signature certificate for the directors of the company. This is required for filing the necessary documents online.
2. Obtain Director Identification Number (DIN): Next, the directors of the company need to apply for a Director Identification Number (DIN) from the Ministry of Corporate Affairs. This unique number is required for all directors to be able to sign documents electronically.
3. Reserve a Company Name: The next step is to reserve a unique name for the company. The name should not be similar to any existing company name and should comply with the guidelines provided by the Ministry of Corporate Affairs.
4. File Incorporation Documents: Once the company name is approved, the next step is to file the necessary incorporation documents with the Registrar of Companies (RoC). These documents include the Memorandum of Association (MOA) and Articles of Association (AOA) of the company.
5. Obtain Certificate of Incorporation: Once the RoC verifies all the documents and approves the company registration, a Certificate of Incorporation will be issued. This certificate officially establishes the company as a legal entity and allows it to start its operations.
6. Apply for PAN and TAN: After obtaining the Certificate of Incorporation, the company needs to apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. These numbers are required for tax purposes.
7. Open a bank account: The final step in the company registration process is to open a bank account in the name of the company. This account will be used for all financial transactions related to the business.

Overall, registering a private limited company in India involves several steps and requirements. It is advisable to seek professional assistance from a chartered accountant or company secretary to ensure compliance with all legal regulations and a smooth registration process. Additionally, it is important for entrepreneurs to carefully consider the type of company structure that best suits their business goals and requirements before proceeding with the registration process. By following the necessary steps and seeking expert guidance, entrepreneurs can successfully register their private limited company in India and start their business operations legally and efficiently.

DOCUMENTS REQUIRED FOR COMPANY REGISTRATION

1. Identity Proof: Copies of the identity proof of all directors and shareholders, such as Aadhar card, passport, or driver’s license.
2. Address Proof: Copies of the address proof of all directors and shareholders, such as utility bills, bank statements, or rental agreements.
3. Passport Size Photographs: Recent passport-size photographs of all directors and shareholders.
4. Memorandum of Association (MOA) and Articles of Association (AOA): These documents outline the objectives and rules governing the company and need to be filed with the Registrar of Companies.
5. Declaration of Compliance: A declaration stating that all requirements of the Companies Act, 2013 have been complied with.
6. Registered Office Address Proof: Documents proving the registered office address of the company, such as rent agreements or utility bills.
7. Digital Signature Certificate (DSC): DSCs are required for signing electronic documents during the registration process.
8. Director Identification Number (DIN) Application: Application forms for obtaining DIN for all directors of the company.
9. NOC from Landlord: If the registered office is on rented premises, a No Objection Certificate ( NOC) from the landlord allows the company to use the premises as its registered office.
10. Board Resolution: A resolution passed by the board of directors authorizing the registration of the company.

COMPANY REGISTRATION FEES, COSTS, & CHARGES

1. Government Fees: The government fees for registering a private limited company typically include the fees for obtaining the Certificate of Incorporation, PAN, TAN, and other necessary registrations. These fees can range from a few thousand rupees to a few lakh rupees depending on the authorized capital of the company.
2. Professional Fees: Entrepreneurs may choose to hire a chartered accountant or company secretary to assist with the registration process. The professional fees for their services can vary based on the scope of work and expertise required. It is advisable to obtain quotes from multiple professionals and compare their fees before making a decision.
3. Stamp Duty: Stamp duty is payable on the MOA and AOA of the company and varies based on the authorized capital of the company and the state in which it is registered.
4. Digital Signature Certificate (DSC) Charges: DSCs are required for signing electronic documents during the registration process and can cost anywhere from a few hundred rupees to a few thousand rupees per DSC, depending on the service provider.
5. Director Identification Number (DIN) Charges: There is a nominal fee for obtaining DIN for all directors of the company, which typically ranges from a few hundred rupees to a thousand rupees per director.

BENEFITS OF COMPANY REGISTRATION

1. Limited Liability Protection: One of the primary benefits of registering a private limited company is that the liability of the shareholders is limited to the amount they have invested in the company. This means that their assets are protected in case of any legal or financial liabilities incurred by the company.
2. Credibility and Trust: Registering a company adds credibility to the business and can help build trust with customers, suppliers, and investors. It shows that the company is a legitimate entity operating within the legal framework.
3. Easy Access to Funding: Registered companies have easier access to funding from banks, financial institutions, and investors. They can also issue shares to raise capital for business expansion.
4. Perpetual Existence: A registered company has perpetual existence, meaning it continues to exist even if the directors or shareholders change. This provides stability and longevity to the business.
5. Tax Benefits: Private limited companies are eligible for various tax benefits and incentives provided by the government, which can help reduce the overall tax liability of the company.
6. Separate Legal Entity: A registered company is considered a separate legal entity from its owners, which means that it can enter into contracts, own property, and sue or be sued in its name. This protects the owners’ assets and ensures that the business operations are distinct from their personal affairs.
7. Brand Protection: Registering a company also helps protect the brand name and logo of the business by preventing others from using similar names or trademarks. This can help in building a strong brand identity and preventing any potential legal disputes in the future.

MINIMUM REQUIREMENTS FOR PVT. LTD. REGISTRATION

1. Directors: A private limited company must have a minimum of two directors, and at least one of them must be a resident of India. The directors must be individuals and not entities.
2. Shareholders: A private limited company must have a minimum of two shareholders and can have a maximum of 200 shareholders. The shareholders can be individuals or entities, and there is no restriction on the nationality of the shareholders.
3. Registered Office: The company must have a registered office in India where all official communications and notices can be sent. This office address must be valid and accessible to the public during normal business hours.
4. Authorized Capital: The company must have an authorized capital of at least Rs. 1 lakh, which can be increased at any time by filing the necessary forms with the Registrar of Companies.
5. Memorandum and Articles of Association: The company must draft and file its Memorandum and Articles of Association, which outline the objectives of the company, its internal rules, and regulations, and the rights and duties of its shareholders.
6. Company Name: The company must choose a unique name that is not similar to any existing company name and complies with the guidelines set by the Ministry of Corporate Affairs. The name must also end with “Private Limited” or “Pvt. Ltd.” to indicate its type of incorporation.
7. PAN and TAN: The company must obtain a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department for tax compliance purposes.