Overview on Private Limited Company Registration

Once you have decided to start a company, the first and foremost requirement is to select a favorable business structure to register the company in India. The choice of the right business structure will affect many factors starting from your business name, your liability towards your business, and also how to file your taxes and statutory dues. The financial and operational success of the company depends on the business structure, according to the process of online company registration in India.

One of the most cited legal structure options for businesses in India is a Private Limited Company Registration. Normally, Startups and growing companies prefer to have online Company Registration as a private Limited company because it allows outside funding to be raised easily. It limits the liabilities of the shareholders and also enables them to offer Employee Stock Options (ESOP) to attract top talents. If you want to start a company in India, make sure you get Online Company Registration from our experts' help.

There are many benefits of getting a private limited company registration:

Private Limited Company can have a minimum of two members and a maximum of fifty members.

Directors have limited liability to creditors.

If there is any default, the banks or creditors need to sell off only the company's assets but not personal assets.

Benefits of Pvt Ltd Company Registration in India

A registered company avails many benefits. Company Registration makes a company genuine and increases the authenticity of your business. Some of the benefits are discussed below:

Loans can be issued in the name of the company and to make investments in different companies.

It will be considered as a separate legal entity.

Directors will have limited liabilities. They will not be personally liable for the company's affairs.

Tax benefits are available to the directors of the company.

Right from the time of establishment, the power to hold and dispose of the property is with the company.

The company will build goodwill for its brand.

With the help of company body structure, there can be a global reach.

To set up a platform to deal with suppliers, industries, vendors, and customers.

A registered company can sue or be sued in its name. The name of the entrepreneur will not be used here.

It is easy to distinguish oneself from others by entering into a corporate environment.

You can collect money from the general public to make an investment in the company.

Checklist for Registering a Private Limited Company in India

Minimum 2 Person/Directors

To register as a private Limited company in India, a minimum of two persons is required, who must act as shareholders or directors of the company. The highest number of shareholders a company can have is 200, and a company can have up to 15 directors.

Resident Director

At least one director of the company needs to be a resident in India. Any person if he or she stays in India for at least 182 days during the financial year irrespective of their citizenship shall be deemed to be a citizen of India.

Capital Requirement

Investment must be made as per the necessity of the business, and there is no least capital requirement for a company. However, while measuring capital, even the Government fee is added.

Unique Name of Company

The suggested name of the company must not be similar to any existing company or LLP. Moreover, you also need to verify the trademark registry to ensure that the name is not similar to any registered or applied trademark in India.

Registered Office

The registered office does not need to have a commercial space. Even a rented home can become a registered office, after obtaining an NOC from the landlord.

Process for Private Limited Company Registration in India

Company Registration in India promotes the progress of the startups and also gives an extra advantage over those who have not registered. The Ministry of Corporate Affairs manages the company registration steps along with the rules and regulations framed in accordance with the law.

The process for getting Online Company Registration is mentioned below:

Step1 Application for Digital Signature Certificate Step2 Application for Director Identification Number Step3 Checking and then making an application for name availability. Step4 Filing of MoA and AoA online to register as a Private Limited Company Step5 Apply for PAN and TAN of the company. Step6 Certificate of Incorporation by ROC with PAN and TAN Step7 To open a Current Bank Account in the name of the company.

Why Should You Check the Name of Company Before Doing Pvt Ltd Company Registration?

It is essential to ensure that the name of the company has not been taken by any other legal entity. We will help you in searching the name of the company and also checking the availability of any particular name in India against the MCA and trademark database. Our recommendation to businesses is to have at least three to four alternative names during the approval stage of a Private Limited Company Registration. The final permission is granted by the Ministry of Corporate Affairs (MCA) to approve the name based on the availability of rules and regulations. It is not necessary to have the name of your company as a brand name. However, if you want to get a trademark over your brand name, check if it has already been taken at http://www.ipindia.gov.in/, or we will help you in checking the brand name availability. In case the brand name is trademarked by some other company, you will need a no-objection certificate from the owner to have it approved in your name. Enterslice can help you through this difficult process.

Documents Required for Online Private Limited Company Registration

A Private Limited Company Registration in India cannot be done without a proper identity proof and address proof. All the directors and shareholders of the company needs to produce identity proof and address proof for the incorporation of the company. Below is the list of documents needed that are accepted by the Ministry of Corporate Affairs (MCA) to complete the online company registration process in India.

Copy of PAN Card or Passport of directors (Foreign Nationals &NRIs)

2 Passport size photograph of directors of the company

ID proof such as Aadhaar Card or Voter identity card of directors

Copy of address proof rent agreement or property papers

Electricity or Water bill of company place

Landlord NOC in case of rented office

In the case of personal property, a copy of sale deed or property deed

For foreign nationals, a notarized copy of the passport must be submitted mandatorily. Only valid documents need to be submitted. The residence proof documents like a bank statement or electricity bill must be less than two months old.

Registered Office Proof

To get company registration in India, the company must have a registered office. In order to prove the functionality of the registered office, a recent copy of the electricity bill or the property tax receipt or water bill must be submitted. Along with the rental agreement, utility bill, or the sales deed and a letter from the landlord with her/his consent to be used to register the particular address as the registered office.

Importance of Choosing a Right Structure for Company Registration

Company Registration must be done carefully as your income tax returns depends on the selected company structure. During the registration of your company remember that different structures have different levels of compliances to be met. For instance, a sole proprietor has to register only an income tax return. A company has to register income tax returns with the annual returns with the ROC or registrar of companies.

A company must mandatorily audit its book of accounts all year. . Hence, it is suggested to choose the right company structure while considering company registration. While some company structures are very investor-friendly, investors will always favour a legal and verified company structure.

Comparison of Company Structures

Particulars Private limited Company Limited Liability Partnership One Person Company Recommended For Early-stage entrepreneurs /Growing businesses Professional service firms Small business and owned by a single promoter Credibility High Moderate Low Raising Capital Easy Moderate Difficult Employee stock option Yes No No Business growth High Moderate Low Liability Limited Limited Limited Dividend Tax Yes No No

Recent updates

Mar 9, 2020- SPICEe+ Form requires Mandatory Registration of EPFO & ESIC

After the introduction of SPICe+ (e-form) for incorporation of company, registrations for EPFO and ESIC shall be mandatory for all the registered organizations, and none shall be separately issued by the respective agencies.

Mar 06, 2020- Company Registration must be done in a new MCA portal

A Public, Private, and one person company registration in the EPFO, ESIC will be done on the new MCA portal. It simplifies the registration process by using a new web form SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus), integrating ten services from various departments.

How Enterslice helps you to get Company Registration