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Private Limited Company Registration in India: Process, Fees, Time taken, Documents, Benefits

India (भारत) is world 5th largest economy and is the fastest gowing economy in the world. The India is witness record FDI invetsment and becoming the business hub of the world. There are alot business which getting set-up in India. As per our estimates, the number of company registration in India is in the range of India is 144000-176000 in a year.

Private limited or well known as Pvt Ltd Co is the most popular organised business structure in India. Due to its corporate governance, stakeholder's trust, business friendly government policies, as well as protection to directors through limited liability it has become the first choice of the entrepreneurs. Private limited company gets approval of incorporation from the Ministry of corporate affairs (MCA) after proper documentation checks that gives it legal recognition worldwide. Any person whether Indian or Non-Resident Indian can register private limited company in India after meeting certain eligibility criteria.

Private limited Company gets its own identity after registration which means it has its own separate legal independent status. Pvt ltd company registration can have multiple legal business objects as defined in its Memorandum of Association (MOA) and its Articles of Association (AOA). At BizFoc, we understand your business requirements, offers complete end to end support to do company registration at best value for money.

What is a Private Limited Company?

A Private Limited Company is mainly a type of business entity that is privately owned and has limited liability. Private Limited Company registration has become an ideal structure for businesses that seek to protect owner's personal asset while enjoying the benefits of a separate legal entity and limited liability. It is particularly suitable for small to medium-sized enterprises that do not need to raise capital from the public. Hence, it is one of the most common forms of business structure used by small and medium-sized enterprises (SMEs) in India.

What are the main features of Private Limited Company Registration?

The important features of Private Limited company registration are as follows:

• Limited Liability: The shareholders' liability is limited to the amount they have invested in the company. Personal assets are generally protected from business debts and liabilities.
• Separate Legal Entity: The company is recognized as a distinct legal entity separate from its owners. It can own property, incur debts, sue, and be sued in its own name.
• Perpetual Succession: The company continues to exist regardless of changes in ownership or management. The death or departure of shareholders or directors does not affect its continuity.
• Transfer of Shares: Shares in a Private Limited Company are not freely transferable. They can only be transferred with the consent of other shareholders and often come with restrictions outlined in the company's Articles of Association.
• No Public Offering: Private Limited Companies do not offer their shares to the general public. They cannot list on stock exchanges or raise capital through public offerings.

Eligibility for having Private Limited Company Registration

In India, a Private Limited Company is governed by the Companies Act, 2013, and administered by the Ministry of Corporate Affairs (MCA). Below are the eligibility criteria to register a Private Limited Company in India:

• Minimum and Maximum Number of Members: A Private Limited Company must have a minimum of 2 members (shareholders) and can have a maximum of 200 members. The company also must have 2 directors. At least one director must be a resident of India (i.e., has stayed in India for at least 182 days in the previous calendar year).
• Unique Name: The name of the company should be unique and not similar to any existing company or trademark. It must include "Private Limited" at the end.
• Registered Office Address: The Company must have a registered office address in India. This is where official communications and notices can be sent.
• Capital Requirements: There is no minimum paid-up capital requirement, but the authorized capital should be at least INR 1 lakh. The company can decide the amount based on its business needs.

Documents required for Private Limited Company Registration

It is important to understand the documents required for private limited company registration for incorporating business. The documents required are as follows:

• From Directors/Shareholders:
  1. Passport-size photograph
  2. Identity proof - PAN card. Passport mandatory for foreign nationals
  3. Address Proof-Aadhaar card or voter ID or driving license.(Any One)
  4. Residential Proof – Latest Bank Account Statement/ Telephone Bill /Electricity Bill/ Any other utility bill – Gas Bill, Water bill etc. (Not older than 2 Months) having own name and address.
  5. Email id and Mobile no to be used in the incorporation forms. (Marketing emails will be received on this as data is available publicly on MCA portal)
• For Register Office Address proof:
  • Any of the utility bill (i.e. Electricity Bill/Gas Bill/Telephone Bill/Mobile Bill not older than 2 months) with complete address
  • Proof of ownership (if the property is owned by the company or shareholders) or rent agreement, NOC from the property owner if the premises are rented.

Process for Private Limited Company Registration

The private limited company registration is completely online nowadays. The business owners need not physically visit the MCA or any other office for getting the company registration. The process for Private Limited Company Registration is as mentioned below:

Step 1: Obtain Digital Signature Certificate (DSC)

The very first step is that all directors must have a DSC i.e., Digital Signature Certificate, which is used for signing electronic documents. It can be obtained from certifying authorities like eMudhra, Sify, etc.

Step 2: Director Identification Number (DIN)

The second step is to apply for DIN i.e., Director Identification Number for all proposed directors. This can be done through the SPICe+ i.e., (Simplified Proforma for Incorporating Company Electronically) form.

Step 3: Name Reservation

Apply for the reservation of the company name through the RUN (Reserve Unique Name) service or along with the SPICe+ form. Ensure the company name is unique, original, and distinct from the name of any other business. It must be trademark-worthy, not infringing the trademark rights of others, and adhere to the naming guidelines provided by MCA.

Step 4: Prepare MOA and AOA

Draft the Memorandum of Association (MOA) and Articles of Association (AOA). These documents outline the company's objectives, rules, and regulations.

Step 5: File Incorporation Forms

Fill and submit the SPICe+ form (INC-32) along with the MOA (INC-33) and AOA (INC-34) to the Registrar of Companies (ROC). This form also includes the application for PAN and TAN for the company.

Step 6: Payment of Fees

Pay the required registration fees and stamp duty, which can vary based on the authorized capital of the company and the state in which it is being registered.

Step 7: Certificate of Incorporation

After verification, and upon satisfaction of all the documents, the ROC will issue a Certificate of Incorporation. This certificate includes the Company Identification Number (CIN) and confirms that the company is legally registered.

Advantages of Company Registration in India

The major benefits of private limited company registration in India include:

• Protection of Personal Assets: Shareholders' personal assets become protected from business liabilities, providing financial security.
• Professional Image: Having a Private Limited Company enhances the credibility of the business, which can attract customers, suppliers, and potential investors.
• Ease of Raising Capital: Although shares cannot be offered to the public, a Private Limited Company can still raise capital through private placements, venture capital, and other private investors.
• Management and Ownership Separation: The management of the company is separate from its ownership. Shareholders elect directors to manage the company on their behalf.
• Tax Benefits: Private Limited Companies often benefit from corporate tax rates, which can be lower than individual income tax rates, and may also qualify for various tax incentives and deductions.

How to Check Company Registration Online?

To check company registration details online in India, you can use the Ministry of Corporate Affairs (MCA) website. Here is a step-by-step guide:

• Go to the official website of the Ministry of Corporate Affairs: MCA Website.
• On the homepage, find and click on the 'MCA Services' tab in the menu.
• Under the 'MCA Services' drop-down, find and click on 'View Company/LLP Master Data'.
• You will be directed to a new page where you need to enter the company CIN (Corporate Identification Number) or the name of the company.
• Enter the 'Company Name' or 'CIN' in the respective field.
• Enter the CAPTCHA code shown on the page.
• After entering the required details and CAPTCHA code, click on the 'Submit' button.
• The next page will display the company’s registration details including its name, registration number, date of incorporation, company type, and more.
• For more detailed information, you might need to pay a small fee to download official documents like the certificate of incorporation, balance sheets, annual returns, etc.

What is the Cost of Online Company Registration in India?

The fee for registering a private limited company in India is around ₹6,499 (Including government fee). The breakdown of the fees is as follows:

Time Taken for Private Limited Company Registration in India

The duration of private limited company registration in India is 7-10 working days. Name is generally approved in 2-3 working days and company incorporation is approved in 3-4 working days. Breakdown of time taken by us:

1. Name Reservation Application - Within 4 hours!
2. Digital Signature Process - 1 working day
3. Company Incorporation Application - 2 working days

Post Compliance of Company Registration in India

After the company is registered, there are several compliance requirements that must be met:

• Business Commencement: The Company’s Shareholders must deposit the subscription amount specified in the MoA within 180 days of Company Incorporation and the company must open a current bank account.
• Appointment of an Auditor: Within 30 days of Private Limited Company Registration, every company in India must appoint a practicing, certified & registered CA.
• DIN-KYC: Yearly, individuals who have a DIN should undergo a DIN-KYC process. At the time of Private Limited Company Registration process, the Company can get the DIN. This helps to verify the phone number & email id on file with the Ministry of Corporate Affairs (MCA).
• Annual Filings with MCA: Every Financial Year, the Ministry of Corporate Affairs must get a copy of the Financial Statements from each company incorporated in India. A Company that registered between Jan & Mar may elect to include the 1st annual return in the MCA Annual Filing for the following fiscal year. Form AOC-4 & Form MGT-7 are the parts of annual return. Also, the Company’s Directors & a working professional must sign both of these documents digitally.
• ITR Filing: Every Financial Year, companies should file the ITR using Form ITR-6. The business should file the Income Tax before the deadline for each Financial Year, irrespective of the Incorporation date. The ITR of a Company must be digitally signed using the DSC of the Director.

Why Choose BizFoc for your Private Limited Company Registration?

BizFoc is a one-stop solution that provide guidance on to register your company on the MCA portal. Our team consist of qualified Chartered Accountants, Lawyers, Company Secretaries who gives consultation in business incorporation services. We simplify the process, advise on business requirements, and support business beyond starting the business. Start now with BizFoc as your trusted business partner for guidance related to legal and business registration services!

Conclusion

In India, from new startups to well-established & largely profitable entrepreneurs, choose this business structure as the ideal business entity. We offer cost-effective service for Private Limited Company Registration in India. Our professionals will handle all legal company incorporation documentation & procedure and ensure compliance with all the regulations laid out by the Ministry of Corporate Affairs (MCA). Once your Private Limited Company in India is incorporated as per the Companies Act, you're set to take your business to new heights.