Private Limited Company Registration in Gurgaon

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 owners' personal assets 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 many countries.

Minimum Requirements to get registered as Private Limited Company

Shareholders

• Minimum: A minimum of 2 shareholders is required to form a Private Limited Company.
• Maximum: The maximum number of shareholders is typically limited to 200. This cap helps maintain the company's private status.

Directors

• Minimum: At least 2 directors are required. In many cases, the same individuals can be both shareholders and directors.
• Maximum: The maximum number of directors can vary by jurisdiction, but often it is around 15, which can be increased with special resolutions if allowed by law.

What are the main features of Private Limited Company Registration?

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

• 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.

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, Aadhaar card, voter ID, and driving license. Passport mandatory for foreign nationals.
  3. 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.
  4. 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 Gurgaon

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

• 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.

How to Check Company Registration Online?

To check company registration details online in Gurgaon, 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 Gurgaon?

Incorporating a private limited company in Gurgaon costs around ₹6000 (Including government fee). The breakdown of the fees is as follows:

Time Taken for Private Limited Company Registration in Gurgaon

The duration of private limited company registration in Gurgaon 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 Gurgaon

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.

Frequently Asked Questions