In Mar 2020, a recent update has been introduced in which the Company Registration should be done on a new MCA portal. It means a Public, Private, and One Person company registration will be done on the new MCA portal. One of the famous legal business structure in India is a Private Limited Company Registration. If anyone wants to start their company, make sure you get Online Company Registration from the experts. Scroll down to check more information regarding the process of company registration and the benefits of Private Limited Company Registration in India.
Advantages of Private Limited Company Registration
After the completion of the company's registration, you can avail all the advantages of the registration, as mentioned below.
- Tax benefits are available.
- Separate legal entity- In which the company is separated from the owner of the company, and it will come under the Operation of Law. It doesn’t matter who will be the next future owner, but the company will run forever.
- Loans can be quickly issued on the name of the registered company, and it will be beneficial for the company to make investments in different companies.
- A Registered company can sue or be sued on its own name.
- In a corporate environment, it becomes easy to distinguish from others.
Eligibility for Private Limited Company Registration
Following are the eligibility criteria’s for Private Limited Company Registration:
- For Private Limited Company registration it requires a minimum of two Directors / Shareholders.
- Unique Name: The name of the company should be unique, and it must not be similar to any other existing company.
- Indian Resident: At least one of the company's directors needs to be an Indian resident.
- Registered Office: You should have a registered office; it can be a rented home also.
Checklist for Private Limited Company Registration
Following are some checklist for registering a private limited company in India:
- Minimum Members:
For the Private Limited Company Registration, a minimum of two persons are required, and a maximum of 200 members/shareholders are required as per the Companies Act 2013.
- Resident Director:
For registering the Private Company, a minimum of two directors are required. Each director should have their Director Identification Number (DIN) which is issued by the MCA (Ministry of Corporate Affairs) and one of the company's director must be an Indian citizen, it means the director should have stayed in India not less than 182 days.
- Unique Name of the Company:
This is the most necessary part of company registration. The name of the company must be unique and identical. It contains three-part, i.e. the name, activity and private limited company, and it is mandatory for all the private companies to add the private limited company word at the end of the company's name.
- Address of the registered office:
The owner of the company must provide the permanent address of the company at the time of the company's registration in India because without this, and the company does not get register. It does not require to have a commercial space for registered office; even a rented house can become a registered office.
- Obtain DSC:
The registration process is online, so all the documents are submitted online, and for that, the company must have a DSC (Digital Signature Certificate) which is used to check the authenticity of all the documents.
What are the essential documents required for Private Limited Company Registration?
Without the proper documents, the registration of the company cannot be done, and you can’t avail any benefits of Private Limited Company registration.
Check the lists of documents that are accepted by the Ministry of Corporate Affairs, which are mentioned below.
- Copy of PAN Card or Passport of directors (if the director is NRI or Foreign National).
- Two latest passport size photo of the director of the company.
- Aadhar card/Voter Id/Driving License of all the proposed directors.
- Rent agreement or property papers for address proof.
- Electricity bill/water bill/telephone bill of the registered office.
- No Objection Certificate (NOC) from the owner of the property.
- City’s name where the registered office is situated.
- Submit Sale Deed and ownership in case your own premise.
- Submit affidavits for non-acceptance.
- Submit the details regarding the occupation of directors and shareholders.
- Provide contact details and email address of the directors and shareholders.
What is the process of Private Company Registration in India?
Following the detailed process of Private Limited Company Registration in India:
Step: 1 Search Name of the company
Now, the name can be applied directly through incorporation Form SPICe+.
Step: 2 Obtain DSC (Digital Signature Certificate) and DIN (Director Identification Number)
For Company formation, DIN and DSC are mandatory, and digital signatures are required because the company registration process is online, and the form requires a digital signature. Digital Signature is compulsory for all the applicants whose name is mentioned in MOA and AOA.
Step: 3 File MOA (Memorandum of Association) and AOA (Article of Association)
MOA and AOA are vital documents for a Private Limited Company Registration. MOA defines the scope and vision of the company, whereas AOA represents the rules and regulations of the company.
Step: 4 Apply for TAN and PAN of the company
In this step, you can apply PAN and TAN for the company, and it can be done through the single SPICe form.
Step 5: Certificate of Incorporation
After the verification of all the documents, the registrar will issue the certificate of incorporation for the Private Limited Company. After that open a current bank account on the company name.
Conclusion
It is clear that the company registration in India helps in promoting the startups and also gives an extra advantage over others who have not registered their company. So, it is really important to get your company registered online to avail of all the benefits of private limited company registration.
