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Private Limited Company Registration India


Most incorporated entities in India are Private Limited Company as it have many benefits compared with other business structures. Companiesinn with over 10 years presents in online made company registration private limited simple and affordable to everybody. Now using our tool anyone can Register Company online. Below are some important points covering what is private company

PRIVATE LIMITED COMPANY

A 'Private Company' is a limited company formed with minimum of 2 members and 2 Directors. Maximum number of members in a Private Company is restricted to 200. 

The name of the company should end with the words 'Private Limited'. A 'Public Limited' company is the most common incorporated business organisation in India. It is generally called as a 'Private Company'.

COMPANY NAME

The name of a Private Limited company shall end with the words 'Private Limited'. Proposed Company Name shall comply with the Company Name Availability Guidelines under Companies Act 2013

There are TWO ways for reserving a name for a New Company.

a. RUN (Reserve Unique Name) is an easy and web-based application for reservation of a Company Name. The name approved under RUN Process is valid for a period of 20 days from the date of approval. In one application, Two names can be submitted for approval under RUN process. If the application is rejected, the another Two more names can be submitted again. If that also rejected by ROC office, a fresh application to be filled with fresh filing fee.

b. SPICe (Simplified Proforma for Incorporating Company Electronically) Incorporation Filing process is an integrated single point application for Reservation of Company Name, Allotment of DIN for Directors and Incorporation of a New Company along with allotment of Permanent Account Number (PAN) and Tax Collection and Deduction Number (TAN) to the New Company. Under SPICe application, only ONE name can  be submitted for approval.

SHARE CAPITAL

There is no minimum capital (Authorised or Paid up Capital) requirement for registering a company. However, the registration fee payable to the Registrar of companies depends on the different slabs of Authorised capital of the company.

The First Shareholders must bring the subscribed capital to the Company with in 60 days of Company Incorporation and the Company must issue share certificates to the subscribers.

REGISTERED OFFICE ADDRESS

Registered Office refers to the official correspondence address of a company or its principal place of business. The address of the Registered Office will be used for all official communications of the company.

How to Register a Company in India - Steps


Select Packages and place order with CompaniesInn

You will be directed to India's First and the State of the Art E-Lawyering Interview by CompaniesInn . Complete the online Interview and generate Company Registration Documents for execution by Shareholders and Directors.

Submit Executed documents to CompaniesInn

Execute the documents by Shareholders and Directors and submit to CompaniesInn with supporting such as Identity and Address documents, Registerd office Adress Proof and NOC and other additional documents.

RUN Application (Optional)

RUN (Reserve Unique Name) is a web-based application for reserving the Company Name.

The name approved under RUN Process is valid for a period of 20 days from the date of approval. Company Incorporation documents are to be filed within the validity period of Company Name.

Filing of Company Registration Documents with MCA

Company Registration filing consists of preparation and filing of the flowing E-Forms:

1. e-Form INC-32 – SPICe Application

2. e-Form INC-33: e-Memorandum of Association (SPICe MoA)

3. e-Form INC-34: e-Articles of Association (SPICe AoA)

All the documents executed and attested as per documentation requirements has to be attached to the e-Form INC-32 / 33/ 34 and the e-Forms to be digitally signed with the Digital Signature Certificate (DSC) of all the proposed shareholders /representatives.

Verification by the Central Registrar of Companies (CRC)

The CRC verifies the application and if found the documents are in order, the Central Registrar of Companies shall register the Company and issue the following:

1. Company Incorporation Certificate

2. DIN for Directors

3. Permanent Account Number (PAN)

4. Tax Collection and Deduction Number (TAN) to the New Company.

Advantages of Private Limited Company


Business Credibitlity

A limited company is the most accepted business organization in India as its structure is well known to the public.

Limited Liability

Like any other incorporated business, a limited company is a limited liability organization. The owner's liability is limited to the extent of shares held in the company and ends once he pays for the shares.

Protection of Personal Assets to owners

Since the liability of owners is limited, their personal assets are protected against business risk as the company's liability is not the owner's liability.

Perpetual Existence

Assets and liabilities of a company belongs to itself and do not belong to the shareholders. Hence, the company will continue to be in existence even if the owner changes

Can sue and be sued

A limited company is like an artificial person created by law. Like any other person, it can sue and be sued before the court of law. This means that if a company defaults, others can take legal action against the company and likewise, the company can tak

Documents Required


To get Company registered, you need to provide below documents. The documents can be submitted through online

ID&Address from Directors and Shareholders

Shareholders and Directors have to submit Identity Proof and Latest address proof

Acceptable Documents

  • Primary ID - Permanent Account Number (PAN)

  • Additional ID - Aadhaar Card or

  • Driving License or

  • Latest Address Proof: Telephone Bill or

  • Voter Identity Card

  • Passport or

  • Electricity Bill or

  • Bank Statement or

  • Bank Passbook with latest entries

Documents to be Signed by all SHAREHOLDERS

  • Application for Digital Signature Certificate (DSC)

  • Declaration by Subscribers & Director: INC-9

Documents to be Signed by all DIRECTORS

  • Consent to Act as Director: Form DIR-2

  • Details/Information for DIN

  • Declaration of DIN (If DIN is allotted already)

Registered Office – Address

  • No-Objection Letter from the owner of the Property

  • Address Proof

Additional Documents

The following documents are required on case to case basis:

  • NOC for Use of Name from Trademark owner

  • Resolution and NOC from an existing Company / LLP for user of similar names

  • Declaration for complying sectoral regulatory compliaces

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FAQ

Frequently Asked Questions on Company Registration

What is Directors Identification Number (DIN)?

Directors Identification Number (DIN) is an identification number issued by the Ministry of Corporate Affairs, Government of India, to Directors of a company or Designated Partners of an LLP.

How to Obtain a DIN?

New DIN will be allotted to a Director / Designated Partner while registeting a Company or LLP. Also, an Company / LLP can apply for a DIN for a proposed Director / Designated Partner.

How many Shareholder(s) and Director(s) are required for registering a Private Limteud Company?

Mimimun Number of 2 Shareholder and 2 Directors required for registering a Private Limtied Company/

Who can become a Shareholder / Director in a Company?

Shareholders could be Individuals, Companies or LLPs, but only individuals can become directors of the company.

What is Memorandum of Association (MOA)?

MOA is the charter document of a company. A company is created by registering a memorandum. MOA contains the name of a company, the state in which the registered office of the company is located, objectives, and its authorised capital. The MOA will be subscribed by the initial promoters of the company in their own handwriting. They will also have to write their name, father's name, residential address, occupation and the number of shares they agree to subscribe in the company. The MOA should also bear the signature of the witness who knows the subscribers.

What is Articles of Association (AOA)?

AOA contains rules and regulations for the management of a company's internal affairs and conduct of its business. It defines the relationship of company between its members and directors and relation between members and directors. It also describes powers of directors. Further, the AOA describes the rights and duties of its members as well as the duties and responsibilities of its directors. In case of a private limited company, the AOA will contain the restrictions of transfer of shares, if any. Also, AOA usually contains the names of first directors of a company.

The AOA will be subscribed by the initial promoters of the company in their own handwriting. Promoters will have to write their names, father's name, residential address, and occupation. The AOA should also bear the signature of the witness who knows the subscribers.

What is Digital Signature Certificate (DSC)?

A digital signature is a type of asymmetric cryptography used to simulate the security properties of a handwritten signature on paper. Digital signature schemes normally give two algorithms, one for signing that involves the user's secret or private key, and one for verifying signatures that involves the user's public key. Digital signatures have often confused with scanned copies of a physical written signature, which do not have any legal backing for authentication of electronic documents.

What is Registered Office?

Registered Office refers to the official correspondence address of a company or its principal place of business. The address of the Registered Office will be used for all official communications of the company. The company shall affix the name and address of its registered office outside every office or place of business in a prominent position. Also, the name and address of its registered office should be mentioned in its business letters, bills and other official publications.

Whether the Registered Office can be changed?

Registered Office of the company can be shifted from one place to another in the same state or from one state to another after complying with legal requirements.

Can the details of subscribers to the MOA & AOA can be amended?

The details of subscribers to the MOA & AOA cannot be amended or changed at any point of time during the life of the company, as it constitutes the document giving birth to a company. Subsequent changes in the shareholding or directorship of the company should be reflected in its internal records and will not affect the subscriber details in the MOA & AOA

What is Authorised Capital?

Authorised Capital or Registered Capital of a company is the upper limit of capital that a company can issue shares and collect money from shareholders. Company registration fee is payable to ROC and will be calculated on the basis of Authorised Capital. There is no requirement as to minimum Authorised Capital for registration of Company.

What is paid up capital?

Paid up capital of a company refers to the amount of capital actually brought in by the shareholders to the company. Subscribers to the It is not necessary that subscribers should bring in the subscribed capital immediately after ncorporation. However, at the time of closing accounts for the first financial year, there should be a mimimum paid up capital of Rs.1,00,000.

What is subscribed capital?

Subscribed capital refers to the amount of capital agreed to be brought in by the shareholders to the company.

What is Corporate Identification Number (CIN)

CIN is the number allotted to a company registered in India by the Ministry of Corporate Affairs, Government of India. CIN is a 21-digit number that contains the information such as status (listed / unlisted), NIC code of business activity, state of registration, year of registration, private or public and the sequential registration number in the respective state (for example, U74110KA2008PTC046914)

Can a Private Company Accept Deposits?

Private company cannot accept deposits from the public. However, it can accept loans and deposits only from its shareholders, directors and directors' relatives subject to conditions.

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