Private Limited Company Registration

Starting a business involves understanding and dealing with basic legal terms like liability protection to financing and more. Yet, interest in entrepreneurship is at an all-time high and that too in it, establishing a Private Limited Company is one of the highly endorsed methods to start up.

A Private Limited Company in India is administered by the Ministry Of Corporate Affairs(MCA) under the Companies Act, 2013 which lays down comprehensive provisions for running businesses in India.

Section 2(68) of the Companies Act,2013 defines a private company as: “Private Company” means a company having a minimum paid-up share capital as may be prescribed and which by its articles,

• Restricts the rights to transfer its shares
• Except in the case of One Person Company, it limits the number of its members to 200
• Prohibits any invitation to the public to subscribe to any securities of the company

This type of company puts limited liability on its shareholders with certain restrictions that are placed on the ownership.

REQUIREMENTS TO FORM A PRIVATE LIMITED COMPANY IN INDIA:

Features	Pvt. Ltd. Company
Definition	A legal entity with limited liability to the owners and shareholders
Minimum share capital	No requirement for minimum share capital
Members required	Min. 2- Max.200
Directors required	Min. 2 -Max 15
Authorized capital	1 lakh minimum
Board meeting	Within 120 days of the previous board meeting. Min. 4 board meetings to be held each year
Statutory Audit	Mandatory
Annual filing	Annual statement of accounts & annual return with the Registrar of Companies. These are filed in form AOC4 and MGT7.
Compliance	High
Liability	Limited
Transferability of shares	Can be transferred easily.It can only be restricted by the article of association
Foreign Direct Investment	Eligible via automatic and government route.
Company name	Should end with Pvt. Ltd.
Governance	Under Companies Act, 2013

STEPS FOR ONLINE REGISTRATION OF A COMPANY

Registration of a company may look extremely tedious for those trying to enter afresh into entrepreneurship. To simplify this, Filing Karo a prominent platform for online company registration is there to help you. Filing Karo makes the entire process of online company registration very handy and that too at a very nominal cost. which includes;

• Step 1: Acquisition of a Digital Signature Certificate (DSC) & Director Identification Number (DIN). Filing Karo helps you with DSC & DIN acquisition
• Step 2: Filing Karo helps you in choosing the name of your Company as per the availability.
• Step 3:Filing Karo assists with the name approval certificate.
• Step 4: Filing Karo package also includes drafting of MOA and AOA to register a Pvt. Ltd. Company
• Step 5: Filing Karo also assists in receiving PAN and TAN of your company.
• Step 6:Filing Karo experts take care of other procedural requirements such as stamp duty and registration fees in favor of your company.
• Step 7: To further assist you with the steps of company incorporation, Filing Karo experts help you in getting the company incorporation certificate.
• Step 8: ROC issues a certificate with a PAN and TAN.
• Step 9: Filing Karo would help you in opening the current bank account under the company’s name.

Documents Required for Company Registration

Identity and address proofs are required for registration of a Pvt. Ltd. company in India:

• ID Proof: PAN card or Passport (Foreign nationals & NRI)
• Address Proof: Ration card/ Aadhar Card/ Driving License/Voter ID
• Residence Proof: Bank statement/ telephone/ mobile bill/electricity/ gas bill of the premise
• Passport-sized photograph & specimen signature (blank document with signature [directors only])
• Notarized rental agreement
• NOC from the property owner
• A copy of the sale deed/property deed (for an owned property).

Documents Required for Company Registration in India

For Designated Directors

• Pan Card
• Aadhaar Card
• Bank Statement

For Registered Office premises

• Latest Electricity Bill
• No Objection Certificate from the Premises Owner
• Notarize rental agreement in English [or]
• Sale deed/Registery if property is you own the property

ADVANTAGES OF A PVT. LTD. COMPANY:

• Limited Liability: Liability of shareholders limited up to the amount of shareholding.
• Investor Friendly: Because of trasperance and regulations, investors prefer to invest in Privae Limited company
• Easy of formaiton: With all online process, its easy to form a Private limited company

KEY TERMS:

Director of a Private Limited Company:	Only an individual (living person) can be appointed as a Director in a company. A body corporate/ business entity can’t be appointed as a Director.A private limited company can have max. 15 Directors.
Digital Signature Certificate (DSC):	It is the digital equivalent of a paper certificate. It is issued by the certifying authority by which electronic documents can be signed, since all electronic documents are needed.
Director Identification Number (DIN):	DIN is a unique identification no. issued to the Director of a company upon application in form DIR-3 pursuant to sections 153 & 154 of the Companies Act, 2013.
Memorandum Of Association (MOA):	This is a legal document that entails the purpose of company formation. The company can undertake only those activities that are mentioned in the MOA. It helps the prospective shareholders in making the right decision while investing. MOA must be signed by at least 2 subscribers in the case of Pvt. Ltd. Company.
Articles Of Association (AOA):	This is a primary declaration that outlines the rules and regulations, including the process for appointing Directors and handling of financial records. Usually, AOA includes the company’s legal name, purpose, address, equity capital, hierarchy, financial provisions, and provisions regarding shareholder meetings.
Registered Office Of a Company	It is the official address of a company where any communication related to the company is sent. Every company needs to have a registered office w/i 30 days of its incorporation as per the Companies Act,2013.
Registered Office Of a Company	It is the official address of a company where any communication related to the company is sent. Every company needs to have a registered office w/i 30 days of its incorporation as per the Companies Act,2013.
Authorized capital vs paid-up capital:	AUTHORIZED CAPITAL PAID-UP CAPITAL Max. value of shares i.e., legally authorized to issue to shareholders. The amount that is actually paid by the shareholders to the company. A company is not authorized to issue shares beyond the authorized share capital. Paid-up capital can never be more than authorized capital but can be equal to it. Authorized share capital can be increased in the future by following the procedure mentioned in the Companies Act, 2013 Paid-up capital can be increased by issuing shares to existing shareholders or by Pvt. Placement to third parties. Authorized capital can’t be used in the net worth calculation of a company. Paid-up capital is used while calculating the net worth of a company.

Process and Steps in Registration of Private Limited Company in India

• 1

  Issuance of Digital Signature certificate(DSC)

  Take 1 working Day

  Digital Signature certificate would be issued for you.

• 2

  Director Identification Number

  Take 1 working day

  Director Identification Number is 8 digit unique identification number issues to directors by MCA(Ministry of Corporate affair).

• 3

  Name Reservation and Approval

  Take up to 4 days

  Once DIN and DSC is there, Filing Karo ComplianceServices professionals will run name availability check on the 2 names provided by you and will file for name approval in MCA(Ministry of Corporate affair).

• 4

  File For Incorporation Private Limited Company Registration

  Take up to 7 days

  Filing Karo experts will Draft MOA and AOA in consultation with you and incorporate your suggestions, once MOA and AOA is in place, Expert will fill Form in SPICe for the formation of the company. Along side the PAN and TAN would be Filled.