WHAT IS A PRIVATE LIMITED COMPANY?
For an entrepreneur to establish his/her business, the most prominent form of Legal Structure or corporate entity is Private Limited Company. If you wish to start a venture, then getting your company registered comes in priority. This company registration is governed by the Companies Act, 2013 & Companies Incorporation Rules, 2014.
In India, many-a- start-up businesses, register their companies as a Private Limited Company registration online as there are several benefits like ease in incorporation, ease in raising funds, ease in finding investors, separate legal identity, limits the liabilities of its shareholders, business recognition etc.
A minimum of 2 directors and 2 shareholders are required for the Private Limited Company Registration Online. Recently, the Ministry of Corporate Affairs (MCA) has done some major changes and made the process of registering a Private Limited Company very simple and 100% online. Now, you can register your dream company from the comfort of your home. As of November 2020, over 20 lakhs companies have been registered in India and among them, around 13 lakh companies are still active.
Vakilgiri helps thousands of start-ups each year to register themselves as a Private Limited Company and the process of incorporation takes less than 10 days. We have a dedicated team of professionals who takes you through the process like a joyride.
In this article, we will be focussing on all the things related to the Private Limited Company Registration Online, like, documentation required, advantages of forming a Pvt. Ltd. Company, steps for incorporation.
ADVANTAGES OF PRIVATE LIMITED COMPANY REGISTRATION?
1. No Minimum Capital Requirement
For Online Company Registration in India, there is no minimum capital requirement as per Companies Act, 2013. Thus, you can form your company with any authorized share capital.
Having your company registered as a Private Limited Company gives more credibility to the investors. All the information is provided on a public database thus making it more authentic and trustworthy.
3. Ease in Fund Raising
Since, this entity is highly credible, there is an ease in raising funds to expand the business of your company. You can raise funds from Venture Capitalists or Angel Investors.
4. Separate Legal Existence
Once your Private Limited Company registration online is complete, a separate legal entity is formed. This separates itself from its directors and shareholders. Thus, the assets and liabilities of directors/shareholders are different to that of the company’s
5. Owners’ Limited Liability
In case of any unforeseeable distress, the personal assets of directors or shareholders will not be used to pay up the debts of the company or vice versa. Thus, a Private Limited Company gives its owner/s a limited liability.
6. 100% Foreign Direct Investment
Upto 100% FDI is allowed in a Private Limited Company Registration, which means, any Foreign Entity or person can invest in your company.
Documents for a Private Limited Company Registration Online :
Below are the private limited company registration documents required at the time of incorporation:
1. PAN Card
PAN Card of shareholders and Directors are required.
If either of the shareholder or director are of foreign nation, then they must provide a valid passport.
2. Identity Proof
For Identity Proof of Shareholders and Directors, Aadhar card and Voter ID/ Passport/ Driving License are required.
3. Address Proof
As an Address Proof, latest Telephone Bill or Electricity Bill or Bank Account Statement (not more than 2 months old) of Shareholders and Directors are required.
Latest Passport size photograph of all the Shareholders and Directors is required for a Private Limited Company Registration Online.
5. Business Address Proof
Latest Electricity Bill or Telephone Bill (not older than 2 months) of the registered office address is required.
6. NOC from owner
No Objection Certificate (NOC) from the owner(s) of the registered office (if any) is required.
In case of an NRI or Foreign Nationale, documents of director (s) must be notarized or apostilled. (There are separate charges of registration in such cases).
Steps for Registering a Private Limited Company in India
The process of Company Registration in India is 100% online and can be summed up in the following steps:
1. Application of DSC & DIN :
All the documents that needs to be submitted to the MCA for your Online company registration are in online mode, thus it is mandatory for all the directors and shareholders to have their respective DSCs. Digital Signature Certificates are the online copy of your signature that are used for signing the documents while incorporating your company.
DIN or Director’s Identification Number is a unique number which is allotted by the Ministry of Corporate Affairs (MCA) to all the directors of the company.
2. Name Approval :
For an entrepreneur, the first step towards starting his/her venture starts with finding a suitable and apt name for their company. It should be crisp & can represent the nature of your business. MCA requires atleast 3 unique names for your Private Limited Company and allots the one which is available or is not taken.
This process takes 1 day to complete.
3. MOA & AOA submission:
After your given Company’s Name is approved by the MCA, you are required to draft an MOA (Memorandum of Association) and an AOA (Article of Association). Incase you find any issues while formulating the MOA & AOA, you can always seek help from Vakilgiri’s professionals who have helped thousands of entrepreneurs like you in registering & starting their ventures.
NOTE: Some other essential forms like Part-B, SPICE+ forms are also required while incorporating your company.
4. Certificate of Incorporation:
After submitting all the documents mentioned above on the MCA portal, once your company gets registered, you will receive a Certificate of Incorporation (COI) which acts as a proof from the department that you Private Limited Company is registered. CIN number is also mentioned in the COI.
5. PAN, TAN and Bank account:
Once your Private Limited Company is registered on the MCA portal, you will receive the e-copy of your company’s PAN, TAN & ESIC.
These documents are required for opening a CURRENT Account under your Company’s Name in any Bank. After this, you can officially start your business operations. CONGRATULATIONS!!
You are now your own BO
Mandatory Compliances for a private limited company
As per the rules & guidelines provided by the Government of India, some compliances
are required to ensure smooth running of your business. Incase a company fails to maintain compliances, it can lead to a penalty or even the disqualification of the directors of the company.
Don’t be scared. This is where Vakilgiri- Your Legal Consultant comes into play. We help
you with the accounting and maintaining the statutory compliances of your dream company at a very low price as we understand the importance of your hard earned money.
Other than the below mentioned mandatory compliances, there are others that need to be done depending on the company’s timeline. Vakilgiri also assist you in increasing the authorised capital, changing registered office address, change in directors and other such trivial matters.
1- GST Registration
A Private Limited Company is required to get their GST Registration Number within 30
days of their Business Incorporation in India. It is required when the turnover of the company is more than INR 40 lakhs.
NOTE: In case of a Special Category State, or if the business deals with supplying of goods (intra-state) or the goods and services are of online nature, GST Registration
is required for a turnover of Rs. 20 lakhs.
2- GST Return
After getting registered under GST, a Private Limited Company is required to file GST returns. GST returns can be filed as per the forms you are filing on monthly, quarterly
or yearly basis.
A proper books of accounts representing the accurate & fair view of the nature and
state of affairs of your Private Limited Company must be maintained. Accounting is mandatory for the statutory audit, Annual filing and the Income Tax return filing. Such account books are audited by an auditor appointed by the company.
4- Statutory Audit
Within the 30 days of incorporation of a Private Limited Company, it is mandatory to appoint an Auditor to conduct an audit of its financial statements for each of the financial years. Irrespective of its sales turnover or the nature of capital or business, a company registered under the Companies Act, 2013 are required to maintain its accounts book and have it audited each financial year.
5- MAT Audit
Even after earning substantial book profits and paying handsome dividends, many a
companies do not pay any taxes due to various tax benefits/concessions provided under the Income Tax laws. Thus, to identify such companies as “zero tax companies”, MAT i.e. Minimum Alternate Tax was introduced. It is mandatory for the Pvt Ltd Co. to get their accounts audited under Minimum Alternate Tax.
6- Income Tax Audit
A Private Limited Company is required to get their tax audits done under section 44AB.
7- ROC Annual filing
Every year, three forms are mandatorily required to fill by a Private Limited Company.
Submission of documents of Financial Statement such as Balance Sheet, Personal & Loan Account (Form AOC 4), and annual return (Form MGT-7). The report on the auditor’s appointment to ROC is submitted in Form ADT-1.
8- TradeMark Registration
Trademark Registration (TR) is important if you want your Private Limited Company to get full protection for Business Name, Logo, Brand Name etc.
Getting your company registered by the MCA doesn’t provide any protection to the name or brand name. Thus, to make your company, a brand, Trade Mark Registration is a must.
WHY VAKILGIRI FOR YOUR PRIVATE LIMITED COMPANY REGISTRATION Online?
1- Leading Legal Consultant in India
Vakilgiri being one of the leading legal consultants in India helped thousands of entrepreneurs in starting their dream company/ventures. We are a team of highly experienced CAs and IT personnel who help you in each phase of your company registration part.
2- Fast & Efficient Company Registration
Since, the process of incorporating a company is 100% online, we offer quick services and completes the process in 7-10 working days.
3- All in one Support
From incorporating your company to filing compliances to website development, we offer all in one support so that you won’t have to tackle other clumsy service providers.
4- Lowest Price In India
We value your hard-earned money. Thus, offer services at the lowest price all across India. You can compare that yourself.
5- No Hidden Costs
We are an open book. What’s mentioned on our website or on the quotation sent to you, there are no hidden charges (unlike others that practises CLICK-BAIT marketing stunts). We believe in 100% transparency.
6- Website & IT Support
We have a separate Website Development & IT Support team which can take your company to participate and get recognized in this digital era. For a company to attract investors for raising funds or to attract potential customers, an attractive yet well-informed website is a must, and guess what, we make sure that you get what you want.
7- Excellent Customer Support System
We are available with you even on Weekends. For any query or issues, you can directly call us at 9528665852 or can visit: Vakilgiri.com
REGISTER YOUR OWN PRIVATE LIMITED COMPANY
Registration within a week
Authorised Cap. upto 15 lacs
MOA & AOA e-copy
2 DIN & 2 DSC
Certificate of Incorporation
200+ Document Formats
PAN/ TAN Certificate
Company Common Seal
All Gold Features included
Company Common Seal
Colored Printed MOA & AOA
Website Support for 1 year
1 year Domain & Hosting
Basic On-page SEO
Google Analytics & Email
1 year Book Keeping
1 year Annual Filing