PRIVATE LIMITED COMPANY
Private Limited Company is a company which is privately held for small businesses. The liability of the members of a Private Limited Company is limited to the amount of capital contribution. Shares of this type of company cannot be publicly traded.
Advantages of Private Limited Company
Process of Private Limited Company Incorporation
The overall incorporation application filing may take 4-6 business days.
1. RESERVATION OF NAME
2. PROCURE DIGITAL SIGNATURE CERTIFICATE
3. APPLICATION FOR ONLINE REGISTRATION
3. INCORPORATION
5. COMMENCEMENT OF BUSINESS
1. RESERVATION OF NAME
Before application for incorporation, name for the proposed company is required to be reserved, where two names can be applied at a time, valid for 20 days once approved.
General practices to choose and apply the name are:
Name should be distinct and unique.
Name should be short and simple.
Name should not contain any restricted words.
Name should not infringe any Trademark Registered and should not be identical to any company or LLP registered.
2. PROCURE DIGITAL SIGNATURE CERTIFICATE
SC are required to file various eForms on MCA portal, digitally sign documents for the incorporation of the company and other applications.
3. APPLICATION FOR ONLINE REGISTRATION
Application for online registration of the company is required to be made online using SPICe INC-32 form along with e-MOA & e-AOA. DIN PAN, TAN etc. are to be filed along with SPICE INC-32.
3. INCORPORATION
On review and verification and after satisfaction, Registrar may issue the Certificate of Incorporation showing the Corporate Identification Number (CIN) and date of incorporation of the company along with the PAN and TAN of the company.
5. COMMENCEMENT OF BUSINESS
After depositing the initial capital in the bank account of the company, it is required to file form INC-20A for Commencement of Business post which a company can commence its business.
General practices to choose and apply the name are:
Name should be distinct and unique.
Name should be short and simple.
Name should not contain any restricted words.
Name should not infringe any Trademark Registered and should not be identical to any company or LLP registered.
SC are required to file various eForms on MCA portal, digitally sign documents for the incorporation of the company and other applications.
Application for online registration of the company is required to be made online using SPICe INC-32 form along with e-MOA & e-AOA. DIN PAN, TAN etc. are to be filed along with SPICE INC-32.
On review and verification and after satisfaction, Registrar may issue the Certificate of Incorporation showing the Corporate Identification Number (CIN) and date of incorporation of the company along with the PAN and TAN of the company.
After depositing the initial capital in the bank account of the company, it is required to file form INC-20A for Commencement of Business post which a company can commence its business.
Documents required for Incorporation
Registered Office Proof
- Utility bill (should not be older than two months)
- No objection certificate from the owner of premises for the Registered Office address of the company
- Rental Agreement with the owner of registered office and rent receipts (if premises is rented)
- Registry Proof or House Tax Receipt (in case of owned property)
ID Proof
Self-attested PAN Card of the first shareholder(s) and director(s)
Photo
Passport size photograph of the director(s)
Address Proof
Bank Statement/Utility bill in name of director (not older than two months)
Who and Why should you get Private Limited Company Reistered?
Any person who would like to avail the following advantages may opt for this form of structure
- limited number of members,
- less compliances than public company,
- limited liability of members,
- less capital contribution and
- tax advantages
may opt for this form of structure.
How StartUp Movers can help you?
HOW STARTUP MOVERS CAN HELP YOU?
- Name Approval Letter.
- Incorporation Certificate.
- MOA /AOA
- DIN Approval Letter and Digital Signature Token
- PAN Card of the Company and Company Stamp
- TAN/TDS Letter of the Company
- Incorporation kit to help you open a current bank account
- Filing of INC 20A for Commencement of Business
Quick Contact
Frequently asked questions
A Private Limited Company can be registered under any of following forms:
- Company limited by shares
- Company limited by guarantee
- Unlimited Company
The requirement of having a minimum paid-up share capital is done away in case of private limited company.
Digital Signature is a digital code created for the purpose of affixing them on digital documents and proving equal authority as of a handwritten signature. DSC is a prima facie evidence of the signature which validates the authenticity of the signature. Office of Controller of Certifying Authorities (CCA) issues Certificates only to Certifying Authorities which are the trusted entities who are responsible to issue DSC to end-user.
Stamp Duty is payable under Section 3 of the Indian Stamp Act, 1899. It is a nominal amount paid for legal recognition of the contents of a document. It is required to be paid at the time of registration of the company.
e-MOA (INC-33) and e-AOA (INC-34) can be obtained through certified copies facility available on MCA.
e-MOA and e-AOA are mandatory in case of the following:
- Individual subscribers are Indian nationals.
- Individual subscribers who are foreign nationals (having valid DIN and DSC) submit a proof of a valid business visa
- Non-individual subscribers based in India.
Physical copies of MOA and AOA is required to be signed and attached in case non-individual first subscribers are based outside India or individual foreign subscribers do not possess a valid business visa.
The Companies (Incorporation) Rules notified have liberalized many requirements in respect of Proof of Identity and Proof of Residence in respect of subscribers and directors. The Companies (Incorporation) Third Amendment Rules have relaxed the mandatory attachment of proof of identity and residence in respect of a subscriber having a valid DIN.
NRIs only allowed to incorporate limited companies in India and the private limited company is ideal for NRIs. Also, there is no requirement to obtain the prior approval from the government or RBI. But, in order to register a private company at least one director must be a resident of India.
DSC is mandatory for all subscribers and witnesses in e-MOA and e-AOA. e-MOA and e-AOA shall be used only where the maximum number of subscribers do not exceed seven. In case they exceed seven, MOA and AOA shall be attached manually to SPICe and DSC is not mandatory in such cases.
Subscriber’s photos are not required in SPICe forms.
Generally, two resubmissions are permitted for SPICe forms. However, it is at the discretion of ROC that they can allow more chances for resubmission.
You don’t need a proper office address to incorporate a company. You can register your residential address as a registered office address of your business with MCA (Ministry of Corporate Affairs) for which some address proof along with the NOC (No Objection Certificate) has to be filed with the prescribed form
Yes, there is no such legal constraint in the Companies Act if not restricted by the employment agreement. All you need to do is check your employment agreement because it may limit you from becoming a director in other company simultaneously.
Yes, FDI (Foreign Direct Investment) is allowed in a private limited company as this form of business entity is easy to raise funds. FDI (Foreign Direct Investment) is allowed in private limited companies for non-residents through automatic or approval route.
