Private Limited Company Startup
Private Limited Company Registration
Private Limited Company is the most prevalent and popular type of corporate legal entity in India. The Ministry of Corporate Affairs governs private limited company registration in India. Companies are incorporated and regulated under the Companies Act, 2013 and the Companies Incorporation Rules, 2014. Manager can help you with company registration across India at a very affordable price point.
Eligibility and requirements
To register a private limited company, a minimum of two persons to act as Directors and shareholders are required. The shareholders of a private limited company can be a corporate entity or a natural person. Director can only be a living person with one Director being a resident and Indian Citizen. A person is designated as a resident if he/she spends over 186 days in India.
There are no restrictions on foreign companies or foreign nationals being Directors or shareholders of a private limited company. As, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and Shareholders of a Company with Foreign Direct Investment, incorporating a company is the preferred choice of entry to India for foreign promoters.
Advantages of registering
Registering a private limited company has various advantages compared to a partnership firm or LLP as under:
Equity Raise: A company can raise equity capital from persons or entities interested in becoming a shareholder. Hence, a private limited company is a must for Entrepreneurs looking to raise money from angel investors, venture capital firms, private equity firms and hedge funds.
Limited Liability Protection: A private limited company provides limited liability protection to its shareholders. In case of any unforeseen liabilities are created, it would be limited to the company and would not impact the shareholders.
Separate Legal Entity: A private limited company is legally recognised as a separate entity. Hence, a company can have its PAN, bank accounts, licenses, approvals, contracts, assets and liabilities in its unique name.
Perpetual Existence: A company has perpetual existence and never ends without reason. For a company to lose its existence, it has to be wound-up by the Promoters or be wound-up by the Government. Hence, a company can only be wound up for reasons like non-compliance or failure to comply with rules and regulations.
Documents Required
The documents required for company registration can be grouped under three heads:
Documents for Directors: Two identity proof documents like Aadhaar, PAN, Passport, Drivers License or any other Government-issued identity document would be required. Indian nationals are mandatorily required to provide PAN. Foreign nationals are mandatorily required to submit attested or apostille passport copy.
In addition to the identity proof, the Directors must submit residence proof that is less than three months old. Proof of residence documents includes bank statements, electricity bill, water bill, gas bill and telephone bill.
Documents for Registered Office: Companies registered in India must mandatorily maintain a registered office within India. In the case of leased property, the copy of lease deed for the registered office premises along with a NOC from Landlord and EB bill/property tax receipt/water bill copy of the registered office property. In case of own property, copy of sale deed along with the EB bill/property tax receipt/water bill copy of the registered office property.
Post-Incorporation Compliances
All companies registered in India are required to maintain compliance under various regulations. Failure to maintain compliance can lead to penalty or disqualification of Directors. Manager can help you with accounting and maintaining of statutory compliances for the company at a very affordable price point.
Some of the important compliances for companies registered in India include, but not limited to:
Appointment of Statutory Auditor: The Board of Directors must appoint a practising Chartered Accountant within 30 days of incorporation.
Commencement of Business: Within 180 days of incorporation, the capital mentioned in the MOA [Memorandum of Association] must be deposited in a bank and commencement certificate must be obtained from MCA.
Income Tax Filing: Companies registered in India must file income tax return each year in Form ITR-6.
Annual Return: Companies registered in India must file MCA annual return each year in Form AOC-4 and MGT-7.
DIN KYC: DIN KYC procedure must be completed each year for the Directors of the company.
Documents required
Documents are of utmost importance in the process.In addition to the identity proof, the directors must submit residence proof that is less than three months old.
Companies registered in India must mandatorily maintain a registered office. In case of leased property, the copy of lease deed for the registered office premises along with a NOC from the landlord and EB bill/property tax receipt/water bill copy of the registered office property. In case of property owned by self, copy of the sale deed along with the EB bill/property tax receipt/water bill is required.
In case one of the shareholders or subscribers to the MOA and AOA is a corporate entity (Company, LLP, etc.,) then the certificate of incorporation must be attached along with the resolution passed by the entity to subscribe to the shares of the company under incorporation.
Document submission
Identify the 2 directors and submit their documents as given to the below.
- Identity Proof- PAN (Indian Nationals ) or Passport (Foreign nationals)
- Proof of Address- Passport / Drivers License / Election ID / Ration Card / Aadhar ID
- Proof of residence- Bank Statement / Electricity Bill / Phone Bill
Name Approval
The proposed name is applied and obtained from the Ministry of Corporate Affairs. Upto 2 names can be provided. In case of rejection of both names, an opportunity is provided for re-submission of the form with 2 more names.
Digital Signature
Digital signatures must be obtained for the proposed directors of the company. Digital signature is required for signing of the incorporation application. However, digital signature is not required for obtaining the name approval.
SPICe+ form application
Company Incorporation
Company is incorporated along with the incorporation certificate, PAN and TAN within 2-3 business days.
Eligibility
To incorporate a private limited company a minimum of two persons are required over the age of 18 years with atleast one person being an Indian citizen and resident.
Pricing Table
STANDARD
Rs.25000/Month
Private limited company registration with 3 DSC for Directors and 1 Witness,
2 DIN for Directors,
1 RUN Name Approval,
1 lakh authorized capital,
stamp duty*, MOA, AOA, incorporation certificate,
PAN, TAN, GST registration, ESI & PF Registration,
hard-copy share certificates,
commencement of business certificate,
1 Financial Year accounting,
1 Financial Year financial statement preparation,
1 Financial Year MCA annual return filing, 1 Financial Year income tax return filing ,
6 month GST return filing,
Udyog Aadhar registration, trademark filing,
online payment gateway and Inclusive of all government fee and taxes.