Elementor #7295

Introduction

Private limited company is a voluntary association of two or more persons. It has limited liability, brand recognition and perpetual succession.

What is Company Registration in India?

It is the act of registering your business with the Government of India. For the startup of a new business, company registration is very important. By registering your business, it confirms to the government that your business is not illegal and exists legally. Those businesses which are not registered under the act will be considered illegal. Through company registration you will easily get loans and government schemes which can be very helpful for the future growth of the business. The owner also gets the license for running his/her business legally in the city or country in which it operates.

Benefits of Company Registration in India

• You are at low risk
• You can raise easy capital
• Legitimacy and brand awareness
• Builds goodwill and also supports more customer attraction
• Gives reliable investors bank credits and good investment with ease
• Provides cover of the responsibility to protect the company’s assets
• Bigger commitment to wealth and greater stability

Reasons Why You Should Register Your Company

• Raising money
• Goodwill
• Better credibility among customers
• Limited liability of the promoters
• Perpetual succession
• No capital constraint

Rules for Registering a Private Limited Company

• Minimum 2 directors and 1 shareholder are required.
• Shareholders cannot transfer their shares as per the AOA.
• Maximum number of shareholders is limited to 50.
• General public cannot buy shares of a private limited company.
• Deposits are only allowed from members and directors.

How to Register a Company/Startup in India

The following steps are required for the company registration process:

• DSC – Digital Signature Certificate: This is the first step for registering a company. You acquire DSC to ensure the security and authenticity of the documents which are filed electronically.
• Director Identification Number (DIN): This is the second step for registering a company. This concept was first introduced with the insertion of sections 266A to 266G of the Companies Act, 2006.
• Create a new account on the MCA portal.
• Apply for the company to be registered.

Documents for Private Limited Company Registration

Documents Required Before Submission of a Company

• Form-1 for incorporation of a company
• DIN of all directors of the proposed company
• Original copy of formal letter issued by ROC regarding availability of company name
• DSC – Digital Signature Certificate
• Form-32 for particulars of proposed directors, managers and secretary
• Form-18 for situation or address of the proposed company

Documents Required for DSC (Digital Signature Certificate)

For the registration of the company, directors and partners need to use DSC to submit necessary forms to the Indian government. Some instructions should be followed by the applicant before submitting the application for DSC:

• The applicant should sign across his/her photo in the application form.
• The applicant should get all supporting documents attested by a Bank Manager, Gazette Officer, or Postmaster.
• The applicant’s signature must be in Blue Ink.
• The applicant’s signature must be the same as it is in his/her Identity Proof.

Indian Nationals — Documents Required for DSC

• PAN Card of the applicant
• Bank Account Passbook
• Address Proof
• Passport size photo
• Post Office ID Card
• Aadhar Card
• Phone number and email ID

Foreign Nationals — Documents Required for DSC

• Attested copy of any other address proof issued by the Government
• Attested copy of Resident Permit certificate
• Attested copy of applicant’s Passport
• Attested copy of VISA
• Address Proof
• Identity Proof

For foreign nationals, it is mandatory to attest their address proof and identity proof by the following authorities:

• Apostilled by Native Country
• Embassy of Native Country
• Consularized by Native Country

Documents Required for DIN (Director Identification Number) — Indian Nationals

• PAN card
• Residential Proof:
  • Mobile bill
  • Bank statement
  • Telephone bill
  • Electricity bill
• Address Proof

Documents Required for DIN — Foreign Nationals

• PAN card
• Residential Proof:
  • A government-issued form that shows address
  • Residence card
  • Bank statement
  • Driving license
• Address Proof

Timeline for Private Ltd Company Registration

FAQ’s

Q1. What is a digital signature?

A digital signature is an encrypted signature which is saved on a pen drive. It makes the online registration process easy by signing ROC forms or PDFs.

Q2. Is it safe to register my company online?

Yes, it is safe to register the company online with a trusted company like Legaltax.

Q3. Are two directors necessary for a private limited company registration?

Yes, it is necessary to have a minimum of 2 directors for a private limited company. The maximum can be 200 members.

Q4. Do I need to be physically present during this process?

No, company registration is a fully online process. You would not need to be present at all during the process — all documents are filed electronically.

Q5. What documents are required to complete the process?

• Identity proof
• Address proof
• PAN card copy for Indian nationals
• Passport for foreign nationals
• NOC

Q6. How much does it cost to run a private limited company?

You can expect to spend approximately Rs. 40,000.

Q7. What are the Articles of Association and Memorandum of Association?

These documents contain the rules, mission and vision of your organisation, and define among other things the exact business and the roles and responsibilities of shareholders and directors.

Q8. Who can be a member in a private limited company registration?

Any individual who is 18 years or above and has a valid PAN card.

Q9. Can the director of a private limited company also be a salaried person?

Yes, a salaried person can be a director of a private limited company.

Q10. What is the time taken by LegalTax.in in forming a private limited company?

Legaltax takes 15-25 days for forming the company; this further depends on the documents provided by the applicants and the speed of approval from the government.

Q11. Are you keen to convert an already existing partnership firm to an LLP?

Those willing to convert into LLP have to apply through Form 17.

Q12. What documents are required for registering a private limited company?

• Form-1 for incorporation of a company
• DIN of all directors of the proposed company
• Original copy of formal letter issued by ROC regarding availability of company name
• DSC – Digital Signature Certificate
• Form-32 for particulars of proposed directors, managers and secretary
• Form-18 for situation or address of the proposed company

Q13. What are the benefits of a private limited company?

• You are at low risk
• You can raise easy capital
• Legitimacy and brand awareness
• Builds goodwill and also supports more customer attraction
• Gives reliable investors bank credits and good investment with ease
• Provides cover of the responsibility to protect the company’s assets
• Bigger commitment to wealth and greater stability

Q14. What are the reasons for registering a company?

• Raising money
• Perpetual existence
• Protection against accidents, limited liability, reduced financial loss and unfavourable situations

Q15. How to register a company/startup in India?

• Digital Signature Certificate (DSC): This is the first step for registering a company. You acquire DSC to ensure the security and authenticity of documents filed electronically.
• Director Identification Number (DIN): This is the second step. This concept was first introduced with the insertion of sections 266A to 266G of the Companies Act, 2006.
• Create a new account on the MCA portal.
• Apply for the company to be registered.

Q16. What is a company?

It is the act of registering your business with the Government of India. Company registration is very important for starting a new business. By registering, it confirms to the government that your business is not illegal and exists legally. Through company registration you will easily get loans and government schemes which can be very helpful for the future growth of the business.

Q17. What are the minimum requirements to register a private limited company?

• Minimum 2 directors and 1 shareholder are required.
• Shareholders cannot transfer their shares as per the AOA.
• Maximum number of shareholders is limited to 50.
• General public cannot buy shares of a private limited company.
• Deposits are only allowed from members and directors.

Q18. What are the statutory requirements to be fulfilled once a private company is registered?

• Appointment of a Statutory Auditor
• Depositing paid-up capital as mentioned at the time of registration
• Issue and allotment of shares
• Opening of the company’s current account within 30 days after receiving the PAN card

Q19. What is DIN?

DIN stands for Director Identification Number.

Q20. What is DSC?

DSC stands for Digital Signature Certificate, which is provided in the form of a token issued by Certified Authorities.