Private Limited company registration starting from Rs.7,000/-
Private Limited Company Registration
Private limited company registration is a popular option to start a business in India by start-ups and businesses with higher growth aspirations. Pvt Ltd Company is incorporated under the Companies Act of 2013, and governed by the Ministry of Corporate Affairs (MCA). It is a registered corporate structure that provides business a separate legal identity from its owners. Hence, providing key advantages like the ability to contract in its own name, and safeguard personal assets of the owners from business liabilities.
About Private Limited Company registration:
Private limited company registration means a company that is incorporated as a private company as per section 2 (68) of Companies Act, 2013. A private company has the maximum number of members 200 except its former employees and present employees. More than two persons who own shares jointly are treated as a single member. A private company can’t invite to the public for the subscription of its shares.
A private company is required to add the word “Private Limited” or “Pvt. Ltd.” to the end of its name. A private company should have at least two members and two directors. The private company has the right to issue debentures to any number of persons.
A Private limited company registration is restricted to transfer of its shares but as per pre-emption clause if any member of Private Company wants to transfer its shares then such shares firstly offer to existing member of company, if existing members are not ready to take shares then such shares can be offered to outside person unless otherwise provided in articles. The price of such shares shall be determined by the director of the company and as per the pricing formula given in articles.
Private Limited Company and LLP both are limited liability structures. However, companies offer certain key advantages, especially for startups. Ownership of the company is defined by share capital, which is easy to transfer compared to ownership transfer in LLP. Also, it clearly differentiates management and ownership. Hence, it is preferred by VCs, angel investors and banks for providing debt or equity funding.
Pvt. Ltd. Company registration process is stringent enough to make this structure credible among others which makes fundraising or borrowing from external sources easier. The organization itself provides a number of ways to raise funds in the form of private equity, ESOP, and more.
Once the Company registration in India is done, a legal entity is born in eyes of law. This separates itself from its owners and managers. The company can operate on its own name simply by opening a bank account to own assets and enter into contract with parties. This also provides right to sue third parties in case of any defaults.
The company’s obligation or debts of does not create a charge over the owner’s personal assets. Their liability stays limited only to the capital subscribed and unpaid by them.
The separate ownership and management help both – the company and the management to focus on their potential works. The shareholders assign responsibility to operate and run the company without losing control in the form of voting.
Our Working Process :
MCA provides the web based facility integrated Web form SPICe+ or filed the e-form SPICe for the incorporation of a private limited company.
A. Apply for name through RUN Web Form:
- For incorporation of private limited company registration, firstly we should check the availability of name on the MCA portal after that we should apply for name through RUN web form on the MCA portal, if the name is unique and not similar than MCA personnel reserve the name for the company.
B. Make application in SPICe form for incorporation:
- For the incorporation of the company, we make an application in the SPICe form. In case incorporation of the company having more than 7 subscribers or any of the subscribers of MOA and AOA a signing a place outside India than scanned MOA and AOA shall be file along with Spice form i.e. INC32. Or in case a company has less than 7 subscribers we will file INC 33(e-MOA) and INC34 (e-AOA).
- There is no requirement to file form INC-22 in a case the registered office address is the same as the correspondence registered address of the company.
SPICe+ would offer 10 services by 3 Central Govt Ministries & Departments (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance) and One State Government(Maharashtra), thereby saving as many procedures, time and cost for Starting a Business in India and would be applicable for all new company incorporations w.e.f. 23rd February 2020.
SPICe+ has been divided into two parts viz., SPICe+ Part A and SPICe+ Part B.
SPICe+ Part A represents the section wherein all details with respect to name reservation for a new company has to be entered.
SPICe+ Part B represents the section wherein all remaining details required for incorporation of a company has to be entered.
Benefit of SPICe+ Form:
(i) Incorporation of Company.
(ii) DIN allotment.
(iii) Mandatory issue of PAN.
(iv) Mandatory issue of TAN.
(v) Mandatory issue of EPFO registration.
(vi) Mandatory issue of ESIC registration.
(vii) Mandatory issue of Profession Tax registration(Maharashtra).
(viii) Mandatory Opening of Bank Account for the Company
(ix) Allotment of GSTIN (if so applied for).
For more details about SPICe+ Form Click here.
How to Incorporate the Company :
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Documents required for Private Limited Company registration :
- PAN CardPAN Card of shareholders and Directors.
- Identity ProofAadhar card and Voter ID/ Passport/ Driving License of Shareholders and Directors.
- Director’s Address ProofLatest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholders and Directors.
- PhotographLatest Passport size photograph of Shareholders and Directors.
- Business Address ProofLatest Electricity Bill/ Telephone Bill of the registered office address
- NOC from ownerNo Objection Certificate to be obtained from the owner(s) of registered office
- Rent AgreementRent Agreement of the registered office should be provided if any.
Easy way to Incorporate the Private Limited Company
- INTRODUCTION OF PRIVATE LIMITED COMPANY.
- ADVANTAGES OF REGISTERING A PRIVATE LIMITED COMPANY.
- DISADVANTAGES OF REGISTERING A PRIVATE LIMITED COMPANY.
- PROCESS TO START A PRIVATE LIMITED COMPANY.
- DOCUMENTS REQUIRED TO REGISTER A PRIVATE LIMITED COMPANY.
Following registered persons not required to file GSTR 1, 2 and 3 such as:
Goods and Services Tax (GST) is an indirect tax applicable to the supply of goods and services. It is a comprehensive, multistage, destination-based tax. It has subsumed almost all the indirect taxes except a few state taxes. It is collected from point of consumption and not point of origin like previous taxes.
Documents attach in trademark application:-
A trademark can be registered by the Controller General of Patents Designs and Trademarks, Ministry of Commerce and Industry, Government of India under Trademark Act, 1999 to protect the identity of any goods and services.
Some basic information about Income tax
An income tax is a tax imposed on individuals or entities commonly known as taxpayers that varies with respective income or profits. Income tax generally is computed on taxable income which is calculated after various deductions. Taxation rates may vary by type or characteristics of the taxpayer.
Frequently asked questions on Private Limited Company
1.How many partners are required for start a private limited company?
Ans. There are minimum 2 partners and maximum 200 partners are required for start a private limited company
2.Is private limited company can issue his shares in public?
Ans. No a private limited company cannot issue its shares in public.
3.How much capital is required to start a private limited company?
Ans. There is no minimum capital required to start a private limited company.
4.What are the documents required to start a private limited company?
Ans. Documents required to start a private limited company are as follows-
- Utility bill of registered office not older than 2 months.
- Bank statement of all subscribers and directors for their residential proof, further it should not be older than 2 months (Optional attachment- electricity bill/telephone bill/mobile bill).
- Aadhar card, PAN card of all subscribers and directors in legible format.
- Rent agreement for registered office (if it is rented).
- No objection certificate from the owner of the registered office.
- Driving license of all subscribers and directors for identity proof.
All documents should be scanned in legible format and size of per document does not exceed 30 Kb.
5.Is private limited company has separate legal entity?
Ans.Yes, a private limited company has it’s separate legal entity
6.Difference between private limited company and partnership firm?
Ans. Partnership have unlimited liability whereas private limited company have limited liability. In partnership firm it is not necessary to register but in private limited company it is necessary to register. Private limited company required to obtain approval of its name but in case of partnership firm there is no requirement for name approval. In private limited company there are maximum 200 partners but in partnership firm maximum 20 partners are required.
7.Can private limited company converted into other company?
Ans. Yes, a private limited company canbe converted into other companies.
8.Who can invest in private limited company?
Ans. Only members can invest in private limited company no outsider can invest in private limited company.
9.What is the annual compliance for private limited company?
Ans. There is some mandatory compliance that private company must ensure-
- Minimum 4 Board Meeting to be held in every financial year.
- Appointment of Auditor in Form ADT-1.
- Hold Annual General Meeting every year within 6 months from the close of the financial year. And first AGM is to be held within 9 months from the close of first financial year.
- File financial statement in Form AOC-4 within 30 days of holding of Annual General Meeting.
- File Annual Return in Form MGT-7 within 60 days of holding of Annual General Meeting.
- Statutory audit report of annual accounts audited by Chartered Accountant at the end of the financial year.
ONE YEAR PACKAGE FOR PRIVATE LIMITED COMPANY
Incorporation of Private Limited Company Fees only Rs. 7,000/-
Note for Private Limited Company Registration
- No hidden charges! Above fees are based on present regulations of State Government and Central Government if Capital of the company is up to Rs.15 lakhs. If Capital of Company is more than 15 Lakhs than Govt Fees, Stamp charges and MOA and AOA fees as per statutory laws will be applicable in addition to above price.
- Audit fees Charges will be applicable as the case may be in accordance of statutory law.
- Above prices is illustrative in nature and it will be very depends on the nature of business and number of transactions of business.
Basic Features to Read before starting private limited company
Private company is required to add the word “Private limited” or “Pvt. Ltd.” to end of its name. Private company should have at least two member and two directors. Private company have right to issue debentures to any number of persons.
Features of Public Limited Company
MCA provides the facility for incorporation of public limited company. For incorporation, firstly apply for name through RUN (Reserve Unique Name) on MCA portal. After availability of name from ROC we should file incorporation form i.e. Spice 32, INC 33(for eMOA), INC 34(for eAOA), .