Private Limited Company Registration
A private limited company is a perfect beginning for any individual who needs their business to be a separate legal identity. Private Limited Company registration is the most famous legal structure option for businesses in India. A private Limited company is the most conspicuous type of business entity in India in contrast with others. It is essential to register your company as a private limited company that has various advantages from simple to incorporate to simple to dissolve. Taxxinn can assist you with company registration across India at a very moderate price.
Easy Fund Raising
The registration process of the company is strict enough to make this structure credible, among others, which makes it easier to raise funds or borrow from external sources. The organization itself provides a number of ways of raising funds in the form of private equity, ESOP, and more.
Separate Legal Existence
Once registration of the Corporation in India has been completed, a legal person is formed in the eyes of the law. It distinguishes itself from its founders and managers. The business will work on its own behalf simply by opening a bank account to own assets and entering into a contract with the parties. This also provides for the right to sue third parties in the event of any default.
Owner’s Limited Liability
The obligation or debt of the company does not create a charge on the personal assets of the owner. Their liability is limited only to the money invested and unpaid by them.
Management and Ownership Separation
Separate ownership and management allow both the organization and the management to concentrate on their potential work. The shareholders are responsible for managing and running the company without losing power in the form of a vote.
Checklist for Registering a Company in India
In order for any company to be registered in India, the below conditions have to be met.
A private limited company must have at least two directors and more, there can be 15. Of the directors in the business, at least one must be an occupant of India.
The name of your business must be Unique. The recommended name should not match any current organizations or trademarks in India
Minimum Capital Contribution:
There is no Minimum capital Contribution to a company. A company should have an authorized capital of in any event Rs. 1 lakh
The registered office of an organization doesn’t need to be a business space. Indeed, even a leased home can be the registered office.
Pvt. Ltd Registration Process.
Pvt. Ltd registration procedure is easy but a professional would be needed to complete the same. In addition, the procedure has been completely changed by the government in order to promote the ease of doing business. TaxxInn is experienced in Pvt. Ltd registration with an experience of registering more than 10000 Pvt. Ltd and consulting thousands of Pvt. Ltd partnerships throughout India.
Apply Digital Signature Certificate
The first step of the Pvt. Ltd Registration process is to apply for a Digital Signature Certificate to the directors of the proposed Pvt. Ltd. This is one of the important steps as the registration process of Pvt. Ltd Is done online and requires the forms to be digitally signed.
1 of 6 steps
Check for Pvt. Ltd Name availability
Before the process of registering Pvt. Ltd. We will ask you for a few names of your choices. We need to check the availability of the name to make sure it’s already not taken. Names can be checked on the MCA portal. This is done in order to avoid rejections.
2 of 6 steps
Name Approval and Reservation
Name Approval or Name Reservation is the method of reserving a unique name via RUN (Reserve Unique Name) submission form. A list of two proposed names of the Pvt. Ltd will be submitted to the authority for approval. The ROC reserves a name out of two names, and the Pvt. Ltd registers with the same name. The Registrar will approve the name only if it is not considered undesirable by the Central Government. Nor name should not relate in any way to any of the existing partnerships, Pvt. Ltd, trademarks or corporate entities.
3 of 6 steps
MOA & AOA Submission
Once the name has been approved, it is necessary to draft up a Memorandum of Association and Articles of Association. Both MOA and AOA are registered with the declaration of agreement of the MCA.
4 of 6 steps
Get Incorporation Certificate of Pvt. Ltd
When the Registrar approves your MOA and AOA, you’re closer to having your Pvt. Ltd licensed. The next step is to obtain an Pvt. Ltd Incorporation Certificate. You can do this by submitting all the documents to the Registrar. The time frame is between 2 and 6 days. Once you have your Pvt. Ltd Incorporation Certificate, you ‘re ready to go.
5 of 6 steps
Apply for PAN,TAN,GST and Current Account
Once the company gets incorporated one has to apply for PAN and TAN. On the other hand one can apply for GST according to the threshold limit. After this, you should submit an Incorporation Certificate, MOA, AOA and PAN to a bank to open your bank account.
6 of 6 steps
Search the company name before Company Registration
The first step of the Company Registration is to ensure that the company name has not been taken by another company. We can search the company name to check the availability of the specific name in India against the MCA and trademark database.
We Suggest the Company to think of three to four elective names during the approval phase of Private Limited Company Registration. The Ministry of Corporate Affairs will be the final authority to approve the name dependent on the availability rules and guidelines.
If your’s favored name is taken, do remember that the name of your Company doesn’t need to be your brand name. However, in case you’re going to trademark your brand name, likewise, check if it has already been trademarked at http://www.ipindia.gov.in/. In the event that it has been trademarked, If it has been trademarked, you would need a no-objection certificate from its owner to have it approved as your company’s name.
Shareholder enjoys limited liability to the extent of capital invested. Shareholder’s personal assets protected in the event of the company’s insolvency.
Separation Of Mangement & Shareholders
Management & shareholders can be separated. A shareholder can invest the fund in fruitful business without managing & Management can operate their business without frequent interruption of investors.
Separate Legal Entity
A company is a Separate legal entity from its Owners and Management in the eyes of law.
A business of the Company will not affect if there is any change in the ownership of the company.
asy Equity Funding
Startups businesses can easily raise funds from investors on an equity basis.
Every Pvt Ltd Company enjoys for recently announced start-up tax exemption, if meets eligibility criteria.
FAQs on Private Limited Company
It gives creditability to business in the eyes of financial institutions, providers and potential customers. As it causes simpler for companies to get loans at ideal terms from banks or convincing potential customers while going into bargains.
No, new company enrollment is a completely online procedure. As all documents are filed electronically, you shouldn’t be truly physically present. You would need to send us scanned copies of all the necessary documents & forms.
TIf you have all the documents in order, it will take no longer than 10 days. It is dependent on the ROC .
The applicants can furnish the minimum of 2 names with their preference order under RUN form. The candidate should follow the rules of the Act or guidelines. The registrar center may ask to re-present the application with an alternate name if names don’t fall under the criteria of uniqueness, importance or don’t satisfy different necessities.
Any individual over the age of 18 years can turn into the director in the company after acquiring Director Identification Number (DIN). Furthermore, since there are no particular criteria gave regarding citizenship or residency, Even an outside national can likewise turn into a director.
DSC is given as a token issued by Certified Authorities. Any form petitioned for online company incorporation in India will be submitted after affixing the DSC of an Applicant. The digital signature is an online signature used for signing e-forms.
A private limited company does not require any minimum capital to form.
Yes, a salaried individual can turn into the director in private limited, LLP or OPC private restricted organization. One needs to check the work understanding if that takes into account such arrangements. In a lot of cases, the businesses are very OK with the way that their representative is a chief in another organization.
Yes, A company is a legal entity and like an alternate individual established under the Act. It is treated as an alternate individual who can claim property and have obligations or leasers. The individuals (Directors/Shareholders/) of a company have no obligation to banks of a company for a situation company can’t pay the obligations.
Yes, NRIs or foreigners can hold shares and be a director of PVT LTDHowever, foreign participation above 50% will place the company under the category of Foreign Company
Authorized capital shows the maximum amount of capital that a company can raise by way of issue of shares at present or in the future. Whereas, the Paid-up Capital refers to the actual amount raised by a company i.e.; the amount paid by the shareholders on the issuance of shares. One can register a company in India by any amount of paid-up capital which can be less or equal to the authorized capital but not exceeding the authorized capita.