Private Limited Company registration is the most popular legal structure option for businesses in India. Private limited company can have a minimum of two members and a maximum of fifty members. The directors of a private limited company have limited liability to creditors. In a case of default, banks / creditors can only sell company’s assets but not personal assets of directors.
Start-ups and growing companies prefer private limited company as it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to pull in top talent.
Choose Private Limited Company Registration because
- It is flexible and has limited liability.
- Greater capital contribution and greater stability
- Possibility to grow big and expand
ADVANTAGES OF PRIVATE LIMITED COMPANY?
There are multiple reasons to choose private limited company:
- Preferred by banks, VCs & investors
- Easy to allocate and redistribute shares to investors or other directors
- Separate legal entity which limits your liability
- Offers the flexibility of a partnership firm and the advantages of a Public Ltd Company
- Easy to register, manage & run
- Easy to dissolve or wind-up.
5 STEPS FOR COMPANY REGISTRATION
Application of DSC & DPIN
First of all, the partners have to apply for Digital signature and DPIN. Digital signature is an online signature used for filing and DPIN refer to Directors PIN number issued by MCA. If the directors already have DSC and DPIN, then this step can be skipped.
You need to provide 3 different options for your company name to MCA of which one will be selected. Names provided should ideally be unique and suggestive of company business
MOA & AOA Submission
Once name is approved, one needs to draft Memorandum of association and Articles of Associate. Both MOA and AOA are filed with the MCA with the subscription statement.
Get Incorporation Certificate
It typically takes 15- 25 days to form a Private limited company and get the incorporation certificate. Incorporation certification is a proof that company has been created. It also includes your CIN number.
Apply for PAN, TAN & Bank Account
Then you need to apply for PAN and TAN. PAN and TAN are received in 7 working days. Post this, you can submit the Incorporation certificate, MOA, AOA and PAN with a bank to open your bank account.
DOCUMENTS REQUIRED FOR COMPANY REGISTRATION
- Copy of PAN Card of directors
- Passport size photograph of directors
- Copy of Aadhaar Card/ Voter identity card of directors
- Copy of Rent agreement (If rented property)
- Electricity/ Water bill (Business Place)
- Copy of Property papers(If owned property)
- Landlord NOC (Format will be provided)