Private Limited Company Registration

All you Need to Know about Private Limited Company Registration – Fees, Documents Required, Procedure, Benefits

Establishing a Private Limited Company is one of the most recommended ways to begin a business in India. A Private Limited Company provides liability and legal protection to its stakeholders. In Simple Terms, we can say that if you have a Company Registration in India, the ministry of corporate affairs permits you to do business anywhere across the country or outside.

Learn all about the Online Private Limited Company Registration Process such as Documents Required, Fees, Step by Step Guide on How to Register a Private Limited Company, Benefits of Registering for Pvt Ltd Company, etc.

What is a Private Limited Company?

A Private Limited Company is a company in between the partnership firm and publicly owned company. It provides liability and legal protection to its stakeholders. However, the liability it offers to its members depends on the shared held by them. One can begin their Pvt. Ltd. Company after they get the Certificate of Incorporation.

Documents Required for Private Limited Company Registration

In order to establish a Private Limited Company, one needs to have Pvt Ltd Company Registration Documents handy and they are as follows

Quick Checklist:

  • Photographs of all Directors
  • All Directors PAN Cards
  • Driving License/Photo ID/Passport for Identification Proofs
  • Company’s Utility Bill or Electricity Bill as Residence Proof for Registered Office.

Specific Requirements:

  • To start a Pvt. Ltd. Company you must have a registered office in India.
  • Documents such as Electricity Bill, Bank Statements need to be recent.
  • Utility Bill, Rent Agreement, and a Non-Objection Certificate from the Landlord stating his/her consent to use the space as a registered office for a company needs to be submitted.

Cost for a Private Limited Company Registration

There are several costs involved in the Private Limited Company Registration. It depends on the plan you have chosen such as basic, standard, premium. The benefits for each plan vary and You can choose as per your requirements.

How to Check Name Availability for Private Limited Company Registration?

While Registering for a Pvt. Ltd. Company you need to choose a unique name. Once a Company chooses a name then no other company can take it. It is just like Brand Recognition. That’s why you need to provide 3 to 4names during the registration process and then MCA checks for the same names and approves as per their rules and guidelines.

Different Forms of Online Private Limited Company Registration

If at all you feel the Pvt Ltd Company Registration is expensive then you can go with the below

  • Proprietorship Firm
  • Partnership Firm
  • OPC Registration
  •  LLP Registration

Benefits of Private Limited Company

There are numerous perks of starting a Private Limited Company and we have outlined some of them as follows. The below-listed benefits will make your decision-making easy.

  • Pvt. Ltd. Company has a separate legal entity which means the assets and liabilities of the company are not the same as the assets and liabilities of the director. Both of them will count differently.
  • We can raise funds and investments easily in these companies. Foreign Direct Investments are also allowed.
  • Limited Liability exists i.e. in case of any disturbances in the company under any circumstances personal assets are not used to pay the debts of the company as the members will have limited liability.
  • More credibility exists as the particulars are stored in a public database making it easy to authenticate the details.

Procedure for Private Limited Company Registration | How to Incorporate a Private Limited Company?

Private Limited Company Registration Process is explained clearly. You can use this quick guide to get the Registration Done and to resolve your queries if any.

Step 1: Apply for DSC(Digital Signature Certificate)

In the initial stage, you need to apply for a Digital Signature Certificate. As all the eforms are online you will need a Digital Signature instead of a Manual Signature. In the MOA & AOA of the Company, directors need a digital signature.

Step 2: Apply for DIN(Director Identification Number)

In order to become a director of the company, one needs to have a DIN number mandatorily. After getting the Digital Signature Certificate you are supposed to apply for the DIN.

 Step 3: Reserve your Company Name

It is one of the crucial steps to follow as a part of the entire procedure. You need to have a unique identity name for your company. There are 2 different ways to register or reserve your name and they are

  • One is to submit your name with MCA through newly RUN( Reserve Unique Form). In case of any trademark or existing name violations, your application will be rejected and you need to apply again.
  • Another way is t submit the proposed name using SPICe INC 32 Form. It is approved whole company name is approved or else you will have 1 more chance for resubmission. After that, you need to apply again and do the entire process from scratch and pay the fees again.

Step 4: Filing of EMOA and EAOA

Earlier you need to file MOA and AOA, but with the rules and regulations changed you just have to attach the Electronic MOA & AOA of the Company.

Step 5: Apply for the TAN and PAN of the Company

You can apply for the TAN and PAN of the Company along with the SPICe Forms itself.

Step 6: Issued Certificate of Incorporation by RoC with PAN & TAN

If everything goes well then MCA will issue the certificate of incorporation along with PAN & TAN for the Same.

Step 7: Open a Current Bank Account on Company Name

Once you get the certificate of Incorporation you need to open a current account in the name of the company by providing the required documents.

FAQs on Private Limited Company Registration

1. How much does it cost to register a Pvt Ltd Company?

The cost of incorporating a Pvt Ltd Company would depend on the number of members, directors, authorized share capital, professional fees, etc.

2. What are the documents required for Pvt Ltd Company?

Documents required for Pvt Ltd Company are as follows

  • Photographs of all Directors
  • All Directors PAN Cards
  • Driving License/Photo ID/Passport for ID Proofs
  • Company’s Utility Bill or Electricity Bill as Residence Proof for Registered Office.

3. What are the benefits of Pvt Ltd Company?

  • Separate Legal Entity.
  • Limited Liability.
  • Fund Raising.
  • FDI Allowed.
  • Builds Credibility.

4. Who is the owner of Pvt Ltd Company?

In a Private Limited Company Owners are the Shareholders.

5. Who gets the profit in a private limited company?

Company Profits are distributed normally paid to the shareholders in the form of dividends.