Private Limited Company

PRIVATE LIMITED COMPANY IN INDIA 2022

DEFINITION

A Private Limited Company In India offers very limited liability for its shareholders with certain restrictions placed on the ownership. It is favored by businessmen who are looking for expansion and sourcing funds from venture capitalists in the future. In an LLP there are partners who own and run the business, whereas in a private limited company the directors of the company can be different from the shareholders in the company.

BENEFITS OF PRIVATE LIMITED COMPANY REGISTARTION

• A private limited company protects the business owners from personal liability and also shield them from other risks or losses that may occur in the future
• A private limited company helps to attract and draw more customers
• A private limited company gets bank credit and investments from reliable investors with relative ease
• A private company offers liability protection to protect the company’s assets
• There can be greater capital contribution and greater stability in a private limited company setup
• A private company enhances the potential to grow big and expand rapidly as compared to an LLP

REQUIREMENTS NEEDED TO REGISTER A PRIVATE LIMITED COMPANY IN INDIA

As per the norms of the Company Act, 2013, to incorporate any private registered company in India, the below mentioned points have to be met.

• A private limited company must have at least two directors and a maximum of 15. At least one of the directors must be an Indian resident
• The name of the business must be unique and shouldn’t be similar to any existing company name or trademark
• While there is no minimum capital amount requirement for a private company, it should still have an authorized capital of at least INR 1 lakh
• The registered office of a company need not be a commercial premise. A rented place can also be the registered office, as long as a no objection certificate (NOC) is obtained from the landlord

DOCUMENTS NEEDED FOR ONLINE REGISTRATION OF THE COMPANY

A private limited company registration is not possible without proper identity proof and address proof. The identity and address proof of all the directors and the shareholders of the company is needed for this company to be incorporated. The documents that are required by MCA for the online company registration process are as follows:

• The name of your company must be unique. The suggested name must not match any existing company names or trademarks that have been registered in India
• A scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
• A scanned copy of Voter’s ID/Passport/Driver’s License
• The scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
• A scanned passport-sized photograph specimen signature of the directors
• For a foreign national, an apostilled or notarized copy of the passport has to be submitted mandatorily
• Residence proof documents like a bank statement or the electricity bill should be less than 2 months old
• For online company registration in India, the company must have a registered office in India. To prove admittance to the registered office, the most recent copy of an electricity bill or the property tax receipt or water bill must be filed. Along with the rental agreement, a utility bill/or the sale deed and a letter from the landlord with her/his consent to use the office as a registered office of the company should be filed
• A scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
• A scanned copy of the notarized rental agreement in English
• A scanned copy of no-objection certificate from the property owner
• A scanned copy of sale deed/property deed in English (in case of owned property)

PROCEDURE FOR ONLINE REGISTRATION OF A PRIVATE LIMITED COMPANY

• Application has to be made for DSC (Digital Signature Certificate)
• Application has to made for the DIN (Director Identification Number)
• Application has to be made for the name availability
• The filing of the EMOA and EAOA has to made to register a private limited company
• Application has to made for the PAN and TAN of the company
• A certificate of incorporation has to be issued by the ROC with PAN and TAN
• A current bank account has to be opened in the company name

Our team of legal and tax experts at ACE ALLIANCE will assist you in registering your directors with the Ministry of Corporate Affairs (MCA). Our team will also assist you to pick the right name for your company. Our team will help you in the drafting and filing of all the documents such as MOA and AOA that will be needed to register your company. Post this our team will assist you with any post registration formalities and compliances that may crop up.