- Date 01 Jun 2016
- Lawyer Advocate Chandan Singh
- Skills Corporate Lawyer
- Location Jaipur
ABOUT THIS PROJECT
Overview of Online Private Limited Company Registration in India
A Private Limited Company is a privately maintained small business existence, which is one of the highly recommended means to start a business in India. The Companies Act 2013 governs private limited company registration in India.
While, minimum 2 shareholders are required to start a private company, the higher limit of members are 200 as per the Companies Act, 2013. If a private limited company faces financial risk, its shareholders are not subject to sell their personal assets, i.e. they ought to have limited liability.
For online company registration, there must be a least of 2 directors while maximum 15 directors can be appointed in a company. Proposed director must have attained age of 18 years. A foreign national can also become a director of private limited company in India.
There is no minimum paid-up capital required for a private limited company registration. Every private limited company must use “pvt.ltd.” after their name.
A private limited company has never-ending existence. A private limited company holds on existing even in the case of death or bankruptcy of its Members.
A private limited company does not have any relationship with the public; they aren’t permitted to ask for any collateral from the public or public sectors. In a private limited company, people are not entitled to transfer shares, which protect takeovers of private limited companies from big enterprises.
Benefits – Why one should go for Private Limited Company Registration in India?
Starting a private limited company offers many advantages. Some of them are as follows:
- A registered private limited company increases the credibility of your business.
- Help owners from personal liability and protects from other risks and losses.
- Draws more customers
- Ease in obtaining bank credits
- Offers limited liability to preserve your company’s assets
- Greater funds supplement and more attractive stability
- Enhance the potential to grow big and expand
Now, let’s discuss some of the benefits in detail;
- Limited LiabilityThe responsibility of the members of a private limited company is restricted to their share only as the private limited company is a separate legal entity.
- Separate Legal EntityA private limited company is a separate legal entity which posses all the rights to sue or to be sued. It acts an artificial person which can buy a property on its own name.
- Credit AvailabilityA private limited company can obtain funds from the debentures as well as the stockholders. Registered Private limited company is considered as a corporate entity that attracts various angel investors and venture capitalists that helps them to expand and raise their funds for the growth of their business.
- Perform InternationallyThe private limited companies supports Foreign Direct Investment in which other type of firms requires appropriate licensing and approval from the administration for foreign investments.
- Perpetual ExistenceA private limited company has a lifelong existence. Private limited companies are considered as separate legal entities and are separate from the existence of their owners. It means they cannot be dissolved or end because of the death, retirement or insanity of any of their member/ director/ shareholder.
- Enhanced Value In MarketA registered private limited company is considered more trustworthy as compared to the non-registered ones. Information regarding the registration of private limited company can easily be obtained from the website of Ministry of Corporate Affairs. Vendors, suppliers and investors trust them over the other business structures. As a result, it enhances the brand value of the company amongst the customers and other investors and suppliers.
- Ease In Transfer Of OwnershipIt is quite easy to transfer equity to new members and issue fresh shares in private company.
What are the basic requirements of Online Private Limited Company Registration in India?
There are few requirements to be known before initiating a Private Limited Company in India;
- The private limited company must have a unique name which should not be same as any other registered company and trademark.
- It is mandatory for a private limited company to have a minimum two directors.
- As well as it is necessary to keep in mind that the private limited company should have minimum two shareholders.
- All directors & members of private limited company should have digital signature certificate which will be used to register a private limited company.
- There is no minimum capital required for initiating a private limited company.
- The process of online company registration is quite simple; make sure that you have a unique name for your company which will surely help you with quick company registration.
- You must avoid any offensive name for your private limited company registration.
Company Registration Filing Form – Manual to New Web-based SPICe + Form
SPICe Plus serves many requirements like name reservation, incorporation, DIN allotment, issue of PAN, TAN, EPFO, ESIC, Profession Tax (Maharashtra) and Opening of Bank Account. Moreover, one can also acquire the GSTIN via SPICe + form.Part A:
Name Reservation (Applicable to New Companies only)Part B:
- Company Incorporation
- Application for DIN
- PAN Application
- TAN Application
- GSTIN Application
- EPFO Registration
- ESIC Registration
- Opening of Bank Account for the Company
- Profession Tax Registration (only for Maharashtra)
Documents required for Online Company Registration in India through submitting the SPICe+ form
- The Articles of Association
- Memorandum of Association
- Declaration by the subscribers and by the directors
- A confirmation for the address of the office
- Two months utility bills copy
- Certificate of incorporation of the Outer Country body corporate [If applicable]
- A resolution passed by the global Company [If applicable]
- A recommendation declared by the promotional Company [If applicable]
- The interest of the directors from other entities [If applicable]
- Nominee’s assent
- Identity proof and residential address of the subscribers and the nominees
- Identity proof and residential address of Applicants
- The Declaration/Resolution of the unregistered companies
- Any other document [If required]
- Proof of principal place of business
- Evidence of appointment of Authorized Signatory for GSTIN
- Either of the documents– Letter of Authorization/Copy of Resolution passed by BOD
- Managing Committee and Acceptance Letter
- Proof of identity of Authorized Signatory for the opening of a bank account
- Proof of address of Authorized Signatory for the opening of a bank account
- Specimen Signature of Authorized Signatory for EPFO
The declaration in form ‘INC-9’ of the subscribers and the directors must get auto-generated in PDF format and presented electronically. The aspirant has to provide the recommendation along with a certification recommended by a professional, such as Company Secretary, Chartered Accountant and Cost Accountant.
Documents That Can Be Used As Address Proof
Documents That Can Be Used As A Residential Proof
List of assistance which will be offered by the Online Company Incorporation Form i.e SPICe+ form:
- Reservation of Name (Run discontinued for Company Registration)
- Director Identification Number (DIN) Allotment
- Incorporation of Company
- PAN Issuance for the Company
- Issue of TAN
- Registration of Company as an Employer with EPFO
- ESIC Registration for the Company
- Profession Tax Registration for the State of Maharashtra
- Bank Account Opening.
- Company Registration as Tax Payer in GST
What is Private Limited Company Registration Process in India? – Company Registration Online
SPICe+ form is said to dedicate ten services via three central govt ministries and departments which are Ministry of Labour & Department of Revenue, Ministry of Finance and Ministry of Corporate Affairs. The new SPICe Plus form is said to save time and has been incorporated for all the new companies from February 23. The other forms that need to be filed along with SPICe+ are AGILE-PRO, SPICe+AoA and SPICe+MoA.
- Click ‘SPICe+’ placed under ‘MCA Services’.
- After that Choose ‘New Application;
- Existing application, you can prefer ‘Existing Application’, fill in the application number with the proposed or approved name. Click ‘Type of Company’
- Click ‘Class of Company’, and the ‘Category of Company’’
- Click ‘Sub-Category of Company’
- Next, you have to specify the ‘Main division of industrial activity of the Company’
- Next, you have to mention the ‘Main division of industrial activity of the Company’
- Next you have to provide details of the ‘proposed or approved name’. Click the ‘Auto-check’ to in accordance with the rules administering the name. Submit the ‘Part A’ for reservation of name or proceed with the incorporation.
- Part B has different sections for ‘check form’ for each section. The details required for registration are as follows:1. Location of the registered office of the company2. Proposed directors and subscribers3. Resources of the company4. Apply for tax registrations such as PAN and TAN
- Carry out a ‘pre-scrutiny’ check. A confirmation is presented upon successful submission of the form.
- Download the PDF of Part B proposed for affixing the DSC and for filling up any linked forms along with Part B. The forms linked to SPICe+ are AGILE-PRO, SPICe+MoA and SPICe+AoA, URC-1 and INC-9. Part B of SPICe+ and linked forms can then be uploaded on the MCA portal. A Service Request Number is generated for making a payment towards private limited company incorporation. Once the payment is made successfully, the forms would be processed.
- In a case where the forms need re-submission for any errors being flagged upon processing, the SPICe+ form has to be resubmitted in the same manner.