How to Register a Private Ltd Company in Gurgaon Delhi
The Indian startup ecosystem is booming, with more and more entrepreneurs coming up with their world-impacting ideas.
But, the majority of these entrepreneurs, being first-time founders, don’t know how to set up their business.
Having different business registration options available to them, like a sole proprietorship, limited liability company and private limited company, first-time founders get confused.
Even if they research and come up with a conclusion to register their company as a How to Register a Private Ltd Company, there is a higher chance that they would still leave multiple bases unchecked.
This article aims to provide our readers, especially those having the entrepreneurial bug, with in-depth knowledge regarding Register Your Private Ltd Company.
In this article, we will talk about, in-depth, different sides of a private limited company.
Here, you will learn in detail
- The procedure of registering your company as a private limited company
- Advantages and disadvantages of a private limited company
- Requirements To Start A Private Limited Company (Pvt Ltd Company)
- Documents required to register a private limited company
But before going straight in details, let us first talk about A Private Limited Company.
What is a private limited company?
In simple words, a private limited company is a business entity held by private stakeholders.
But the Ministry of Corporate Affairs (MCA), as per
Section 2 (68) of the Companies Act, 2013 defines a private company as:
“A Company having a minimum paid-up share capital as may be prescribed, and which by its articles,— (i) restricts the right to transfer its shares; (ii) except in case of One Person Company, limits the number of its members to two hundred; (iii) prohibits any invitation to the public to subscribe for any securities of the company.”
Private Limited Company and LLP Company Registration is a business entity held by a small group of people, registered for pre-defined objects and owned by a group of members called shareholders.
Advantages of a private limited company
As stated above, there are multiple ways to register a company. This implies that each company registration type has its advantages and disadvantages. Now, we will talk about the advantages of registering a company as a private limited company.
- Limited liability: In a private limited company, there is a limited liability, and members of the company cannot lose their private assets. And if a company fails, the shareholders are liable to sell their assets for payment.
- Ownership: Registering a company as a private limited company allows shareholders to transfer and selling their shares to others.
- Fewer shareholders required: A private limited company can be started with just two shareholders, unlike a public company, which requires seven shareholders.
- Continuous Existence: A private limited company stays a legal entity until it is legally shut down. And even after the death or departure of any member, a Pvt Ltd company can still operate.
Disadvantages of a private limited company
Keeping Up with the Compliances
Once a company gets registered as a private limited company, it requires a range of Compliance Services for Startups post-incorporation.
The private limited company are required to hold board meetings, general meetings, get the accounts audited, maintain a statutory register and file an annual return with the Ministry of Corporate Affairs each year.
Lengthy Company Shutdown Procedure
Compliance formalities for shutting down a private limited company often ends up getting too complicated and time-consuming.
Requirements To Start A Private Limited Company (Pvt Ltd Company)
If you want to register your company as a Private Limited Company, it should be following the below-written points.
Directors And Members: If a company wants to legally register itself as a private limited company, it must show a minimum number of two and a maximum number of 200 members. Mandated as a statutory requirement by the Companies Act 2013, the directors should meet the following conditions:
- Each of the directors should have a DIN, i.e. director identification number (given by the Ministry of Corporate Affairs).
- One of the company’s director must be a resident of India.
Company Name: A private limited company is required to cover three aspects while deciding a name for itself:
- Main name of the company
- Work to be carried out by the company
- Mention of ‘Private Limited Company’ at the end.
Registered office address: The registered office is the place where the company’s main affairs are being conducted.
So, the permanent address of the Company Registration office must be filed with the registrar of the company, after the company has been registered.
Important Documents: For online submission of documents, every company must obtain a DSC- Digital Signature Certificate.
It is a document that is used to verify the authenticity of the documents.
Documents like DIN (Director Identification Number), PAN (Permanent Account Number), TAN (Tax Deduction and Collection Account Number) are also required.
Documents required to register A Private Limited Company
Following are the documents that are required to register a company as a private limited company.
- ID proof (Directors)
- Address proof
- Residence proof
- Notarized rental agreement
- NOC from the property owner
- A copy of sale deed or property deed (for an owned property)
How to register a Pvt Ltd Company
- Step 1: Apply for DSC (Digital Signature Certificate)
- Step 2: Apply for the DIN (Director Identification Number)
- Step 3: Apply for the name availability
- Step4: File the eMoA (e-Memorandum of Association) and EAOA to register the private limited company
- Step5: Apply for the PAN and TAN of the company
- Step6: Get Certificate of incorporation by RoC (Registrars of Companies) with PAN and TAN
- Step7: Open a current bank account on the company name