Private Limited Company Registration Process
A private limited company is a business entity held by private stakeholders. 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 the 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 Registration
Due to its two key features, the limited liability of the owner and restricting shareholders from publicly trading shares, a private limited company is the most sought-after business entity.
Before going straight to the Private Limited Company Registration process, let’s first talk about the advantages you will get through registering your company as a Private Limited Company.
Advantages of a Pvt Ltd Company Registration
As there are multiple ways to register a company, each company registration type has advantages and disadvantages. Depending upon the business, partners, ownership flexibility and structure, you can choose the most suitable company registration type for your business.
There are numerous differences between LLP And Private Limited Company In India. In this article, we will first talk about the advantages of registering a company as a private limited company.
- Provides Limited liability: There is a limited liability in a private limited company. Members of the company cannot lose their private assets.
- Ownership Flexibility: Registering a company as a private limited company provides ownership flexibility to shareholders, allowing them to transfer and sell their shares to others.
- Minimum 2 shareholders are required: A minimum of two shareholders are required if you want to register your company as a private limited company.
- Continuous Existence: A business registered as a private limited company stays a legal entity until it gets shut down legally. A Private Limited Company can operate even after the death or departure of any member.
Disadvantages of a Private Limited Company Registration
A Pvt Ltd company has to keep up with several compliances post-incorporation. Here, a business has to hold general meetings and board meetings, get the accounts audited, maintain a statutory register and file an annual return with the MCA each year.
Company Shutdown Procedure Is Lengthy
For a Pvt Ltd company, compliance formalities for shutting down the business often end up getting too complicated and time-consuming.
Private Limited Company Registration Process In Gurgaon
- Step 1: Apply for Digital Signature Certificate (DSC)
- Step 2: Apply for the Director Identification Number (DIN)
- Step 3: Apply for the business name availability
- Step4: File the e-Memorandum of Association (eMoA) and EAOA
- Step5: Apply for the PAN and TAN of the company
- Step6: Get a Certificate of incorporation from the Registrars of Companies with PAN and TAN
- Step7: Get a bank account opened under the company name
Documents Required For Private Limited Company Registration In Gurgaon
Following are the documents that you are required to provide to register a company as a private limited company.
- ID proof of the Directors
- Address proof
- Residence proof
- Notarized rental agreement
- NOC from the property owner
- A copy of the sale deed or property deed (for an owned property)
Note: The information given in the article is all you need to know to register a Pvt Ltd Company. But as the company registration process is intricate, it is advisable to consult a professional for any legal business exercise.
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