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Registering a PVT LTD Company

Created on 28 Aug 2018

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Updated on 19 Oct 2019

Private Limited Company, the most mainstream lawful structure for perpetuating a business. It is simple to form an entity in India. For this one should simply enrol the directors who are the face of the company with the Ministry of Corporate Affairs (MCA). The name of the organization must be enlisted and present the organization incorporation documents that includes the Memorandum of Association and Articles of Association. A private limited company must have at least two individuals and a maximum of 200 individuals. The whole procedure of registration takes around 10 to 15 days.

Understanding Private Limited Company

A private limited company is a limited liability organisation incorporated under the Companies Act, 2013. It must have at least two Directors and a maximum of 15. A natural individual can be a Director of the company along with the shareholder in the company. Notwithstanding that a foreign national, foreign corporate substances and NRI’s are also permitted to be the Directors as well as Shareholders of a Company with Foreign Direct Investment which makes it a favoured choice of element for foreign promoters.

Some of the salient features of a private limited company are, the capacity to raise the funds through shares, it is provided with the status of the separated legal entity, it has also perpetual succession. So, it is the most preferential form of business entity for small families or professionally owned business.

Advantages

  1. Limited liability,
  2. Separate legal Entity,
  3. Borrowing Capacity,
  4. Easy Debt Access,
  5. Hold Property, and
  6. Transfer Share.

The Process

  1. The first step is to obtain the digital signature certificated (DSC) which is required to sign the documents online. This can be obtained by submitting the self-attested copy of director PAN card and address proof;
  2. The second step involves the selection of Company name. It must be ensured that the name should be unique and not taken by others. Also, the name must be compiled with the MCA guidelines;
  3. After choosing the name, the name must be registered and get the Memorandum of Association and Articles of Association approved. The documents that required are:
      • Copy of Rental Agreement (along with NOC from the owner)/Sale Deed,
      • Latest Utility Bill,
      • An affidavit from director and shareholders, and
      • Copy of PAN card, Identity and Address Proof for DIN of at least 3 directors.
  4. After approval of MOA & AOA, the company incorporation certificate is issued by the registrar of companies, and
  5. After incorporation, one needs to obtain the PAN & TAN.

Documents required

  • Identity and Address Proof,
  • Registered Office Proof, and
  • Document Required for Registered office.
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A Keen Learner. Tiny, brainy, and studious, this quiet one stays in her zone until she pops. And once she does, boy, are her comebacks snappy! There is no financial question that she can't answer through her magical blog-writing. 

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