Skip the paperwork, streamline the startup. Effortless Private Limited Company Registration at your fingertips.
Are you looking for a simple and hassle-free way to register your company in India? Do you want to enjoy the benefits of limited liability, separate legal entities, and easy funding options? If yes, then you should consider forming a private limited company, the most popular and preferred type of business structure in India.
A private limited company is a company that has at least two shareholders and two directors, and can have a maximum of 200 shareholders. It is governed by the Companies Act, 2013 and the rules made thereunder. A private limited company has its own identity, distinct from its owners, and can own property, enter into contracts, and sue or be sued in its name.
A private limited company is a type of company that is privately held and has limited liability. It is one of the country’s most popular types of business structures due to its various advantages, such as:
Shareholders of a private limited company are only liable to the extent of their shareholding. This means that their personal assets are not at risk in case of financial losses incurred by the company.
A private company is a separate legal entity from its owners. It has its own legal identity and can own property, enter into contracts, and sue or be sued in its name.
A private limited company must have a minimum of two shareholders and a maximum of 200 shareholders.
The right to transfer shares in a private limited company is restricted. Shares can only be transferred with the approval of the Board of Directors or following the Articles of Association of the company.
A private limited company must have a minimum of two directors. It is mandatory for at least one director to be an Indian citizen.
A private limited company is prohibited from inviting the public to subscribe to its shares or debentures.
A private limited company must have a minimum paid-up capital of Rs.1 lakh or a higher amount as prescribed.
A private limited company offers many benefits to its owners and stakeholders, such as:
A private limited company can raise funds from various sources, such as angel investors, venture capitalists, banks, and financial institutions. It can also issue equity shares, preference shares, debentures, and convertible instruments to attract investors.
A private limited company is registered with the Registrar of Companies (ROC) and complies with the provisions of the Companies Act, 2013 and the rules made thereunder. Anyone can check the details of the company through the Ministry of Corporate Affairs (MCA) portal. This enhances the credibility and reputation of the company among its customers, suppliers, and partners.
A private limited company has perpetual succession, which means that it continues to exist even if the shareholders or directors change or die. The company can only be dissolved by following the legal procedures under the law.
A private limited company enjoys various tax benefits, such as lower corporate tax rate, deduction for research and development expenses, carry forward and set off of losses, and tax holiday for startups.
The documents required for registering a private limited company are:
The eligibility criteria for forming a private limited company are:
The main types of private limited companies generally fall into three categories based on liability:
This is the most common type. Shareholders' liability is limited to the amount unpaid on their shares. This means, if the company defaults or has losses, shareholders' personal assets are generally protected (beyond the unpaid share value).
In this type, members offer a guarantee to contribute a specific amount towards the company's assets if it's wound up. These companies often don't have share capital and are commonly used for non-profit purposes or social enterprises.
This is the least common type, where members have unlimited personal liability for the company's debts and obligations. This means personal assets can be at risk if the company faces financial difficulties. Due to the high risk involved, this type is rarely used in business scenarios.
A private limited company is better than a one person company (OPC) and a limited liability partnership (LLP) in many aspects, such as:
A private limited company has more growth potential than an OPC or an LLP, as it can raise funds from various sources, issue different types of securities, and expand its business operations. An OPC is limited by the number of members and the share capital, and an LLP is limited by the nature of the partnership agreement and the contribution of the partners.
A private limited company is taxed at a lower rate than an OPC or an LLP, as it pays corporate tax at 25% (if turnover is less than Rs.400 crore) or 30% (if turnover is more than Rs.400 crore), whereas an OPC and an LLP pay income tax at 30%. A private limited company also enjoys various tax deductions and exemptions, which are not available to an OPC or an LLP.
A private limited company has more compliance requirements than an OPC or an LLP, but this also ensures that the company follows the best practices and maintains transparency and accountability. A private limited company has to file annual returns, financial statements, and audit reports with the ROC, and also comply with the provisions of the Companies Act, 2013 and the rules made thereunder. An OPC and an LLP have less compliance requirements, but they also have less credibility and reputation in the market.
● Obtain a Digital Signature Certificate (DSC) for each director. This serves as your electronic fingerprint for secure document signing.
● Apply for a Director Identification Number (DIN), a unique identification for directors.
● Ensure your chosen company name aligns with naming guidelines and is available for registration.
● File the Electronic Memorandum of Association (eMoA), outlining your company's objectives and activities.
● File the Electronic Articles of Association (eAOA), establishing internal rules and governance structure.
● Apply for a Permanent Account Number (PAN) for tax identification and a Tax Deduction and Collection Account Number (TAN) for tax-related transactions.
● Receive the Certificate of Incorporation from the Registrar of Companies (RoC), officially marking your company's birth.
● Open a current bank account in your company's name to manage finances and transactions smoothly.
With these steps accomplished, you’re ready to operate as a Private Limited Company and navigate the exciting path ahead. It is advised to consult with an expert for a smooth process and stress free registration.
If you want to register your company as a private limited company, you should choose Business Babu, the best online platform for company registration in India. Business Babu offers you the following advantages:
Business Babu has a team of experienced professionals, such as company secretaries, chartered accountants, lawyers, and consultants, who will guide you through the entire process of company registration, from choosing a name to obtaining the certificate of incorporation.
Business Babu offers you the most affordable pricing for company registration, starting from Rs.6,999 only. You can also avail various discounts and offers on other services, such as GST registration, trademark registration, and accounting and bookkeeping.
Business Babu ensures that your company registration is done fast and hassle-free, without any delays or errors. You can complete the entire process online, without visiting any office or submitting any physical documents. You can also track the status of your application and get regular updates on your email and phone.
Business Babu values your satisfaction and feedback, and strives to provide you the best customer service and support. You can contact Business Babu anytime through phone, email, chat, or WhatsApp, and get your queries resolved in no time.
So, what are you waiting for? Register your company with Business Babu today and start your business journey with ease. Business Babu is your one-stop solution for all your business needs.
Got a question? We’ve got answers. If you have some other questions, contact us over here.
A private limited company is a type of business entity that has a separate legal identity, limited liability protection, and can have up to 200 shareholders. It is one of the most popular forms of business in India.
Some of the benefits of registering a private limited company are:
– It can raise funds from various sources, such as angel investors, venture capitalists, banks, etc.
– It can issue shares and stock options to its employees and directors.
– It can enjoy tax benefits and deductions under various schemes and laws.
– It can enhance its credibility and reputation among customers, suppliers, and partners.
To register a private limited company, you need to fulfil the following requirements:
– You need to have at least two directors and two shareholders. The directors and shareholders can be the same persons.
– You need to have a valid PAN card, Aadhaar card, and passport (for foreign nationals) for each director and shareholder.
– You need to have a registered office address in India, where you can receive official communications and notices.
– You need to have a unique name for your company, which should not be similar to any existing company or trademark.
You can register a private limited company in India through the online portal of the Ministry of Corporate Affairs (MCA)¹. You need to follow these steps:
– Apply for a digital signature certificate (DSC) for each director and shareholder.
– Apply for a director identification number (DIN) for each director.
– Apply for a company name approval through the Reserve Unique Name (RUN) service or the Simplified Proforma for Incorporating Company Electronically (SPICe) form.
– File the SPICe form along with the electronic memorandum of association (eMoA) and the electronic articles of association (eAoA) to incorporate your company.
– Obtain the certificate of incorporation, the permanent account number (PAN), and the tax deduction and collection account number (TAN) for your company.
The time and money required to register a private limited company may vary depending on various factors, such as the availability of documents, the approval of the name, the workload of the MCA, etc. However, on average, it may take around 10 to 15 days and cost around Rs. 10,000 to Rs. 15,000 to register a private limited company in India.
After registering a private limited company, you need to comply with various laws and regulations, such as:
– Appointing an auditor within 30 days of incorporation and conducting an annual audit of your accounts.
– Filing annual returns and financial statements with the MCA within 60 days and 30 days of the annual general meeting, respectively.
– Filing income tax returns and paying taxes as per the applicable rates and slabs.
– Complying with the goods and services tax (GST) regime and filing monthly, quarterly, and annual GST returns.
– Complying with the labour laws, such as the Employees’ Provident Fund (EPF), the Employees’ State Insurance (ESI), the Professional Tax (PT), etc.
– Complying with any other specific laws and regulations applicable to your industry or sector.
You can close or wind up a private limited company by following one of these methods:
– Voluntary winding up: This is when the shareholders and creditors of the company agree to wind up the company due to any reason, such as loss, insolvency, etc. You need to pass a special resolution, appoint a liquidator, settle the liabilities, and file the necessary forms with the MCA to complete the process.
– Compulsory winding up: This is when the company is ordered to be wound up by the National Company Law Tribunal (NCLT) due to any reason, such as fraud, mismanagement, default, etc. You need to file a petition with the NCLT, submit the relevant documents, and follow the directions of the NCLT to complete the process.
Yes, a foreign national or a non-resident Indian (NRI) can register a private limited company in India, subject to the following conditions:
– At least one director of the company must be a resident of India, i.e., he or she must have stayed in India for at least 182 days in the previous financial year.
– The foreign investment in the company must comply with the foreign exchange management act (FEMA) and the foreign direct investment (FDI) policy of the government of India.
– The foreign national or NRI must have a valid passport, visa, and address proof for registering the company.
No, you cannot register a private limited company with a single person. You need to have at least two directors and two shareholders to register a private limited company. However, you can register a one person company (OPC) with a single person, which is a type of company that has only one shareholder and one director.
Yes, you can register a private limited company with a residential address, as long as you have the consent of the owner and the proof of ownership or occupancy of the premises. You also need to submit a utility bill (such as electricity, water, gas, etc.) and a no-objection certificate (NOC) from the owner along with your address proof.
Yes, you can change the name, address, directors, or shareholders of a private limited company, subject to the approval of the MCA and the shareholders. You need to follow these steps:
– To change the name, you need to pass a board resolution, apply for a name approval, pass a special resolution, and file the necessary forms with the MCA.
– To change the address, you need to pass a board resolution, obtain the consent of the landlord, and file the necessary forms with the MCA.
– To change the directors, you need to obtain the consent and the documents of the new director, pass a board resolution, file the necessary forms with the MCA, and update the DIN details of the director.
– To change the shareholders, you need to execute a share transfer deed, pay the stamp duty, pass a board resolution, and update the share register of the company.
A private limited company and a limited liability partnership (LLP) are two different types of business entities that have some similarities and differences. Some of the main differences are:
– A private limited company requires a minimum of two directors and two shareholders, whereas an LLP requires a minimum of two partners.
– A private limited company has a separate legal identity, whereas an LLP has a hybrid identity of a partnership and a company.
– A private limited company can issue shares and stock options, whereas an LLP cannot issue shares or stock options.
– A private limited company has more compliance requirements, such as annual audit, annual returns, financial statements, etc., whereas an LLP has less compliance requirements, such as annual statement of accounts and solvency, annual return, etc.
The documents required for registering a private limited company are:
– PAN card, Aadhaar card, and passport (for foreign nationals) of each director and shareholder.
– Proof of registered office address, such as rent agreement, utility bill, NOC, etc.
– DSC and DIN of each director.
– SPICe form, eMoA, and eAoA of the company.
You can check the availability of a company name by using the MCA portal¹ or the IndiaFilings portal². You need to enter the proposed name of your company and see if it is available or not. You also need to ensure that the name is not similar to any existing company or trademark, and that it follows the naming guidelines of the MCA.
You can protect the name of your company by registering it as a trademark with the Controller General of Patents, Designs and Trademarks (CGPDTM). A trademark is a sign, symbol, word, or phrase that identifies and distinguishes your goods or services from others. By registering a trademark, you can prevent others from using your name or a similar name for their business. You can apply for a trademark online through the CGPDTM portal or through a trademark agent or attorney.