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Private Limited Company

Setting a Private Limited Company is one of the highly recommended ways to start a business in India. This type of company offers limited liability for its shareholders with certain restrictions placed on the ownership. An LLP has partners, who own and manage the business. Whereas in private limited company registration, directors may be different from shareholders.
Reliable Innovative, your leading legal consultant, offers a quick Company Registration service in India at nominal pricing. Here you will find how you can register your company.

How to register Company online – A detailed registration process

Step 1:

Application for DSC (Digital Signature Certificate)

Step 2:

Apply for the DIN (Director Identification Number)

Step 3:

Application for the name availability.

Step 4:

Filing of the eMoa and eAoA to register a private limited company

Step 5:

Apply for the PAN and TAN of the company

Step 6:

Issued certificate of incorporation by RoC with PAN and TAN

Step 7:

Opening a current bank account on the company name

Checklist for registering a company in India:

Two Directors:

A private limited company must have at least two directors and at most, there can be 15 directors. Among all the directors in the business, at least one must be a resident of India.

Unique Name:

The name of your business must be unique. The suggested name should not match with any existing companies or trademarks in India.

Minimum Capital Contribution:

There is no minimum capital amount for a company. A company should have an authorized capital of at least Rs. 1 lakh.

Registered Office:

The registered office of a company does not have to be a commercial space. Even a rented home can be the registered office, so long as an NOC is obtained from the landlord.

How should be the agreement between partners formed?

Partnership deed is an agreement between the partners in which rights, duties, profits shares and other obligations of each partner is mentioned.

Partnership deed can be written or oral, although it is always advisable to write a partnership deed to avoid any conflicts in the future.

Required Documents for Pvt. Ltd. Co.:

  • Directors’ Board Meeting minutes
  • Profit & Loss Balance Sheet of Pvt. Ltd./OPC
  • Conclusions from the Annual General Meeting (AGM)
  • Audit report
  • DSC of the Directors
  • Incorporation documents (PAN Card, Certificate of Incorporation)

Documents required for online company registration:

  • Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
  • Scanned copy of Voter’s ID/Passport/Driver’s License/Aadhar Card
  • Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
  • Scanned passport-sized photograph specimen signature blank document with signature [directors only])
  • Scanned copy of proof of principle place of business.

OPC Requirements:

  • Only a natural person who is Indian Citizen and resident in India can incorporate OPC.
  • Resident in India means a person who had resided in India for a period not lesser than 182 days in the prior calendar year.
  • Legal entities like Company or LLP cannot incorporate a OPC.
  • The minimum authorised capital is Rs 1,00,000.
  • A nominee must be appointed by the promoter during incorporation.
  • Businesses involved in financial activities cannot be incorporated as a OPC.
  • OPC must be converted to a private limited company when paid-up share capital exceeds Rs.50 lakhs or turnover crosses Rs.2 crores.

Reasons to register a company in India:

As per Law, a company is an artificial judicial person established under the Companies Act. A company is a separate legal entity from its Directors and Shareholders. Hence, a company enjoys a wider legal capacity, to own property and incur debts - while the individual company members owe no liability towards the company’s creditors for debts.
The ownership of a private limited company is determined by the number of shares held by its shareholders. Shares of a company can be transferred to any other person or legal entity in India or abroad, subject to the articles of association of a company and the shareholder's agreement. The easy transferability of shares is one of the top reasons, Entrepreneurs opt to register a company.
Perpetual succession means continuing or enduring forever., A company is considered to be legally active until it is wound up by its members through a legal process. Hence, perpetual succession denotes the continuous existence of a corporation or company till it is dissolved legally. Thus, a company is unaffected by the death or departure of any member.
Limited liability is a legal responsibility for a limited amount of debts. The liability of the members with reference to the company’s debts is limited i.e.; limited to the face value of the share purchased by them. This limited liability protection is often not afforded to Directors of a company - who are held responsible for the operation of a company.
A company is the only type of legal entity that can help the promoters raise equity funding from Angel Investors, Private Equity Firms, and the Stock Exchange. A private limited company would suffice for raising equity funds from Angel Investors and Private Equity Investors. In case of listing or allotment of shares to more than 200 shareholders, a Limited Company would be required.
A company can acquire, own, transfer any type of tangible or intangible asset in India. A shareholder is not eligible to claim the company’s property, as they are not owners of the company. A shareholder merely has an interest in the company arising under the articles of association of the company, measuring a sum for liability.