Private Limited Company Registration In India is a popular choice for entrepreneurs due to its distinct advantages, such as limited liability protection for its shareholders, ease of raising funds, and perpetual succession. Here's a step-by-step guide to understanding the registration process:
Understanding Private Limited Company
A Private Limited Company (Pvt Ltd) is a type of business entity that is privately held and offers limited liability to its shareholders. It requires a minimum of two shareholders and can have up to 200 members. The company is governed by the Companies Act, 2013.
Benefits of Registering a Private Limited Company
- Limited Liability: Shareholders' personal assets are protected in case of the company's financial liabilities.
- Separate Legal Entity: The company is considered a separate legal entity from its owners.
- Perpetual Succession: The company continues to exist even if the owners change or pass away.
- Ease of Fundraising: Easier to raise capital from investors and venture capitalists.
- Credibility: Enhances the business's credibility and trustworthiness.
Pre-requisites for Registration
- Directors: Minimum of two directors, one of whom must be a resident of India.
- Shareholders: Minimum of two and a maximum of 200 shareholders.
- Registered Office: A physical address in India where official communications can be sent.
- Capital Requirement: No minimum paid-up capital requirement.
Steps to Register a Private Limited Company
Digital Signature Certificate (DSC)
The first step is to obtain DSC for all proposed directors. This certificate is used to sign electronic documents.
Director Identification Number (DIN)
Apply for DIN for the proposed directors. This is a unique identification number for each director.
Name Approval
Propose up to two names for the company and apply for name approval through the Ministry of Corporate Affairs (MCA) portal. Ensure the names are unique and comply with MCA guidelines.
Incorporation Documents
Prepare and file the following documents with the Registrar of Companies (RoC):
- Memorandum of Association (MoA): Outlines the company's objectives and scope of operations.
- Articles of Association (AoA): Details the company's management and operational procedures.
- Form SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus): This integrated form covers company incorporation, DIN allotment, and PAN/TAN issuance.
- Form INC-9: Declaration by subscribers and first directors.
- AGILE-PRO-S (Application for GSTIN, EPFO, ESIC, Profession Tax Registration): Single application form for multiple registrations.