Private Limited Company
A Private Limited Company is a preferred option for startups, because it offers some key advantages. Ownership is defined by share capital, which is easy to transfer. It differentiates management and ownership, and so it is preferred by Venture Capitalists (VCs), investors and banks for providing funding.
At EOB, we provide quick and affordable services for a private limited company registration through a 100% online process.
Fee: Rs. 14000 (All Incl).
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Private limited Company Registration
A Pvt Ltd company is incorporated under the Companies Act of 2013 and governed by the Ministry of Corporate Affairs (MCA). It’s the most popular option for businesses with ambition and aspirations to grow. It is a registered corporate structure, that provides business a separate legal identity from its owners. Hence, providing key advantages like the ability to contract in its own name, and safeguard personal assets of the owners from business liabilities.
It comes with a higher level of compliance requirements and mandatory audits making it slightly more expensive than other company structures. But it is beneficial in the long run to build a professionally run company.
EOB Makes Private Limited Company Registration Easy
We complete a private limited company registration in 10 to 15 working days. We assign Chartered Accountants and Company Secretaries to ensure proper compliance and efficient delivery of services. The entire process is handled online so you can start your company from the comfort of your home. We provide services across India from major cities to smaller towns, with the same efficiency.
Want to choose the right structure for your business, click here to read more.
ADVANTAGES
Some of the benefits of a Pvt. Ltd. company
Allows you to separate ownership and management. This helps the company and the management to focus on the potential work. The shareholders assign responsibility to operate and run the company without losing control in the form of voting. This works for scaling up your business for long term goals.
This formation allows the owner’s personal assets to be protected in case the company has obligations of debts. Their liability stays limited only to the capital subscribed and paid by them.
A legal entity is formed, once the company is registered. The company can operate in its own name and begin transactions by opening a bank account to own assets and handle expenses or enter into contracts along with the rights to sue third parties for any disputes or defaults.
Owing to the stringent compliance requirements and registration process, this structure is by far the most credible form of doing business especially when you have to raise funds or borrow for business. There are multiple ways of raising funds like Bank Loans, Working Capital Loan, Private Equity, Venture Capital etc.
ONLINE REGISTRATION
Documents required to register a Private Limited Company
Formation of Company Name
Unique Name
Mainly it builds the company brand and should preferably be a coined word
Business Object
The second part of the name should suggest the business activity of the company
Constitution Type
Name of the company must end with “Private Limited” as a suffix
THE PROCEDURE
Company Registration Process in India
There are a series of steps before the company formation is completed. They are listed below for easy reference. The entire procedure takes 10 to 12 working days to complete (Based on standard government processing time).
- Collecting the required documents
- Reviewing the documents and information provided
- Application for Digital Signature Certificate
- Start with Name Availability
- Drafting of MoA, AoA and other required documents
- Name reservation application under SPICe
- Filing company registration application
- DIN allotment application
- Application for PAN and TAN of company
- Government processing time
FREQUENTLY ASKED QUESTIONS
Explore Private Limited Company Registration
What are the minimum requirements to register a Private Limited Company?
For Private Company registration in India, the following requirements must be fulfilled:
1. Minimum 2 directors shall be appointed, out of which one must be a resident of India.
2. Minimum 2 shareholders are required for this registration. Here, an individual may become shareholder and director at the same time.
3. A place of business in India must be provided as a registered office address.
What is the minimum Capital Requirement?
During the registration, a minimum of INR 1 Lakh should be provided as authorised capital. A minimum paid-up capital requirement is eliminated as a part of Government’s initiative to simplify the business registration in India. However, each shareholder must subscribe at least 1 share for the registration to introduce sufficient amount for running the business.
How to reserve the name of a company?
The name of a company should be formulated as mentioned above. The applicants can provide the maximum of 2 names with their preference order under RUN form. The applicant should comply with the provisions of the Act or regulations. The registrar may ask to re-submit the application with a different name if names do not fall under the criteria of uniqueness, relevancy or do not fulfill other requirements.
Who can become a director of a Private Limited Company?
Any natural person above the age of 18 years can become the director in the company after procuring Director Identification Number (DIN). Since there are no specific criteria provided in terms of citizenship or residency, a foreign national can also become a director. The application of DIN Allotment is now merged with the application for the formation of a company subject to a limit of maximum 3 DIN.
What is the Director Identification Number (DIN)?
Director Identification Number is a unique number assigned by the Ministry of Corporate Affairs to Individuals on whose name the application is made, allowing an individual to be a Director in any Company or Designated Partner in an LLP.
What is a Digital Signature Certificate? Who shall procure it?
Digital Signature Certificate is provided in the form of a token issued by certified authorities. Any form filed for online company registration in India shall be submitted after affixing the DSC of an Applicant. Also, the directors will require DSC for DIN application and the subscribers to MOA shall possess DSC for submitting e-forms for incorporation.
What is Authorised Capital and Paid-up Capital?
Authorised capital shows the maximum amount of capital that a company can raise by way of issue of shares at present or in the future. Whereas, the Paid-up Capital refers to the actual amount raised by a company, i.e. amount paid by the shareholders on the issuance of shares. One can register a company in India by any amount of paid-up capital which can be less or equal to the authorised capital but not exceeding the authorised capital.
Can a Private Limited company carry on multiple businesses?
Yes, a Private Limited company can carry on multiple businesses if it is mentioned in the company’s MoA and approved by a registrar. The company can mention more than one business operating within the same field or of the same nature. However, activities which are unrelated, such as fashion designing and event management or construction, cannot be registered under the same company.
Can I register the company at a residential address?
Yes, it is possible to register a Private Limited Company at a commercial or residential address by providing sufficient proof. A registered office is a place where the business receives communication, if any, from the MCA or any concerned authorities. This address is displayed on the portal of the ministry as well.
Can NRIs / Foreigners hold shares in a Private Limited Company?
Yes, NRIs or foreigners can hold shares subject to FDI guidelines. However, a foreign participation above 50% will place the company under the category of Foreign Company.
Does anyone has to be physically present for online company registration in India?
No, none of the promoters are required to be present when they opt to register a company online. All the forms are filed on the web portal and are digitally signed. Also, the required documents can be sent through e-mail or uploaded on our portal for filing.
What are the statutory requirements to be fulfilled once a Private Limited company is registered?
Once the company is registered, it should fulfil the below-mentioned requirements on priority:
- Open the company’s current bank account within 30 days of receiving the PAN card
- Appoint a Statutory Auditor
- Deposit paid-up capital as mentioned while registration
- Issue and allot shares of the company
What are the Annual Compliance requirements to be fulfilled by a Private Company?
During every financial year, the company must hold one Annual General Meeting (AGM) and at least 4 board meetings (one in each quarter). Further, the accounts and financial statements must be audited by an independent auditor. Subsequently, it shall file form AOC-4 and MGT-7 as part of Annual Compliance within the stipulated time.
What are the applicable tax rates for a domestic company ?
| Business Structure | Tax Rate | Effective Tax rate |
|---|---|---|
| Domestic Company | (Base Rate) | (Base rate + surcharge + CESS) |
| Not availing any exemptions or incentives | 22% | 25.17% |
| Manufacturing companies incorporated after 01st October, 2019 and not availing any incentives or exemptions | 15% | 17.16% |
| Availing any exemptions or incentives- turnover up to 400/- crore during FY 2017-18 | 25% | 25%+ surcharge +4% CESS (*Surcharge varies as per the income tax slab) |
| In any other case | 30% | 30%+ surcharge +4% CESS (*Surcharge varies as per the income tax slab) |
What is the role of accountants and auditors in a Private Limited company?
Daily transactions of the business are recorded in the Books of Accounts of the company by the accountant/s. The accounts thus recorded are verified by an independent auditor to make sure that no statutory compliances are missed and to provide an Audit Report for the same.
(Note: EOB shall only take the accountability of the Accounting Service provided by us but shall help in appointment of independent Auditor for your business.)
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