Private Limited Company
Rs. 6847/-(All Inclusive)
Private Limited Company registration – including Government Fee and Stamp Duty on Auth. Capital of Rs. 1 lac
Private Limited Company Registration
Private Limited Company is a successful business type. Minimum two persons can promote a Private Limited Company. There can be minimum two and maximum two hundred members of a Private Limited Company. Perpetual succession, separate judicial entity, greater stability etc, are some of the main features of a Private Limited Company. Larger businesses prefer dealing with a Private Limited Company than with a Proprietorship or a Partnership Firm. Easy availability of finance and possibility of fund raising by equity dilution makes Private Limited Company structure attractive amongst Small and Medium Sized Businesses and Startups.
How much does it cost to start a Private Limited Company in India?
Checklist for Private Limited Company Registration
Here is the checklist for Incorporation of Private Limited Company in India
- Minimum two Shareholders and Directors required. Shareholders and Directors can be same persons.
- 2 Class III Digital Signatures
- DIN for all the Director – if you already have the DIN, make sure that the DIN is not disqualified and the eKYC is done.
- Name of Private Limited should be such that it does not resemble with the existing Company Name or a Registered Trademark
- Company must file intimation for commencement of business in form INC 20 A within 180 days from the date of incorporation and cannot start business activities before filing it
Documents required to register Private Limited Company in India
The document requirement for Company Registration can be divided into two sets, Documents for Registered Office Address proof and Documents for Partners.
Document for the Directors / Shareholders:
- PAN Card and Adhaar Card (Mandatory)
- Passport Size photo
- One of , mobile bill, landline phone bill, latest bank statement / passbook, electricity bill of partner as Address Proof
- One of, Passport, Driving License or Vote’s I’d Card as Identity Proof (PAN Card is not accepted as Identity Proof)
Documents for Registered Office address proof:
- NOC from the owner of the proposed Registered Office premises is must
- Not more than two months old Gas, Electricity or Telephone bill depicting the address of the premises in the name of owner.
- If the proposed registered office is owned by a third person (other than Directors / Shareholders), a rent agreement may also be required.
How to register Private Limited Company in India?
You can easily register your Private Limited with help of Ofin. The process is summed up in four easy steps as below:
- On receiving your request to start Private Limited, we get in touch with you and collect necessary details and documents
- We file a request for name reservation with the MCA and simultaneously get your Class III Digital Signature Certificates
- On receiving confirmation of name reservation, we apply for incorporation of Private Limited within 3 to 5 working days. MCA takes between 2 to 5 working days to approve the incorporation application if there is no further document requirement.
- On receiving Certificate of Incorporation and after opening Bank Account form INC 20 A is filed intimating the ROC for commencement of business.
Advantages of Private Limited Company
Separate Legal Entity:
- A Private Limited Company when incorporated is considered as artificial judicial person. It is a separate judicial entity. A Company can purchase its assets and borrow funds as a separate judicial entity. The Shareholders of Company are liable for company’s debts only to the extent of shares held by them.
- Since Private Limited Company is considered as artificial judicial person, its existence is not dependent on resignation, death or any other kind of departure of any of its members. A Private Limited Company continues its existence unless it is legally winded up as per the provisions of Law.
- Companies can borrow funds by issuing secured or unsecured debentures or by borrowing funds from Banks or financial institutions. Private Limited Companies are preferred by Banks and financial institutions lending money over Proprietorship or Partnership Firm.
- Transfer of shares of Private Limited Company can be done easily by signing share transfer forms and handing over the Share Certificates.
Ownership of Property:
- Being an artificial judicial person company can buy property in its name. The Private Limited Company becomes the owner of the property and share holders cannot claim this property.
- This is probably the most important advantage of a Private Limited Company. Share holders of a Private Limited Company are liable only to the extent of the unpaid amounts of shares held by them. Personal assets of share holders cannot be liquidated if company defaults.
Capacity to sue and be sued:
- A Private Limited Company is an artificial judicial person. Just as an individual initiates legal proceedings against another person, a Private Limited Company can also initiate legal proceedings against another person or Company.
- A person can be a share holder, director, employee or creditor of a Company. There are different contracts with the same person in different capacities.
FAQs on Private Limited Company
Minimum two persons can promote a Private Limited Company. There can be maximum two hundred members of a Private Limited Company.
Any person of 18 years and above can become Director of a Private Limited Company. A natural person of any nationality can become a director in a Private Limited Company. The only condition is that there should be atleast one Indian resident as director of Private Limited Company.
A Private Limited Company should have minimum 2 directors. There can be maximum fifteen directors in the Company.
A Private Limited Company can be started with any desired amount of capital investment. However the Government fees on minimum authorized capital of Rs. 1 lakh must be paid.
There has to be an official address of the Private Limited Company where all communication is received, it is called Registered Office of the Company. Any commercial or industrial premises or residence of any person can be Registered Office of a Private Limited Company.
No. You need not visit MCA office or our office to incorporate a company. You have to just send scanned copies of required documents by email. Certain documents which are required in physical format may be sent through courier.
We need address proof, identity proof and PAN Card of all the directors of the proposed Company. PAN Card of directors who is not an Indian national is not required. NOC from the owner of the place which will be the registered office of the company is required with proof of ownership, identity and address from the owner. Business Adviser from Ofin will guide you on list of documents.
With the help of Ofin you can incorporate your company in 5 to 15 days time.
There is nothing like fast track incorporation. Processing time with the Government department is same for everyone. Yes, we can incorporate your company quickly by saving processing time at our back office. We request timely submission of documents from your end.
It is compulsory to sign certain forms and documents using a signature which is in electronic form. This is called Digital Signature Certificate. Digital Signatures are issued for a price by different companies which are authorized by Government.
Directors of all the incorporated Companies have to register themselves with MCA by providing some details. On receipt of those details MCA allots them a unique number. That number is called Directors Identification Numbers (DIN). There can be only one DIN per person.
Authorised Capital is the maximum amount for which a company issue shares. Companies have to pay fees to Government depending on Authorised Capital. Minimum Authorised Capital of any Private Limited Company can be Rs. 1 Lakh.
Paid up capital is the amount of shares which a company has already issued. The maximum paid-up capital of a company cannot exceed the Authorised Capital. Authorised Capital of a company can be increased by paying Government fees.
Yes, subject to Foreign Direct Investment (FDI) guidelines, a non-resident Indians or foreign nationals can hold shares of a Private Limited Company.
Yes, a Private Limited Company must issue shares to all its Shareholders by issuing Share Certificates. We provide share certificates to all the Private Limited Companies. However stamp duty on the Share Certificates is not included in our package and needs to be paid by the client.
All the Companies registered on or after 2nd November, 2018 needs to file a declaration for Commencement of Business with the MCA in form INC 20A. A Company cannot start its business before filing of form INC 20A.