About Private limited company:-
Private Limited Company registration refers to the process of legally incorporating a company as a private limited entity under the Companies Act, 2013 in India. A private limited company is a type of business structure that limits the liability of its shareholders and restricts the transfer of shares. The registration process for a private limited company involves several steps, including obtaining a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the directors, obtaining the name approval for the company, filing the incorporation application with the Registrar of Companies (ROC), and obtaining the Certificate of Incorporation. Before the registration of a private limited company, its objectives are determined. The governing body for such a company is the Ministry of Corporate Affairs (MCA).
Section 2 (68) of the Companies, 2013 Act defines a Private Company as follows:
“A Company having a minimum paid-up share capital as may be prescribed, and which by its articles,— (i) restricts the right to transfer its shares; (ii) except in case of One Person Company, limits the number of its members to two hundred; (iii) prohibits any invitation to the public to subscribe for any securities of the company”
Number of Members:-
It must have a minimum of 2 directors and a maximum of 15 directors. Amongst the directors in the business at least one must be a resident of India.
Why private limited company preferred by start-ups ?
Private Limited Company is favored structure by startups in view of dependability and development openings offered by this structure. Further, it guarantees separate lawful presence from its individuals. Thus, it can include into contracts and legitimate procedures in its own name. Additionally, a company's status is unaffected from any adjustment in individuals and the board.
Separate administrative board for example Governing body is advantageous for individuals intrigued for venture reason. Where Board chips away at compensation, the individuals get benefit partaking in type of Profit.
It additionally offers different subsidizing alternatives in type of private value, ESOP and then some. This makes it progressively reasonable for outer financing choices.
Also, consequently, it is increasingly favoured by VCs, Blessed messenger Financial specialists, and other outside subsidizing offices contrasted with some other business structures. It likewise is fairly favoured by banks and loaning offices due to the believability that it holds as a corporate structure. A private company is qualified to take advantage of enlistment under Startup India Plan of Legislature of India. This plan profits numerous advantages including charge exclusions for the perceived start-ups.
In light of these reasons, it is the need for both family-based businesses and new companies. Where administration based businesses will in general picks up LLP, Pvt Ltd is appropriate for product based and development situated businesses.
Documents required for Directors & Shareholders:
- PAN Card;
- ID Proof – Voters Id / Passport / Driving License (Aadhar card shall not accepted)
- Address Proof – Latest Bank statement with transactions / Telephone bill / Mobile Bill with address mentioned (latest one or 2 months);
- Passport Size Photograph;
- Other Information (sample attached);
- Specimen Signature (sample attached). ( SHOULD BE SIGNED IN DARK INK PEN)
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 E-Moa and E-AOA to register 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 company name
- Free agreement drafting
- DSC (2 directors);
- DIN (2 directors);
- MOA (INC 33);
- AOA (INC 34);
- Certificate of Incorporation;
- Company PAN Card; and
- Company TAN letter.