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Private Limited Company Registration

Meaning of Private Limited Company?

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Private Limited Company registration is the most popular form of a “legal structure” for all businesses in India. A private limited company can have a minimum of two members and a maximum of fifty members. The directors of a private limited company have limited liability to their creditors and Banks/Creditors are allowed to sell only the assets of the company (when there is a scenario of default).
The creditors do not have the authority to sell the personal assets of directors. Do ensure that your company is registered, for starting a company in India

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Why Register a Private Limited Company In India?

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Entrepreneurs choose to register a company due to various reasons. Two of the main reasons is that a company is a distinct legal entity having perpetual succession. Hence, a company is not affected by the death, insanity, or insolvency of an individual member. The following are some of the top reasons to register a private limited company in India.

A. Owning Assets
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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.

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C. Perpetual Succession

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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 continuous existence of a corporation or company till it is dissolved legally. Thus, a company is unaffected by death or departure of any member.

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E. Separate Legal Entity

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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.

B. Equity Raising
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A company is the only type of legal entity which 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.

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D. Limited Liability

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Limited liability is a legal responsibility towards a limited amount of debts. The liability of the members with reference to company’s debts are 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 operation of a company.

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F. Transferability of Shares

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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 shareholders agreement. The easy transferability of shares is one of the top reason, Entrepreneurs opt to register a company.

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Step By Step Process Guide to Registration of A Company

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01

Document submission

Identify the 2 directors and submit their documents as given to the below. 1. Identity Proof- PAN (Indian Nationals ) or Passport (Foreign nationals) 2. Proof of Address- Passport / Drivers License / Election ID / Ration Card / Aadhar ID 3. Proof of residence- Bank Statement / Electricity Bill / Phone Bill
02

Company Name Approval

The proposed name is applied and obtained from the Ministry of Corporate Affairs. Upto 2 names can be provided. In case of rejection of both names, an opportunity is provided for re-submission of the form with 2 more names.
03

Digital Signature Certificate

Digital signatures Certificate (DSC) must be obtained for the proposed directors of the company. Digital signature is required for signing of the incorporation application. However, digital signature is not required for obtaining the name approval.
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SPICe+ form application

On obtaining the digital signature certificate, the incorporation application can be submitted in the SPICe form with the MCA. There is no requirement for obtaining the RUN name approval for submission of SPICe Form.
05

Company Incorporation

Company is incorporated along with the incorporation certificate, PAN and TAN within 2-3 business days.

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Required documents for A Company Registration

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Here are List of required documents for Private Limited Company Registration:-

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  • Pan Card of all directors.
  • Passport size photograph of the same must be down.
  • Aadhar card & Voter Identity Card has to provided during the process.
  • If company address on rent than rent agreement also be provided.
  • Electricity bill or water bill also required on the name of business place.
  • Landlord NOC Required (Format will be shared).

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How Much i Need to Pay for Registering A Company?
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The Cost of Incorporation / Registration a Company would vary from INR 6999/- to INR 19999/- (GST Excluded) depending upon the plan you choose.

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Accounts

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Storage

Domains

Sub-domains

Basic

Rs 6999/-

* Inclusive all govt fee

2 Digital Signatures - Class 3 (2Years)

2 Director Identification Numbers

Name Approval

Incorporation Filling

MOA & AOA

PAN & TAN

Ledger Accounting Software

Standard

Rs 13999/-

* Inclusive all govt fee

2 Digital Signatures - Class 3 (2Years)

2 Director Identification Numbers

Name Approval

Incorporation Filling

MOA & AOA

PAN & TAN

Ledger Accounting Software

ESI & PF

GST Registration

Book-Keeping (Upto 75 Transaction)

Auditor Appointment

MGT-7 & AOC-4

Premium

Rs 19999/-

* Inclusive all govt fee

2 Digital Signatures - Class 3 (2Years)

2 Director Identification Numbers

Name Approval

Incorporation Filling

MOA & AOA

PAN & TAN

Ledger Accounting Software

ESI & PF

GST Registration

Book-Keeping (Upto 75 Transaction)

Auditor Appointment

MGT-7 & AOC-4

ITR - 6 Filling

1st Year GST Return Filling