Private Ltd. Partnership Registration Online-An Overview
What is a Private Limited Company?
It is that in which private ownership is used in Indian laws. There is no role of government in private limited. At least two members are compulsory for the formation of private limited. There is a limited liability and depending on each one's point of view. Shares can be sold to shareholders in the business that means we cannot liquidate them.
Why We Need Private limited?
Private limited companies have the ability to collect the funding from any sources because we can enjoy the brand image. It is always an ideal type of business organization for growing our business organization.
GST registration usually takes between 2-6 working days. We’ll help you to register for GST in 3 easy steps.
*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification will come into effect from 1st April 2019.
Why We Need GST Registration?
Online trading is impossible without a GST number. It is only possible when you have registered your firm/company under a GST registration. In case you want to deal with big brands of e-commerce like amazon, flip cards. You also required a GST number.
Register a Pvt Ltd Company
Company is a popular option to start a business in India by startups and businesses with higher growth aspirations. Pvt Ltd company is incorporated under the Companies Act of 2013, and governed by the Ministry of Corporate Affairs (MCA). 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.
Private Limited Company vs. LLP
Pvt Ltd Company and LLP both are limited liability structures. However, companies offer certain key advantages, especially for startups. Ownership of the company is defined by share capital, which is easy to transfer compared to ownership transfer in LLP. Also, it clearly differentiates management and ownership. Hence, it is preferred by VCs, angel investors and banks for providing debt or equity funding.
However, one should also consider higher compliance and mandatory audit requirement, making it an expensive structure to maintain.
Why Choose Company Registration in India?
Registering a company offers many benefits. A registered company increases the authenticity of your business. It helps your business -
- Shields from personal liability and protects from other risks and losses.
- Attracts more customers
- Procures bank credits and good investment from reliable investors with ease.
- Offers liability protection to protect your company’s assets.
- Greater capital contribution and greater stability
- Increases the potential to grow big and expand
Checklist for Registering a Company in India
As defined under the Companies Act 2013, we have to ensure the requirements of checklist
A private limited company must have at least two directors and at most, there can be 15 directors. Among all the directors in the business, at least one must be a resident of India.
The name of your business must be unique. The suggested name should not match with any existing companies or trademarks in India.
Minimum Capital Contribution:
There is no minimum capital amount for a company. A company should have an authorized capital of at least Rs. 1 lakh.
The registered office of a company does not have to be a commercial space. Even a rented home can be the registered office, so long as an NOC is obtained from the landlord.
A detailed registration process
Company Registration in India will boost the progress of startups and provide an additional edge over those who have not registered. The Ministry of Corporate Affairs governs the company registration process with rules and regulations framed following the law.
- 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 EMoa and eAoA to register a 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 the company name
- KYC documents of all directors (Aadhar card, Pan Card, Email id, Contact number, Passport photo, Bank statement of 3 months)
- Latest electricity bill of office premises
- Company name
- Business activity
- Paid up capital
- Authorized capital
Do I need to be physically present during this process?
No, new company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.
How much time is needed for setting up a private limited company in In
If you have all the documents in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar.
What are the rules for picking a name for a private limited company?
The Registrar of Companies (RoC) across India expects applicants to follow a few naming guidelines. Some of them are subjective, which means that approval can depend on the opinion of the officer handling your application. However, the more closely you follow the rules listed below, the better your chances of approval. First, however, do ensure that your name is available.
What documents are required to complete the process?
All directors must provide identity and address proof, as well as a copy of the PAN Card (for Indian Nationals) and Passport (for foreign nationals). No-objection Certificate must be submitted by the owner of the registered office premises.
What is a DSC?
The DSC is an instrument issued by certifying authorities (TCS and n-Code are two of them) by which you can sign electronic documents. As all documents needed are electronic, partners need a DSC.
Does a private limited company have continuous existence?
Yes, so long as the annual compliances are met, the private limited company will continue to exist. If you do not comply with the requirements, it will go dormant, until it is struck off the register altogether.
- An agriculturist – for the purpose of agriculture
- Person exclusively supplying goods/ services not liable to tax or wholly exempted from Tax
- Services by any Court or Tribunal established under the law
- Services by an employee
- Services of funeral, burial, crematorium or mortuary, including transportation of the deceased
- Sale of land subject to Schedule 5 (ii)(b), sale of building
- Actionable claims, other than lottery, betting and gambling
- Person falling below threshold exemption limit prescribed
How much does it cost to run a private limited company?
The can be divided into four categories: cost of setting a private limited company, cost of accounting and auditing, cost of compliance and miscellaneous expenses. At the very minimum, you can expect to spend Rs. 40,000 on all of these.
Is it necessary to have a company’s books audited?
Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs or rupees and even lead to the blacklisting of directors.
Are two directors necessary for a Private Limited Company Registration?
Yes, a minimum of two directors are needed for a private limited company. The maximum members can be 200. You can register as a One Person Company,, if you are the sole owner of the company.
Who can be in a Private Limited Company?
Any individual/organization can become a member of a private limited company including NRI/foreigners. Nonetheless, the individual must be 18+ above in terms of age and should hold a valid PAN card.
What is the minimum capital needed to form a Private Limited Company?
There is no minimum minimum required for starting a private limited company.
Can the director of a private limited company also be a salaried person?
Yes, a salaried person can become the director in a private limited, LLP or OPC private limited company. One needs to check the employment agreement if that allows for such provisions. In a lot of cases, the employers are quite comfortable with the fact that their employee is a director in another company.
- Internet Banking
- NEFT or RTGS
This amount shall be credited to the electronic cash ledger of the registered dealer.
Can the limited liability partnership (LLP) be converted to a Private Limited Company?
No, one cannot convert an LLP into a Private Limited Company as it is not a MCA. The LLP Act, 2008 and the Companies Act, 2013, both don’t have any provisions on conversion of the LLP in a private limited company. However, if one wants to expand their business they can register a new Private Limited Company with the same name. The LLP Company needs to just issue a no objection certificate.