Private Limited Company Registration is done with the Registrar of Companies (ROC) under the Companies Act’s provisions, 2013. A private limited company is a company privately maintained for small businesses as there is limited liability for the owner of the business, and it can have a maximum of two hundred shareholders further the shareholders are restricted from trading shares publically.
Overview of Private Limited Company Registration
A private limited company is a privately operated small business; it is the most recommended form to start a business in India. The Companies Act, 2013, govern private limited company registration.
As per the Companies Act
provisions, a minimum of two shareholders is required to form a private limited company while the maximum limit for shareholders is two hundred. In case of any financial risk on the company, the shareholders of the company are safe and do not have to worry about their personal assets as private limited company registration offers limited liability for the shareholders of the company.
For online private limited company registration, a minimum requirement of directors is two while a company can have a maximum of fifteen directors as per the provisions of the Companies Act. There is no restriction on the appointment of a foreign national as a director of the company. No minimum capital is required for private limited company registration. The use of ‘Pvt.ltd.’ in the name of the company is mandatory.
- A private limited company cannot ask any collateral from the public sectors or from the general public. To protect the private limited company from takeovers by big organizations, people are not entitled to transfer shares publicly.
Advantages of Private Limited Company Registration
Documents Required for Private Limited Company Registration
- Memorandum of Association (MoA).
- Articles of Association (AoA).
- Subscribers and directors Declaration.
- Address proof of the registered office of the company.
- Utility Bills such as electricity bill, telephone bill, gas bill, water bill, etc. It must not be older than two months.
- If applicable, Certificate of Incorporation of other country body corporate.
- If applicable, a resolution passed by the global corporation.
- If applicable, a declared recommendation by the promotional company.
- If applicable, the interest of the proposed directors from other companies.
- Nominees consent.
- Nominees and shareholders’ identity proof and residential address.
- Identity proof and address proof of all the directors.
- The declaration or resolution of unregistered companies.
- If required, any other document.
- Address proof of company registered address.
- Proof of appointment of Authorized Signatory for GSTIN.
- Letter of Authorization or certified copy of Resolution passed by the Board of Directors (BOD).
- Acceptance Letter
- Managing Committee
- For opening a bank account, identity proof and address proof of Authorized Signatory.
- For EPFO, specimen signature of Authorized Signatory.
Private Limited Company Registration Online Process
SPICe+ form offers ten different services through three central government departments and ministries, such as the Department of Revenue, Ministry of Labour, Ministry of Corporate Affairs, and Ministry of Finance. SPICe+ form saves time of the applicants as well as the government officials. The forms filed along SPICe+ are AGILE-PRO, SPICe+MoA, SPICe+AoA.
Step by Step Process for Private Limited Company Registration:
- Go to the official site of the Ministry of Corporate Affairs (MCA) and under the ‘MCA Services’ click ‘SPICe+.’
- The next step is to choose the ‘New Application.’
- The applicant can prefer ‘Existing Application’ and in that fill the application number with the proposed name. Then click on ‘Type of Company.’
- Now click on ‘Class of Company’ and then on ‘Category of Company.’
- Now select sub-category of the company by clicking on ‘Sub-Category.’
- In the next step, the applicant has to choose and mention the ‘Main division of industrial activity of the company.
- Next, the applicant has to provide details of the proposed name of the company. Click on ‘Auto-Check’ to check that the proposed name is in accordance with name rules and regulations. Submit the Part- A of the form for name reservation and proceed with the incorporation process.
- Under Part- B of the SPICe+ form, there are different sections for ‘check form’ each segment. Following are the required details:
- Registered offices location of the company
- Details of propose subscribers and directors.
- Resources of the Company
- Application for Tax registration like TAN and PAN.
- A pre-scrutiny check for any mistakes is advisable. A confirmation will appear on the screen on the successful submission of the form.
- Now the applicant has to download the Part- B of SPICe+ form in PDF format for affixing the Digital Signature Certificate (DSC) for the purpose of filling up any linked forms along with Part- B of SPICe+. The various forms linked with SPICe+ are AGILE-PRO, SPICe+AoA, SPICe+MoA, INC-9, and URC-1. The applicant has to upload SPICe+ form and other linked forms on the Ministry of Corporate Affairs (MCA) portal.
- After the documents are uploaded, a service request number is generated for the payment for private limited company registration. After the successful payment, the forms will be processed.
- If there are any errors or the form needs resubmission, the SPICe+ form must be resubmitted in the same format.
Post Private Limited Company Registration Formalities
- Corporate Stationery
The business must attain the corporate stuff to use incorporation compliance matters.
- Name Board
The registered company must have a fixed board mentioning the company’s name and address at each branch.
After the registration company has to publish its name and address on the letterhead, receipts, and other official records of the company.
- Share Certificates
Within two months from the date of the establishment, the company must provide share certificates to all the contributors.
- Statutory Register
All registered companies need to maintain a register that contains details like a list of directors, debentures, charges, and other things related to shareholders and the company’s administration.
- Appointment of Auditor
Within 30 days of incorporation, a company needs to appoint an auditor and charted accountant for the company.
A private limited company is a privately operated small business; it is the most recommended form to start a business in India. The Companies Act, 2013, govern private limited company registration. As per the provisions of the Companies Act, a minimum of two shareholders are required to form a private limited company while the maximum limit for shareholders is two hundred.