Private Limited Company Registration in India

Documents Required and Procedure for Registration of a Private Limited Company.

 

What is Private Limited Company?

As per Section 2 (68) of the Companies Act 2013 private company means 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:

Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member:

Provided further that-
(A) persons who are in the employment of the company; and

(B) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and

(iii) prohibits any invitation to the public to subscribe for any securities of the company;

 

Benefits of Registering a Private Limited Company for Business

- The Company can be registered with minimum 2 members and maximum 50

- Liability of Directors to the Creditors is limited

- In case of default, in normal circumstances there is no personal liability to Directors

 

 

 

Conditions for Registering a Private Limited Company in India

Minimum Directors / Members

Minimum 2 Members and Directors are required to Register a Private Limited Company.

 

Resident Director

At least one director should be resident of India

 

Minimum Capital Requirement

Minimum Capital Requirement for a Private Limited Company is Rs. 1 Lakh.

 

Name of Company

The suggested name must be unique and should not be related to any other existing Company.

 

Registered office of Company

The Registered office should be Commercial space. No Objection Certificate of Landlord is necessary in case of Rented Office.

 

Steps involved in Registering a Private Limited Company

1. Apply for Digital Signature Certificate

2. Apply for Director Identification Number (DIN)

3. Apply for Name availability online with MCA Website

4. Filing of Memorandum of Association and Articles of Association online

5. Apply for PAN and Tax Deduction Account Number (TAN)

6. Issue of Certificate of Incorporation by ROC with PAN and TAN

7. Open Bank Account in the name of the Company

 

Documents Required to Register a Private Limited Company

To Incorporate a Company in India all Shareholders and Directors needs to produce identity proof and address proof. List of documents accepted by the Ministry of Corporate Affairs (MCA) are given below:

- Copy of PAN Card or Passport of directors (Foreign Nationals & NRIs)

- 2 Passport size photograph of directors of the company

- ID proof such as Aadhaar Card or Voter identity card of directors

- PAN card details of all the directors and shareholders

- Copy of address proof rent agreement or property papers

- Electricity or Water bill of company place

- No Objection Certificate from Landlord in case of rented office

- In the case of personal property, a copy of sale deed or property deed

 

For Foreign Nationals

It is mandatory for Foreign Nationals to submit notarized copy of the passport. The residence proof documents like a bank statement or electricity bill must be less than two months old.

 

Proof of Registered Office

In India a Company must have a registered office to get company registration. In order to show that the registered office is working , a recent copy of the electricity bill or the property tax receipt or water bill must be submitted. Along with the rental agreement, utility bill, or the sales deed and a letter from the landlord with her/his consent to be used to register the particular address as the registered office.

 

How to do Registration Process of a Private Limited Company in India

Complete process of Registration of a Private Limited Company in India is online and through the website of Ministry of Corporate Affairs i.e. http://www.mca.gov.in/