Overview

In India registering your company as private limited is the first priority as it helps in the rapid growth of the business. A Private limited company comes under the Companies Act 2013 which provides various advantages including limited liability, safeguarding your assets, and has a separate legal entity. By registering as a private limited company can enhance your business credibility and reliability that helps you in getting investors for your business growth. If you want to start a business than private limited type is the best option for you as it offers flexibility and scalability 

What are the benefits of PVT LTD Company in India:

Following are the benefits of a Private Limited company in India:

Limited liability: In a Private limited company, every member or shareholder liability is limited. In a case if a company faces the loss under any circumstances in such a situation the shareholders property and assets are safeguarded. The personal and individual assets of the shareholders are not at risk in a private limited company. 

Separate legal Entity: A private limited company has the advantage of a separate legal entity from other businesses. The company shareholders can take part in the contracts and own assets as they will be protected in a private company. 

Membership: To establish a private company you require a minimum of two shareholders. But you can also add a maximum number of 200 members. There need to be two directors to control the company. 

Ease to Raise Funds: You can easily raise the fund as a private limited company because people consider it more reliable a private limited company than others. It also attracts more investors for the development of the company. 

Enhance Trust and Credibility:  it is considered more reliable and credible in the market than other categories of company for business. It becomes a beneficial point to build a strong image in the marketplace. 

Tax Benefits: As a Private Limited company you can avail many benefits offered by the Indian government such as the reduction of the tax on expansion of the business, benefits on capital profits, and lower tax rates for small entities. 

Minimum capital: For starting a private limited company you need to maintain a minimum capital of  Rs.1 lakh. It can be increased as prescribed by MCA from time to time.

Maintain Privacy and Confidentiality: In a private limited company, you need to maintain the privacy policy as information of the shareholders or directors can’t be shared publicly. It helps to manage the privacy of the business objectives and operations. 

Easy Transformation of the Ownership: You can easily transfer the ownership of the private limited company. Without disturbing the company’s operation it also attracts new investors for the business. 

Perpetual succession: Registered as a private limited company you can avail the benefit of a perpetual succession. This means that if any member of the company dies or the company gets closed or bankrupt, the company will continue as it is working in the eyes of the law. The company’s life will be forever and not affected by the lives of its shareholders. 

How can register a Private Limited Company in India: 

If you are looking for registering your Private limited company then it can be difficult due to  its complicated procedure of the registration and its rules. But you don’t need to worry about it as we are here to you at every step of the private limited Company registration.

  • Step 1: Apply for a Digital Signature Certificate (DSC): It is the first step to register your private limited company, you need to apply for the Digital Signature Certificate  as it is the mandatory document. Whoever is involved in the  Memorandum of Association (MOA) and Articles of Association (AOA) need to get a digital signature. 
  • Step 2: Obtain a Director Identification Number (DIN):  DIN is important to become a director of a private limited company. You can apply for DIN in three ways by filing specific forms or seeking help from expert services.
  • Step 3: Name Approval:  You need to choose the company’s name that must meet the MCA guidelines. For this you must fill SPICe+ form or apply for both name approval and incorporation together.
  • Step 4: Fill Form SPICe+ (INC-32): This form makes your incorporation simple. It helps in the reservation of the company name, incorporation of the company, and application for the TAN,PAN and other registration. 
  • Step 5: e-MoA and e-AoA: These electronic documents replace the physical filing of Memorandum and Articles of Association. These documents must be digitally signed by the directors of the company. 
  • Step 6: Apply for PAN and TAN: You need to apply for the PAN and TAN for the company with the help of SPICe+ form. Once your application gets approved, you will get a Incorporation certificate, TAN, PAN and a Corporate Identity Number (CIN).

FAQ’s 

1.Can I register the Pvt Ltd Company myself?

Ans. Yes, If you want to start a business in India then you can apply to the Ministry of Corporate Affairs (MCA). You can also apply remotely through the government  MCA portal. It is a necessary document to complete the registration process of a private limited company. 

2.What is the eligibility to be director of a Private Limited Company?

Ans. For a private limited company to become a director, you need to be at least 21 years old under Section 157 of the Companies Act.

3.Which  documents are necessary for registering a Private Limited Company? 

Ans. The documents required for registering a  Private Limited Company include Aadhar card, Pan card, Passport, Driving license, Latest electricity bill, Latest telephone bill, DIN (DPIN in case of LLP) and DSC of all the directors, documents of the Company or LLP, rent agreement in case the property is rented, NOC granted by the landlord to use the premises as the company’s Registration office, Sale deed of the company office premises.

4.How many types of company in India and define? 

Ans. There are six types of company in India which are given below: 

5.What is the importance of DIN?

DIN stands for Director Identification Number. It  is a unique identification number provided by the government throughout the process of company registration. It is necessary documents for the directors of the companies. 

6.What is the need of  DSC?

DSC stands for Digital Signature Certificate. It is an established digital instrument for digital document signing & data storage.

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