Private Limited Company

Outlook of Private Limited Company Registration

Private Limited Company is the independent venture, which is the one of the most prevalent means of starting business in India. They are administered in India as per The Companies Act, 2013.

Minimum number of 2 shareholders are needed to initiate a private company, whereas the maximum number is 200 according to the Companies Act, 2013. Also stated in the Act that, in case a Private Limited Company had to face any sort of financial crisis, its investors are not subjected to sell off their own assets.

In order to register online as a Private Limited Company, only 2 directors are required initially and the maximum limit can go up to 15 directors. Minimum age of 18 years is needed to get appointed in a company as directors. In India, a foreign national is also eligible to become a director in a Private Limited Company.

There is no such requirement for any minimum paid-up initial investment for a Private Limited Company registration and they should add "PVT. LTD." at the end of their name.

A Private Limited Company always experiences a longer existence. Even if one of its members dies or goes bankrupt, the business still continues to exist. A Private Limited Company doesn't have any relationship with the general public; they are not allowed to request for any investment from people in general or public sectors. Members are not allowed to transfer shares which shield takeovers of Private Limited Company from enormous undertakings.

Some Benefits of Private Limited Company

There are immense benefits for a company registered as a Private Limited Company. These are:

• Limitation of Liability - The obligation of the members of a Private Limited Company is confined to their share as it is a different lawful entity.

• Availability of Credit- Debentures and investors can both provide capital to a Private Limited Company. A registered Private Limited Company is considered as a 'corporate entity' that draws in different private investors and financial speculators that assists them with extending and generating funds for the development of their business.

• Distinct Legal Entity - A Private Limited Company is a distinct legal entity with full legal standing to sue or to be sued. It takes on the role of an imaginary person who can purchase real estate in its own name.

• Interminable Existence- A Private Limited Company can exist indefinitely. They are considered to be an independent legitimate entity that exists independently of their owners. It implies that a company can not get dissolved for insanity, death or retirement of any one of the directors, members or shareholders.

• Performs Globally- Other types of businesses require licencing and clearance from the administration for foreign investments whereas a Private Limited Company upholds Foreign Direct Investment.

• Increased Market Value- In comparison to non-registered Private Limited Companies, registered ones are considered to be more reliable. The Ministry of Corporate Affairs' website provides easy access to information about registering as a Private Limited Company. They are trusted more by suppliers, vendors and investors over other company models. Therefore, it increases the value of the company to the customers and other investors too.

• Simplicity in Transferring Ownership- It is easier to transfer the ownership or equity to another person or member in a private company.

Requirement for Online Registration as Private Limited Company

Any company is required to know following information to initiate a Private Limited Company in India:

• It is mandatory for Private Limited Company to have at least 2 (two) directors.

• A Private Limited Company must possess a unique name that should not be registered previously.

• Minimum number of 2 (two) shareholders are required to initiate a Private Limited Company.

• It is necessary for all the members as well as directors of the respective Private Limited Company to have Digital Signature Certificate (DSA) which is required for the registration.

• There is no minimum capital needed to start a Private Limited Company.

• A decent name should be opted for the registration.

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Advantages of Private Limited Company Registration

There are numerous advantages offered to Private Limited Company. The following are a few of them:

• A Private Limited registered company provides higher credibility opportunities.

• Easier to get bank credits

• Owners are safeguarded from personal culpability as well as other risks and damages.

• Increased financial support and provides more stability

• Provides restricted liability in order to protect your company's assets.

• Increases the number of customers.

• Increases the potential to expand quickly.

Private Limited Company Registration (From Manual Form Filling to New Web- based SPICe+ Form)

SPICe+ requires numerous necessities like reservation of name, incorporation, allotment of DIN, PAN issue, TAN, EPFO, ESIC, Profession Tax (only for Maharashtra) and Bank Account opening. In addition, one can likewise gain the GSTIN by means of SPICe + structure. The process is grouped into two parts-

• Group- A

Reservation of name (Only for New Companies)

• Group- B

Incorporation of company

Application of-

• DIN

• PAN

• TAN

• GSTIN

• EPFO

• ESIC

• Opening of company's bank account

• Profession Tax (For Maharashtra)

Necessary Documents for Online Private Limited Company Registration in India (By SPICe+ form)

Some necessary documents required to register as Private Limited Company in India are-

• Memorandum of Association (MOA)

• Articles of Association (AOA)

• Office place's residential conformation

• Subscribers and director's declaration certificates

• Utility bills copy of two months

• The Global company passed resolution (if applicable)

• Incorporation of the Outer Country Body Corporate certificate (If necessary)

• Digital Signature Certificate (DSC)

• Identity proof of the nominees, applicants and subscribers

• Residential proof of the nominees, applicants and subscribers

• Directors interest other than entity (if applicable)

• Recommendation letter by the promotional company (If necessary)

• Nominee’s consent

• The clarified declaration or resolution of the unregistered companies

For AGILE-PRO:

• Proof of business place

• Authorization or Copy of Resolution letter for documents BOD

• Identity proof for bank account opening of the signatory

• Address proof for bank account opening of the signatory

• Acceptance letter of the managing committee

• Any evidence of appointment of Signatory for GSTIN

• Specimen Signature of Authorized Signatory for EPFO

Declaration-

The subscribers' and directors' declarations in 'INC-9' form must be auto-generated in PDF format and provided online. The candidate must submit the letter of recommendation, as well as a certification from a professional, such as a Chartered Accountant, Company Secretary or Cost Accountant.

Documents For Address Proof -

1. Passport

2. Voter ID card

3. Aadhar card

4. Ration card

5. Electricity bill

6. Driving licence

7. Telephone bill

Documents for Residential Proof

1. Electricity bill

2. Bank statement

3. Mobile bill

SPICe+ form Services

The following is a list of services that the Online Company Incorporation Form will provide, also known as the SPICe+ form-

• Profession Tax Registration (Only for Maharashtra)

• Registration of ESIC for the Company

• Opening of Bank Account

• Company's Registration with EPFO like an Employer

• TAN issue

• Company's Incorporation Certificate

• Issue of PAN for the Company

• Registration of the company

in GST as taxpayer

• Allotment of Director Identification Number (DIN)

Process for Online Registration of a Company as Private Limited Company

SPICe+ form dedicates 10 (ten) services through 3 (three) central government ministries and departments-

1. Ministry of Labour & Department of Revenue

2. Ministry of Finance

3. Ministry of Corporate Affairs

The new SPICe+ form is considered to be time-saving and has been consolidated for all the new companies established from February 23. SPICe+AoA, SPICe+MoA and AGILE-PRO are also required to be filed with SPICe+.

The group- A steps are:

• Select 'SPICe+' from the 'MCA Services' menu

• Then, click on ‘New Application'

• If the application already exists then one can opt for ‘Existing Application’ and fill in the application number with the approved name. After that choose ‘Type of Company’

• Click on ‘Class of Company’, and then ‘Category of Company’

• Select ‘Sub-Category of Company’

• Next, one must opt for ‘Main division of industrial activity of the Company’

• Then, it's required to mention the ‘Main division of industrial activity of the Company’

• After that, one needs to provide details of the ‘approved or proposed name’.

• Thereafter, select the ‘Auto-check’ option in accordance with the rules of administering the name.

• Finally, submit the ‘Part A’ is done which is the reservation process of the company's name or further proceed with the incorporation.

• Part B has various sections for ‘Check Form’ for each section. Some necessary details are needed like-

1. Area of the enlisted office of the company

2. Proposed subscribers and directors

3. Assets of the company

4. Tax registrations such as TAN and PAN

• Do a 'pre- scrutiny' check. An affirmation is presented upon effective submission of the form

• Download the PDF of Part B, which is required for attaching the DSC and filling out any related forms. SPICe+MoA, SPICe+AoA URC-1 and INC-9 and AGILE-PRO forms are associated with SPICe+. The SPICe+ Part B and associated paperwork can then be uploaded to the MCA portal. Then, payment for incorporation as a PVT LTD company is made through a Service Request Number. Finally, the forms will be handled once the payment has been made successfully

• If due to any processing issues the form is resubmitted, the SPICe+ form must be resubmitted in the similar manner

Consolegal Helps a Private Limited Company With-

1. Free of cost documentation and consultation

2. Initiation of action by Consolegal

3. Assistance in Form Part A and SPICe+

4. Any intermediate help (if required)

5. Assistance in Form Part B and SPICe+

6. Incorporation of company

7. Dispatch of documents

Formalities by Private Limited Companies

• Name board- Companies are needed to attach its name and area/location of its enrolled office outside every office.

• Letterhead - On all receipts, announcements and other official records of the Company, the name and registered office address of the Company must be printed.

• Legal register- All organizations need to keep a legal register for the Company containing data such as, list of board of directors, charges, register of members debentures and other necessary information regarding the Company's investors and administration

• Agreement Of Auditor - For ensuring the organization fuses, it requires the Board of Directors to assign the primary evaluator of the Company, a Chartered Accountant in 30 days of joining.

• Certificates of Shares- Companies need to establish address share certificates to the investors within two months of the accomplishment.