Private Limited Company Registration is done with the Registrar of Companies (ROC) under the Companies Act's provisions, 2013. A private limited company is 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 provisions of Companies Act, 2013, governs 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 agonize 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
Documents Required for Private Limited Company Registration
Memorandum of Association (MoA).
Articles of Association (AoA).
Subscribers and directors Declaration.
Address proof of the company's registered office.
Utility Bills like water bill, gas bill, telephone bill, electricity bill, etc. It must not be older than two months.
If applicable, Certificate of Incorporation of other country body corporate.
If needed, 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 residential address proof of all the directors.
The declaration or resolution of unregistered companies.
If required, any other document.
For AGILE-PRO:
Address proof of company registered address.
Appointment Proof 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.
Step by Step Procedure of Private Limited Company Registration
To duly complete the Registration process of Private Limited Company in India an applicant has to follow the below-mentioned steps and before starting the registration process, applicant entity has to ensure that all the documents mentioned above in this article are collected.
Step 1: Name Search
The first step in the process of a Pvt. Ltd. Company registration is to search a name for the company. The name should be unique and must not be identical to any other register organization. The applicant can apply for a company name directly through Incorporation Form SPICe+.
Step: 2 Obtain Digital Signature Certificate and Director Identification Number
For Company registration, DIN and DSC are obligatory. Digital signatures are necessary because the registration process of a company is online, and the registration form requires a digital signature certificate.
Step: 3 File Memorandum of Association and Article of Association
After obtaining DIN and DSC, the applicant then has to file E-MOA (INC-33) and E-AOA (INC-34). AOA and MOA are very important documents for the registration of a Private Limited Company. AOA represents the rules and regulations of the company. In contrast, MOA defines the vision and scope of the company.
Step 4: Issuance of Certificate of Incorporation
After the authorities have verified of all the documents submitted by the applicant entity, the registrar of companies will issue the incorporation certificate for the Pvt. Ltd. Company in which the PAN number of the company and the date of incorporation is mentioned. After that, the applicant has to open a current bank account in the name of the company. Once the applicant gets the certificate of incorporation, along with PAN and TAN application from the Ministry of Corporate Of Affairs (MCA).
Conclusion
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, governs Private Limited Company Registration. As per the Companies Act, 2013 a minimum of two shareholders are required to form a private limited company while the maximum limit for shareholders is two hundred.
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