Private Limited Company Registration in India

In India, the operation of partnership firms is governed by the Indian Partnership Act of 1932. Those who unite to create a partnership firm are referred to as partners, and the formation of the partnership firm is based on a contractual agreement among these individuals. The agreement among partners is commonly referred to as a "partnership deed."

• Company Limited by Shares: Shareholders' liability is limited to the nominal share amount mentioned in the Memorandum of Association.

• Company Limited by Guarantee: Member liability is limited to the amount of guarantee specified in the Memorandum of Association. This guarantee is invoked only during winding up.

• Unlimited Companies: Members of unlimited companies have unlimited personal liability for the company's debts and liabilities. However, they are still considered a separate legal entity, and individual members cannot be sued.

A Private Limited Company Incorporation is one of India's most popular business structures. It offers several advantages and some disadvantages, let us explain.

• Limited Liability: Shareholders' responsibility is restricted to the extent of their capital contribution, safeguarding personal assets from the company's financial obligations and liabilities.

• Distinct Legal Identity: A Private Limited Company possesses an independent legal identity distinct from its proprietors. It has the capacity to own assets, engage in contractual agreements, and initiate or defend legal actions under its own name.

• Continuous Existence: The company's existence persists irrespective of shifts in shareholders or directors. Its existence is not contingent upon the lifespan of its associates.

• Ease of Funding: Raising capital by issuing shares to investors, venture capitalists, or angel investors is easier. This structure attracts external investment.

• Tax Benefits: Private Limited Companies may qualify for various tax benefits and exemptions, making them tax-efficient entities.

• Credibility and Trust: Having "Pvt. Ltd." in your company name often instills more confidence and trust in customers, suppliers, and partners.

• Compliance Burden: Face regulatory demands, including financial reporting, filings, and audits.

• Complex Setup: Process and cost for managing are higher than more superficial structures.

• Share Limits: Restricted share transfers; max 200 shareholders in India.

• Public Disclosure: Financial info is publicly viewable, impacting privacy.

• Exit Complexity: Selling or leaving is more complicated than with other structures.

• Slower Decisions: The involvement of shareholders and directors may slow choices.

Directors and Members:

A minimum of two directors and 200 members are required for Private Limited Company Registration in India, as per the Companies Act of 2013.

Directors must have a Director Identification Number (DIN) issued by the Ministry of Corporate Affairs (MCA).

At least one director must be an Indian resident, having spent 182 days in India in the previous calendar year.

Company Name:

When selecting a name for a private limited company registration in India, two factors must be considered:
The name should reflect the principal activity of the business.

Address of the Registered Office:

After the company registration process, the company must provide the permanent address of its registered office to the company registrar. Business operations occur in this office, and all relevant company documentation is maintained.

1. step 1: Acquire a Digital Signature Certificate (DSC):

   Every director and shareholder must secure a Digital Signature Certificate (DSC) issued by the Controller of Certification Agencies (CCA). This involves providing essential details such as passport-sized photos, PAN, Aadhaar Card, phone number, and email address. Foreign nationals should also furnish notarized and apostilled documents if applicable.

2. step 2: Director Identification Number (DIN):

   Obtain a Director Identification Number (DIN) if you intend to be a director in the company. DIN is essential for directors and needs to be provided in the registration form.

3. step 3: Name Reservation for the Company (SPICe+ Part A):

   Begin by completing the SPICe+ Part A form to secure a unique company name. This entails selecting the company type, class, category, and sub-category, specifying the primary division of industrial activity and offering a comprehensive business description. You'll need to propose two names for approval.

4. step 4: Submission of Company Details (SPICe+ Part B):

   Provide comprehensive information concerning capital, registered office address, subscriber and directors' details, stamp duty, PAN and TAN application, and necessary attachments. Ensure compliance with the Companies Act 2013 and obtain digital signatures from assisting professionals.

5. step 5: Preparation and Submission of Incorporation Forms (SPICe+ MOA and AOA):

   Draft the Memorandum of Association (MOA) and Articles of Association (AOA) containing crucial company details. Obtain digital signatures from subscribers and professionals before submitting these documents to the MCA for approval.

6. step 6: Additional Registrations (AGILE-PRO-S Form):

   File the AGILE-PRO-S form to register for GST, EPFO, ESIC, a bank account, and a shop and establishment license (which may be state-dependent).

Certificate of Incorporation

Upon successful document verification, the MCA will issue the Certificate of Incorporation (COI) with the Company Identification Number (CIN), PAN, and TAN.

For Indian Nationals: Self-attested PAN card copy, passport-sized photo, Aadhaar Card, proof of identity, and address proof.

For Foreign Nationals: Notarized documents, passport-sized photo, passport, and address proof.

Registered Office Documents: Proof of business address, copy of the rent agreement (if applicable), and owner's no objection certificate.

Following incorporation, adhering to post-registration company compliances is essential to streamline company operations and define the roles and responsibilities of directors and shareholders.

PKRIDS specializes in Private limited Company Registration services in India, providing comprehensive guidance and support throughout the registration process. Our team of professionals offers expert consultation tailored to your specific requirements and business goals.

Selecting the appropriate name for your company incorporation is critical, and PKRIDS' experts will aid you in choosing a unique and fitting name that aligns with ROC guidelines. We'll conduct a name availability search and facilitate the reservation of your chosen name, reflecting your business identity.

Compiling the necessary documentation for company registration in India can be overwhelming, but our experts will handle this task efficiently. We will guide you in assembling all required documents, ensuring accuracy and compliance.

To register a private limited company, directors must obtain a Digital Signature Certificate and Director Identification Number (DIN). We will guide this process to ensure you possess the certifications for seamless registration.

By choosing PKRIDS for your Company Registration needs, you can be confident that your company registration process will be managed professionally and effectively. We aim to simplify the process, allowing you to concentrate on your business objectives while we address the legal requirements. Embark on your entrepreneurial journey with assurance by registering your company through PKRIDS.