A Private Limited company is a business entity template registered under the Companies Act of 2013. The Limited in the Private Limited company means that it limits its shareholder’s liability to their shares owned in the company. And the private means the restricted access it provides to its shareholders in terms of share transferability. A Private Limited company needs to be registered under the Ministry of Corporate Affairs (MCA) to attain a status of a legal entity in the market. This article details to its readers the complete process of a Private Limited Company registration under the MCA.
Why opt for a registered Private Limited Company?
The private limited company is the most prominent business model opted for by people. It is the prepared choice for almost all the startups in the country. Consequently, some of the reasons why the majority of people opt for this particular business model are listed below:
- Ease in getting loans: It is easy to acquire loans for a business incorporated as a private limited firm.
- Perpetual succession: A registered Pvt Ltd company functions even after the member(s) leave the company. It is like a living reality separate from its directors and shareholders.
- Separate legal entity: A registered private limited company is a legal entity with a different identity from its members.
- Tax exemption benefits: Government extends a ton of tax exemption benefits to a registered Private Limited company.
- Limited Liability: The liability of the shareholders in a registered private limited company limit to their stakes in the company. They are not responsible for the losses incurr by or debts of the company.
- Privacy: The share transferability is possible only among its registered shareholders, and the shares are not accessible to the general public.
Eligibility Criteria for Private Limited Company Registration
The defined business structure of a private limited company is such that it has to subscribe o the regulations set forth by the MCA for its successful registration.
- Firstly, A minimum of two member directors is necessary for a Pvt Ltd company registration.
- After that, A minimum of two shareholders and a maximum of 200 shareholders allow for a Pvt Ltd Company.
- Then, At least one of the directors of the Pvt Ltd Company must be from India.
Required Documentation for Pvt Ltd Company Registration
To legally register a supposed Pvt Ltd Company with the MCA (Ministry of Corporate Affairs), the applicant must file the registration application along with the following documents as asked by the authority:
- A self-attested PAN card copy of the applicant.
- Recent passport-sized coloured photographs of the applicant. The photograph must be not more than two months old.
- Self-attested copy of the Proof of Identification like Driving License, Passport or Voter ID, etc.
- Self-attested copy of the Proof of Residence like passbook, bank statement, landline bill, mobile bill, electricity bill, etc.
- Proof of address of the Pvt Ltd company like electricity bill, telephone or mobile bill, gas bill, etc. In the case of a rented property, the applicant must submit the Rent Agreement (If Rented) and a No-Objection Certificate (NOC) from the landlord.
Private Limited Company Registration Process
The step-by-step procedure for the registration of a Pvt Ltd Company is as follows:
- Choose a unique name for the registered Pvt Ltd company.
- Reserve the selected name of the Pvt Ltd company using the RUN application.
- Register for and obtain the Digital Signature Certificates (DSCs) for the Pvt Ltd company’s directors.
- Register for and obtain the Director Identification Numbers (DINs) for the Pvt Ltd company’s directors.
- Draft the Memorandum of Association (MoA) for the Pvt Ltd company. The MoA must state some specific objects for which the company is incorporated, such as Name Clause, Registered Office Clause, Object Clause, Association Clause, Capital Clause, Liability Clause etc.
- Draft the Articles of Association (MoA) for the Pvt Ltd company.
- Submit the application online with the requisite documents for the Pvt Ltd company incorporation.
- The MCA will then assess the submitted application and issue directives or summons in case of any discrepancy(s) arising during the assessment.
- Upon successful verification, the MCA will issue the Certificate of Incorporation of the Pvt Ltd Company to the applicant.
Also Read: Importer License: Key points to Note and Documents to Submit
Register your Private Limited Company with us
The Registrationwala can assist you, or better to say, will register your proposed Pvt Ltd Company to the MCA. However, We provide our clients with holistic supervision throughout the registration process of their proposed company. Our services include:
- Firstly, Conducting the name search for your company and reserving the name proposed by you for the company.
- Secondly, Register for and obtain the required DSCs and DINs for your directors.
- After that, Draft the MOA and AOA for your proposed Pvt Ltd company.
- Then, Furnish the required documents.
- Consequently, File the online application for registration along with the documents.
- Review the application and submit it to the authorities.
- Meanwhile, Conduct department follow-ups with the Ministry of Corporate Affairs during the application assessment.
- At the last, Deliver you the Certificate of Incorporation.
Legal experts like CA or CS can only deal with the process of private limited company registration. Registrationwwala provides you with this kind of seasoned legal expertise to register your firm. So contact us if you are seriously serious about registering your business idea into a private limited company.
