What is Company Registration?
Private Limited Company, the most popular legal structure for businesses, should be selected by anyone looking to build a scalable business. Start-ups and growing businesses choose to register a company in India because it allows outside funding to be raised easily by divesting their stake; it limits the liabilities of its shareholders and enables them to offer employee stock options to attract top talent. These entities tend to be viewed as extremely credible as they must hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA). At Efiling cart, we are available at all times to help you understand how to register a private limited company.
The average time taken to complete a Private limited Company registration is about 10 – 12 working days, subject to government processing time and client document submission.
Advantages of a Private Limited Company
Documents Required for Company Registration
TO BE SUBMITTED BY DIRECTORS & SHAREHOLDERS
- Scanned copy of Pan Card or Passport (Foreign Nationals and NRI’s)
- Scanned Copy of Aadhaar Card/ Passport/ Voter’s id
- Scanned passport sized photograph
- Scanned copy of latest Bank Statement/Mobile Bill/ Gas Bill or Electricity Bill.
FOR THE REGISTERED OFFICE
- Scanned copy of notarized rental agreement by the director on behalf of the proposed company. (After name approval process)
- Scanned copy of NOC from Landlord.
- Scanned copy of Latest Electricity bill/ Telephone(Landline) Bill/ Gas Bill.
Note : Your registered office need to be a commercial space; it can be your residence, too.
Company Registration Process
1 WORKING DAY
All directors must apply for the Digital Signature Certificate (DSC), which is necessary to file the company registration documents by applying for a Director Identification number (DIN).
2 WORKING DAYS
As soon as we apply for the DSC and DIN, we will ask you to pick a name for your company, and send us some scanned documents regarding it and its directors. Our suggestion is to give a minimum of 3 names. The Registrar of Companies shall select the appropriate name.
6 WORKING DAYS
Once the name is approved, the final form preparation will begin which shall include the rent agreement for the proposed registered office of the company. At this stage INC-32 along with the MOA and AOA of the company shall be filed.
1 WORKING DAY
Every company needs a registered Permanent Account Number (PAN) and Tax Account Number (TAN). We will make the application online ourselves. The PAN and TAN will be couriered to your registered office address in 21 working days.
|Private Limited Company||Limited Liability Partnership||One Person Company|
|Start-ups and growing companies||Professional services firms||Sole promoters|
Ease of Accommodating Investment
|Very easy to accommodate||Possible, but unlikely||Possible, but severely unlikely|
Limited Liability Protection
|Few benefits||Most efficient||Few benefits|
|Know More »||Know More »||Know More »|
WHY DO STARTUPS PREFER PRIVATE LIMITED COMPANIES?
Startups set up private limited companies so that they can raise venture capital funding and offer ESOP’s which is important for the business to scale into a larger business. Banks and other Lenders also prefer private limited companies over other forms.
HOW MUCH DO YOU NEED TO INVEST?
Great News!! The minimum paid up capital is one lakh which can be paid at anytime in the future by the company and need not be deposited at the time of incorporation. Most entrepreneurs do bring computers and other necessities at the beginning, which can be assets of the company.
WHAT IS DIGITAL SIGNATURE CERTIFICATE AND WHY IS IT REQUIRED FOR COMPANY INCORPORATION?
Digital Signature Certificate (DSC) as the name suggests it is a digital signature of an individual and it is required for filling the e-forms of company incorporation electronically to Ministry of Corporate Affairs.
WHO CAN BECOME A DIRECTOR OF A PRIVATE LIMITED COMPANY?
The Director required to be above 18 years of age and must be an individual. He may or may not be citizen or residence of India. We can say that even foreign nationals can be Directors in Indian Private Limited Company but at least one director must reside in India during majority of the calendar year.
WHAT IS THE LIMIT OF MEMBERS TO FORM A PRIVATE LIMITED COMPANY?
In case of Private Limited Company, minimum no. of members are two and maximum are two hundred.
HOW MUCH MINIMUM CAPITAL REQUIRED TO FORM A PRIVATE LIMITED COMPANY?
In case of Private Limited Company, minimum capital required is Rs.1,00,000/-.
WHAT IS MEMORANDUM OF ASSOCIATION & ARTICLE OF ASSOCIATION?
MOA & AOA of the company defines all the rules and regulations and the working flow of company. It also defines everything about the company’s objects, capital, identity, goals and working pattern. After the name of the company is select the Memorandum of Association and Articles of Association of the company is required to be drafted.
WHAT IS THE MINIMUM AND MAXIMUM LIMIT OF DIRECTORS TO FORM A PRIVATE LIMITED COMPANY?
In case of Private Limited Company, minimum no. of directors is two and maximum are fifteen. Special permission is required for exceeding the limit of 15.