Private Limited Company Compliance

As per Section 2(68) of the Companies Act, 2013, “Private company” means a company having minimum paid-up share capital as may be prescribed and which by its articles,— restricts the right to transfer its shares if any; Prohibits any invitation to public subscribe for…

Register a Private Limited Company

Set out on your entrepreneurial voyage backed by a Private Limited Company. This company type offers flexibility, a distinct legal identity, and an easy incorporation process. Having GarudaMudra means you have a master hand-holding you all the way!

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If you have visions of opening a business in India, the first step you will need to take is selecting an appropriate legal identity. Private Limited Company is the most preferred way to start a business as it provides benefits in all aspects—be it raising funds, limiting the liabilities, or ease of doing business.

Here are the Four Basic Steps to Register Your Private Limited Company in India:

1. Get Digital Signature Certificate (Not applicable on your Name)
2. Get a Director Identification Number (DIN)
3. Hey, how to book a company name and file the SPICe+ form
4. We will help you get your PAN, and TAN
5. Pros of a Pvt Ltd Company

There are several advantages of a private limited company that make it an intelligent choice:

Limited Liability

Your personal assets are safe. Members are only liable for the debts of the company to this market value of their shares.

Separate Legal Identity

The company is considered an independent legal person. It keeps its own assets and debts, so creditors cannot directly sue owners.

Credibility and Trust

Private limited company registration is governed by the Ministry of Corporate Affairs as now a newly-established companies are registered with Registrar of Companies (ROC) under Companies Act, 2013. Anybody can check the information on government’s MCA portal, this enhances clients and investors confidence.

Continuous Existence

Even if one or more partners depart, retire, or die, the partnership persists until it’s formally dissolved.

Tax Benefits

Private Limited Companies that are startups can avail 100% tax deduction for consecutive 3 year in terms of Section 80IAC of the Income Tax Act.

Easy Funding

FUNDRAISING: Raising money may be simpler since private limited companies can bring in angel investors and sell shares to raise money.

Criteria for Private Limited Company Registration in India

1. You need to fulfill the following requirements: To set up a private limited company, you have to fulfil below conditions under the Companies Act, 2013.
2. Minimum 2 directors (maximum 15). One should be a resident of India atleast.
3. Minimum 2 shareholders (maximum 200).
4. The company name should be distinct and cannot conflict with an existing company or trademark.
5. Minimum capital requirement: ₹1 lakh.
6. The company needs to have a registered office address (a rented home is also ok, along with the landlord’s NOC).

Documents for Pvt Ltd Company Registration

For Indian Directors and Shareholders:

1. ID Proof (PAN, Aadhaar, Passport, Driving License), self-attested
2. Proof of address (Current electricity / telephone bill, or bank statement)
3. DIN and DSC for directors

For Foreign Nationals:

1. Passport (mandatory)
2. Self-attested photo ID proof (Driving License, Resident Card etc.)
3. 2 Identity Proof (Electricity/Phone Bill, Bank Statement etc.)
4. Incorporation Certificate of the parent company (as applicable)
5. Board resolution authorizing investment

Procedure for Registration of Private Limited Company in India

The registration includes some steps which can be explained online, but by us of Garudamudra feels relaxed.

1. Get Digital Signature Certificate (DSC)
2. For the electronic filing of a document.
3. Apply for DIN

All directors must obtain a Director Identification Number (DIN).

1. Name Approval
2. Name reservation via SPICe+ in select names.
3. File SPICe+ (INC-32)
4. A web interface has made it easier than ever to incorporate with the MCA.
5. File e-MoA & e-AoA
6. Prepare and file the Memorandum of Association (MoA) and Articles of Association (AoA).
7. Get PAN & TAN
8. Issued automatically after incorporation.
9. Upon approval you will be given a Certificate of Incorporation with a Corporate Identity Number (CIN).

Capital Requirement

1. Face Value of a Share: Can be set as ₹1, ₹10, ₹100 etc.
2. Authorized Capital: Usually commences at ₹1 lakh but can be increased later by paying additional fees.
3. Paid-up Capital: The real sum of money shareholders injects (it mustn’t exceed the authorized capital).

Compliance After Incorporation

1. Directors KYC: Required to maintain updated record with MCA.
2. Business Commencement: Open an active bank account within 180 days of depositing subscription money.
3. Yearly Filings: File Form MGT 7 and AOC 4 every year.
4. Income Tax Return:It is compulsory to file ITR-6 every year.

Bank Account Details for Private Limited Company

1 Open a current account, provided you do this within 180 days with:

Certificate of Incorporation

1. Directors’ KYC
2. Board Resolution
3. Company Address Proof
4. GST Registration

While it is not mandatory in some cases you can opt for GST registration as part of the application for company incorporation.

Time & Cost of Registration

Normally, it takes 7-10 working days to complete the whole process. If there are more directors and you have higher share capital or if professional fees are to be included, cost may range to be ₹6,000 – ₹30,000.

GarudaMudra’s Assistance in Company Registration

Having been a part of StartUp Ecosystem, at GarudaMudra – we ensure you end-to-end support for private limited company registration:

1. Name research & reservation
2. Getting DSC & DIN
3. Drafting MoA & AoA
4. Filing applications
5. Coordinating with MCA until approval

Our staff are dedicated in helping you to start your business the fast and easy way.