Private limited company registration requires some legal steps and thoughtful processes. To complete the process of online company formation, you need to know about what is a private limited company, how to form private limited company, required documents for a company formation, benefits of private limited company formation, etc.
As a reputable firm of Chartered Accountants in Mumbai, we have years of experience in helping our clients in private limited company formation. Since the time of enquiry to arranging documents till submitting these online, we get in touch with you in the entire journey and guide you properly at every step until you can complete all.
Know more about Private Limited Company
What is Private Limited Company
A private limited company is a privately held/owned business entity used in many jurisdictions in contrast to a public ownership. It is basically one type of business structure that limits the liability of the owners to their shares and restricts shareholders from publicly trading shares. The number of shareholders can reach up to 50.
The private limited companies get registered with Ministry of corporate affairs MCA.
Benefits of Private Limited Company Formation
❯ Limited liability
❯ Legal Identity
❯ Trustworthiness
❯ Numerous tax benefits
❯ Recognition to the business
❯ The opportunity of getting investment
❯ Restricted trade of shares
❯ Funding for your business
❯ Continued existence
❯ Limited risk to personal assets
❯ Raising capital
❯ Continue existence
❯ Your liability as an individual is limited
❯ Enhanced brand image and improved trust factor
Documents required for Company Registration
❯ Address proof for registered office address
❯ Passport
❯ Telephone Bill
❯ Election Card or Voter Identity Card
❯ Aadhaar Card
Ration Card
Utility Bill like Electricity Bill, Telephone Bill
Driving License
Required time to register a Company
❯ 2 days to get a digital signature certificate
❯ 1 day for getting director identification number (DIN)
❯ 5 days for the approval of the name
❯ 5 days for company registration
❯ From the above time calculation, the total days required is 13 days
6 Step Company Registration
A private limited company is the most common form of business entity prevalent in India. It is very easy to register, start, maintain and raise funds. A private limited company offers limited liability to its members, ensuring flexibility and assuring easy bank loan accessibility.
There are 6 simple steps laying ahead of you for the private limited company formation.
Step 1: Obtain Digital Signature Certificate
Digital signature certificate of the personnel is needed in Private Company Incorporation in India. The digital signature certificate is required for filling of e-forms online on the portal of MCA (the Ministry provided portal for online registration). Digital Signature Certificate is issued by the Certifying Authority in token form. It is valid for 1 or 2 years.
List of documents required for digital signature certificate:
❯ Passport size photograph of the applicant or applicants
❯ Self-attested Address proof of the applicant or applicants
❯ Self-attested PAN card of the applicant or applicants
Step 2: Obtaining Director Identification Number (DIN)
Director Identification Number or DIN is a unique identification number given by the Ministry of Corporate Affairs to the individual or in duals applying for the allotment of DIN. The number is assigned for a lifetime by the Ministry unless the holder or holders surrender or withdraw it.
The director or directors of a company shall receive and intimate the DIN during the time of Private Ltd company incorporation. Getting DIN is mandatory for getting an appointment as Director in any Company. The director or directors can use the DIN number for other company formation. He/she/they can get an appointment as Designated Partner in the LLP.
List of documents required for digital signature certificate:
❯ Passport size photograph of the applicant or applicants
❯ Self-attested address proof of the applicant or applicants
❯ Self-attested PAN card of the applicant or applicants
Step 3: Application for Company Name approval
The applicant or applicants can propose one or more suitable name for the company. It allows you to enjoy the flexibility while choosing the name until it is getting identical or similar to registered business entities or trademark.
Given below are conditions imposed on it
❯ The name chosen for a new company registration should not be similar or identical to any registered company or trademark.
❯ The name should not be one objected or prohibited under the Emblems and names Act, 1950.
❯ The name of the company must include the suffix "Private Limited Company".
When the application for the company name or names are submitted, the registrar review, tally and approve one of the names requested by you. The process usually takes 3 to 5 working days to get approval.
Step 4: Filing for Incorporation of Private Limited Company
After the approval of the name or names, the promoters need to submit the application and prescribed fees along with the documents mentioned below:
❯ Articles of Association (AOA)
❯ Affidavits of the Directors
❯ Declaration from Directors
❯ Memorandum of Association (MOA)
The applicant or applicants must submit the relevant information regarding this to the registered office within 15 days of registration or during filing of incorporation documents.
Step 5: Subscriber Information
As per the Companies Act 2013, a subscriber has to sign his or her name. Each of the subscribers must share the company incorporated. They must have at least one share of the company. Each subscriber must sign over the memorandum in presence of at least one witness. Each of these must clearly state the following statements:
❯ Address
❯ Personal Description
❯ Occupation
❯ No of shares subscribed
❯ Nature of shares
Step 6: Certificate of Incorporation
After filing the documents mentioned above and doing payment of necessary fees, the certificate of company incorporation is to be issued by the Registrar of Companies. After incorporation, the company becomes a legal person different from its members.
The process to register a private limited can seem to be a bit complex and time-consuming. This is why to help you do the job successfully Wankhade & Co. keeps an expert pool of professionals specialized in registration of company. We are committed to helping startups, proprietors and entrepreneurs to register a private limited company.
❯ Apply for company registration
❯ Service after company formation
Know more about our complete portfolio of Services after Company formation
ROC Compliances
As per The Companies Act, ROC compliances mainly include Annual filing. Apart from Annual filing, disclosure by directors, annual return draft, and updating the Statutory Register undergo ROC compliances. ROC compliances are mandatory. Any slack or negligence can lead to penalties, fines and other legal issues pertaining to the Company.
At Wankhade & Co. we have the team of experts having expertise and experience in Company Law Matters.
Corporate Law Advisory & Compliance
The Companies Act 2013 has offered a new era of corporate governance, transparency and investor activism. We have the expertise and in-depth knowledge of the entire subject. We brainstorm on company compliances so that our clients can save time, money and labour to invest in their core competencies.
