What do you mean by Company Registration? What is the procedure to register a company in India?
In comparison to others companies, a private limited company is the distinguished form of business entity in India. Across1.9 Million companies registered in India till date, 95% of which are private limited companies.
There are many advantages of private limited companies such as limited liability of the members, convenience in the formation and disclosure of company, detachment of ownership and control of management etc.
Registration of Private limited Company is mostly done by startups and growing businesses. Their business is established with a separate legal entity and it becomes easy to capitalize their business through raising funds, and a capability to transfer equity to potential and healthy investors.
The Companies Act 2013 governs and the Ministry of Corporate Affairs regulates such private limited companies.
What are the advantages of a Private Limited Company Registration.
- Personal assets are secured -The personal assets of the members are secured and will not be seizedin case of loss incurred by the company, only the shares subscribed or the investments made in the private limited company are lost.
- Separate legal Entity -The concept of separate legal entity is followed in private limited companies. Such companies are called artificial person because of separate legal entity concept. It has the right to sue and be sued by others in its capacity.
- Brand value/ Image -The Ministry of Corporate Affairs website provides the details regarding the registration of Private limited companies, due to which most of the persons such as vendors, suppliers, and even the public rely their trust on such private limited companies over proprietorship or partnership firms.
- Ease of diversification of Business -ï¿½In such type of corporate structure, it becomes convenient for startups and growing businesses to encourageangel investors, venture capitalists eligible to make investment in their companies at the initial stage etc.
- Perpetual Succession -Such private limited companies possess the feature of Perpetual Succession as even in the case of death of any of its members or directors, such companies continue to exist.
- Availability of Credit - Raising funds fromfinancial and banking institutions becomes easy due to its organized structure and compliances regulations.
- Provision of ownership transfer -Transferringexisting shareholdings and directorship is easy for private limited companies,moreover it is also convenient for such companies to issue fresh shares and transfer equity to new members or the public.
Difference between Limited Liability Partnership, One Person Company and Private Limited Company.
|Particulars||Limited Liability Partnership||One Person Company||Private limited Company|
|Suitability||Professional service firms||Small business and owned by a single promoter||Early-stage entrepreneurs /Growing businesses|
|Employee stock option||No||No||Yes|
|Liability of members||Limited||Limited||Limited|
|Dividend Tax to be paid||No||No||Yes
What are the minimum requirements for company Registration?
- At least 2 directors and At max 15 directors are required. (One Indian resident director is compulsory).
- At least 2 shareholders and at max 200 shareholders can be in a company.
- Nominimumcriteria of share capital are there.
- Requirement of Director Identification Number for all the Directors
- Requirement of Digital Signature Certificate for one of the Directors
Documents needed for Company registration
Documents required from proposed Directors/ Members
In case of Indian national Director or Member (Self-attested)
- Identity proof such as Passport/ Driving License/ Voter Identity card/ AADHAAR Card
- Applicant Permanent Account Number
- Bank statement Copy
- Email address and contact number.
In case the applicant is a foreign national (Self-attested)
- Apostille as well as Notarized Passport
- Apostille as well as Notarized proof of Resident.
- Email address and contact number
- In case the applicant is not of the native country then Attested copy of VISA is required.
- In case the applicant is of India then Attested copy of Resident Permit certificate is required.
For Registered office
- Rent agreement on the name of the company in case the property is on rent.
- Utility bills such as telephone bills, electricity bills, which must not older than 90 days
What is the procedure to register a company in India
Selection of a Company name
Digital Signature Certificate (DSC)
Director Identification Number (DIN)
Approval of Company Name
Along with Memorandum of Association (MOA) & Article of Association (AOA), Submission of Final Incorporation form (SPICe)
Opening of Bank Account
Step 1: Selection of a Company Name
Availability of the company legal name can be checked on the website of Ministry of Corporate Affairs (MCA) among which suitable company name can be selected.
Step 2: Obtaining Digital Signature Certificate (DSC)
Digital Signature is used to file application of Company Registration through online mode, so every proposed directors of the company must have Digital Signature Certificates. Additions to this, such signatures are used for signing of forms of ROC compliances, E-Income Tax returns at the future date.
Step 3: Obtaining Director Identification Number (DIN)
DIN is a unique Director Identification Number which is allotted to every person who intends to become a director in a company. Application for the allotment of DIN is made in the SPICe form at the time of incorporation.
Step 4: Approval of Company Name
For the name approval step, an application is filed in the prescribed Form RUN (Reserve Unique Name) with the Ministry of Corporate Affairs
Step 5: Along with Memorandum of Association (MOA) & Article of Association (AOA), Submission of Final Incorporation form (SPICe)
To get Certificate of registration along with Permanent Account Number (PAN) & Tax Deduction Account Number (TAN) once the company name is approved,a person is required to submit SPICe form to Ministry of Corporate Affairs(MCA) and for this one must have KYC, and other prescribed documents of Directors& Shareholders.
Along with the SPICe form, a new form AGILE (INC-35) which has been introduced as per the recent amendment named is also required to be accompanied.
Registration under EPFO (Employees Provident Fund Organization), ESIC (Employee State Insurance Corporation) and Goods and Services Tax (GST) of the company would be required while submitting such forms.
Step 6: Opening Bank Account
To commence your business, one is required to open current account with the bank.
Do You Have Any Questions?
Registration of Indian Subsidiary does not require your presence as it is a 100% online process. For document signature, we will send our personnel to your home or office.
The internal constitution of the company is defined in Article of Association, and mission, vision, business objective of the company is defined under Memorandum of Association.
To get your company registered as well as registration under Goods and Service Tax (GST), you can use your residential premises address.
Hiring CA/CS is not required. We will offer you annual compliance package will offered to you through which you will get the right advice from our professionals.
Minimum 7-20 business days are required for the same.
Company name should be different and unique, and name should describe the objective of the companies per Companies Act, 2013.
ID proof (like Aadhar/ Indian Passport / Driving License/ ID issued by any government agency, Utility bills as address proof, a copy, Permanent Account Number Card (for Indian Nationals) and Passport (for foreign nationals) must be provided by all the proposed directors. No-objection Certificate is also required to be submitted by the owner to the registered office premises.
Certifying authority issues the Digital Signature Certificate which is used to sign the electronic documents. Every proposed director in a company must have a valid Director Identification Number.
A registration certificate remains valid throughout the life of business which is issued by the registrar of company.
Yes, moreover prior approval of the government or RBI is not required. However minimum 1 director must be an India Resident.
As such no minimum Paid-up Share capital or contribution is required for Private Limited Company Registration in India,
Registration of Private Limited Company can be done with family members and moreover shares can be transferred later if you want.
Until and unless the annual turnover of the company does not exceed 20 lakh rupees or 10 lakh rupees in case of the northeastern state, registration under GST is not compulsory.
Registration of both private limited company as well as startup India registration is possible. To register for startup,you just need to register with the startup India portal. No worries, we will assist you in the same.
Yes, but while doing multiple businesses, the details of all such businesses are required to be mentioned in Memorandum of Association (MOA) of the company while going for registration.
After company registration, one needs to file an application with the authority for trademark registration.
- Any individual or company is eligible to become a director in a company.
- An Individual must not be a minor. He must have reached the age of 18.
If there is no employment contract then you can become a director in a company. But usually, you should avoid this. As your Employer will not allow you to float a company with the employment.
Yes, in private limited company investments can be made by Venture capitalist firms or angel investors.
Following annual compliances are required to be fulfilled-
- Appointment of Auditor
- Proposing Annual General Meeting.
- Filing of Income Tax Return.
- Filing of Annual Return and financial statements such as Income Statement and Position Statement etc.
By filing the appropriate forms with the appropriate and prescribed government authority, conversion of Private limited Company into Limited Liability Partnership (LLP) One Person Company (OPC).
Liability of members of the company is limited only up to the contribution made by them. Personal or private assets of the members are secured and will not be seized in case of any unforeseen circumstances.
For Private Company Registration, Government charges fees of Rs. 3500approximate but you can hire CA/CS for getting your company registered. They will draft your MOA & AOA without any error and will provide right selection of company business activity in Spice form.
Yes, conversion of OPC into Private Limited Company is possible, the condition to be fulfilled is that you must have a paid-up capital above Rs. 50 lac or annual turnover is more Rs 2 Cr. It requires at least15 to 25 days in conversion.