What is a Private Limited company?

A Private Limited Company is a privately held/owned business entity used in many jurisdictions in contrast to "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.

What are the procedures to register Private Limited Company in India?

Apply Digital Signature of Directors Allotment of Director Identification Number (DIN) for all directors Reservation of Name of Company Preparation of Documents Filing of Documents with RoC Issuance of Certificate of Incorporation Filing of declaration of Commencement of business

What are the benefits of Private Limited Company in India?

Separate Legal Entity: Companies are having a separate legal entity from its shareholders and directors. Therefore, every company have their independent PAN & GSTIN in their name. So, a private limited company can hold asset and liability in its name. Limited Liability of Shareholders: In case of any other form of business, such as Partnership firm, proprietor ship firm, liability of partners/proprietor is unlimited, i.e., their personal asset can be used for payment of the business liability, if required. However, in the case of a company, liability of a shareholder is limited to its share capital only. Perpetual Existence: Proprietorship concern or a partnership concern shall stand dissolved in case of death of proprietor or any of the partner. However, same is not the case in case of company. As company is an artificial person, it never dies. Its only get dissolved or wind up by way of name striking off by RoC from register. To sue or to be sued: As company is an artificial person, therefore, all proceedings are carried out in name of company only. A company sue any other person in its name or can get sued Easy transferability of shares: Companies involves easy transferability of shares. If any shareholder wants to transfer his shares to any other person then he may do so without prior approval of any other shareholder or company. Therefore, it ensures free transfer of shares.

Documents required for Private Limited Company Registration?

Documents of Company: Proof of Address: Copy of utility bills such as electricity, not earlier than 2 months. In the case of rented premises, Copy of rent agreement along with No Objection Certificate from the landlord. Documents of Directors: Digital Signature: Passport size photograph, copy of PAN Card and Aadhar Card, email id and Phone number. Identity proof: Voter’s ID Card, Passport, Driving Licence, PAN (Anyone) Address Proof : Copy of Bank statement, Electricity Bill, Telephone bills, not earlier than 2 months. In case of rented premises, Copy of rent agreement along with No Objection Certificate from the landlord

Salient features of Private Limited Companies in India?

Separate Legal entity , i.e., identity of company is independent of its shareholders or directors. Company has its own assets and liability in its own name. Perpetual existence , i.e., existence of company doesn’t get affected by new shareholder or death of any existing shareholder or director. Liability of shareholders of limited to their subscribed shares Transferability of shares is an easy process as compared to any other form of business. Improvise creditability as financial statements of company are liability to audit by a Chartered Accountant and it increases authenticity and reliability of books of accounts.

How much time it take to register Private Limited Companies in India?

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

How can VJM & Associates LLP help you in starting Private Limited Companies in India?

We can reduce your burden of the cumbersome process of Private Limited Company incorporation. We can assist you in following ways: Obtaining Digital Signature of all directors. Allotment of Director Identification Number of all directors. Get desired name of the company reserved with RoC. However, approval of name shall be subject to the fact that name should be resemble to any existing company and name must not contain any word prohibited by Companies Act, 2013. Preparation of memorandum of Association, Article of Association and other documents required for incorporation. Filing of registration related documents with RoC Handling all the issues raised by RoC, if any. Obtain certificate of Incorporation. Filing declaration of commencement of business with RoC.

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.