Register Private Limited Company in India

Register Private Limited Company in India

How to Register Private Limited Company in India

It is essential to register a company when you are doing a business. When you think about a business, the ultimate thing is a company and money because you can obtain licenses, current accounts, brands, etc., only if you register your business.

Once you have decided to start a business, you must first remember what type of company you should register. There are different types of companies that you can register based on the size of the business and the investment. Here is the list of companies you can register for your business.

1. Proprietorship

2. Partnership firm

3. Private Limited Company

4. Public Limited Company

5. Limited Liability Partnership Company (LLP)

6. One Person Company (OPC)

This guide will explain how to register a Private Limited Company in India, the benefits, and the registration process.

What is Private Limited Company?

Private Limited company is a popular entity that has a lot of benefits for the business owners. You might think why Private Limited Companies have more benefits than proprietorship firms and partnership firms. Let us see the top five benefits of a Private Limited Company and why you should register your company under this category.

Limited Liability: Limited Liability protects your personal assets when your company meets a huge loss from the client side. For example, your company made a loss to a client and the client files a case to recover the loss. Suppose your company is a proprietorship, the loss will be recovered from your firm and from your personal assets if the loss amount exceeded the company’s assets. But in a Private Limited company, the loss will be recovered only from the company’s assets, not from the owner’s personal assets.

Trust: The trust will be increased when you have a Private Limited Company. The client will start to believe your company hence you can operate a smooth business.

Bank Loans: Private Limited companies can get bank loans easily and quickly when compared to proprietorship companies.

Credibility: You can increase credibility. For example, if you are applying for any tender or proposal, there are many chances of getting it approved.

Attracts Investors: It is easy to approach investors if you have a Private Limited Company. Investors mainly look into the type of business and the concept of the business. You can find investors at angel funding.

Who can Register Private Limited Company?

You can register your business under Private Limited Company:

If your business involves high risk.

If you want to attract investors with new concepts.

If you have a goal and long time vision to achieve big in your business.

What are the Minimum Requirements to Register a Private Limited Company?

To start a Private Limited company, you need the following:

  • Two shareholders
  • One Lakh share capital
  • Office space

These are the minimum requirements to register a Private Limited Company.

Document Required to register a Private Limited Company

1. ID Proof of both the Directors

2. Address Proof of both the directors

3. PAN Card of both the Directors

4. Passport Size Photo of both the Directors

5. Rental deed for the company

6. EB Card

These are the documents required to register a Private Limited Company.

Registration Procedure for a Private Limited Company

The Private Limited Company can be registered with the Registrar of Companies (ROC). You can register online at mca.gov.in

Register Private Limited Company in India
Register Private Limited Company in India

There are 6 steps in the registration process.

Step 1: Name Approval

You have to apply for name approval. The ROC will approve the name based on certain norms. The name is divided into three parts. 1) Name of your business 2) type of your business 3) the entity.

For example, Josmellon Technologies Pvt Ltd. Whereas Josmellon is the business name, Technology is the type of business (a term that describes your business) and the Pvt Ltd is the entity name.

Step 2: Digital Signature

You have to apply for the digital signature. This provides the authenticity or identity of the document which plays a bigger role in any kind of business.

Step 3: DIN Number

DIN stands for Director Identification Number. All directors will have a unique DIN number. You need to apply for the DIN number at this stage.

Step 4: MOA & AOA

MOA stands for Memeramdum for Association and AOA stands for Article of Association. These are the important corporate documents. It defines the company’s relationship with the shareholders, items and conditions etc. You need to apply for MOA & AOA at this stage.

Step 5: Certificate of Incorporation

Once the ROC has approved MOA & AOA application, you will get the certificate of incorporation. It is an important document that shows that you have formed a Private Limited Company.

Step 6: Taxation

Apply for Taxation is the last step of the registration process. The company needs to pay 30% of tax from your profit to the government.

Summary

In conclusion, a Private Limited Company has many benefits than the other type of companies. This guide might help you start a Private Limited Company with ease. Let me hear your opinion in the comment section, I will be glad to answer your queries.

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