Private limited company registration in India is one of the most opted out business structures by Startups and new ventures. One of the most centralized and organized form of company registration in India which borrows its procedure from companies act, 2013 viz. is directly governed by Ministry of corporate affairs (MCA).
What is Private Limited Company registration?
Private limited company is a form of company structure which offers separation of ownership from the management. Additionally private limited company also offers the benefit of limited liability on the promoter’s part. Section 2(68) of the companies act, 2013 defined various aspects & pre-requisites for private limited company, such as:
- Minimum paid up share capital of 1 Lakh as prescribed under the Companies act, 2013.
- Restricts the right to transfer it shares under its articles.
- Limits the no. of members to 200 (except in an OPC).
Why Startups prefer to register as private limited company in India?
- Stability and growth opportunities being offered by the private limited company structure.
- Minimum: 2 & Maximum: 200 members are needed to register a private limited company in India according to companies act, 2013.
- Liability of each member/partner is limited i.e. the personal assets of the shareholders are not at risk in a private limited company registration.
- Benefit of Perpetual succession; which signifies that even in the case of death or insolvency or bankruptcy, the company will keep on functioning in the eyes of law.
- Minimum of 2 directors are required to start a private limited company.
- INR 1 lakh is the minimum capital required to start a private limited company.
- It is mandatory for every private limited enterprise to attach suffix ‘private limited company’ Or Pvt. ltd. Co.’
FREQUENTLY ASKED QUESTIONS (FAQ)
(Q) How can one register a Private Limited Company in India?
To easily register your company in the most optimal and secure way just follow the steps:
- Name for the company: Finalizing a name for your company which resembles the nature of your work, easy to remember & different from your competitors in the market. You will have to submit a list of names with the registrar in the priority sequence and the first available name will be allotted to you.
- Form of business structure: In our case, we need to get our Startup India registration in the private limited company. Private limited company registration forms a different business character as compared to other forms in terms of ownership rights, risk & reward and the liability of partners.
- Digital signature certificate (DSC): Getting digital signature certificate of your private limited company is mandatory for Startup India registration as it is the most authenticated way of document verification.
- Directors identification number (DIN): Directors identification number is required for each and every existing or potential director who is going to be a part of the company in near future.
- Memorandum of association/Articles of association defines the rules & regulations which governs the overall functioning of the private limited company. All the broad decision, vision & mission statements draw its powers from AOA & MOA.
- Get Incorporation certificate of the company: Once documents are submitted & verified within the stipulated time period a pre-screening of the documents is being done before releasing company incorporation certificate.
(Q) Which documents are required for company registration?
- Copy of PAN details of directors
- Passport size photograph of directors
- Aadhaar Card/ Voter identity of directors
- Copy of Rent agreement (If rented property)
- Electricity/ Water bill (Business Place)
- Copy of Property papers(If owned property)
- Landlord NOC (Format will be provided)
(Q) How much Capital is needed for a Private Limited Company Registration?
A minimum of 1 Lakh rupees is needed to start a private limited company in India.
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