A pvt ltd company registration is the registration of a company by limited liability for its shareholders. It is the process of formally establishing a company with limited liability for its shareholders. That is one of the most popular business plans loved by the entrepreneurs as it provides the legal shield and a separate legal status to the owners. The ever-growing trend of online company registration in India has made the whole process hassle-free and user-friendly. Business persons now can register, fill the required paperwork, and submit the documents for approval online without any physical official visit. This blog will communicate you about private limited company registration, its process, necessary documents, and potential benefits of private limited company.
What is Private Limited Company Registration?
Registration of a Private Limited Company in India is the process to register a company which is legally recognized a company with a limited liability for its shareholders. This kind of company is registered under the Companies Act, 2013. To register, the company must have at least two directors and two shareholders, with a maximum of 200 shareholders for private ltd company registration in India. The directors must be issued a Director Identification Number (DIN) and Digital Signature Certificate (DSC), while the company must obtain a unique name through the Ministry of Corporate Affairs (MCA).
A Private Limited Company registration provides limited liability to directors and get easier access to funding, as well as enjoys a separate legal status, and it is a type of company that is most commonly in demand amongst small and medium businesses in India.
Top Benefits of Private Limited Company Registration in India
Here are the main benefits of a Private Limited Company in India.
Limited Liability: Owners are protected solely down to their share capital, they are not responsible for their personal assets in case of business failure.
Separate Legal Entity: A company is legal and a separate entity on its own while this is not the case for its owners. Therefore, the company can get into a contract or have the right to buy, and sell its property. Also, it has the right to sue and be sued.
Credibility and Trust: The pvt ltd company registration will in turn provide the company with the benefits of high credibility, which brings in customers, investors, and partners.
Access to Funding: The process of gathering funds with the help of venture capitalists, angel investors, or through equity is much more easy in a private limited company than it is in unregistered companies.
Tax Benefits: Besides the tax benefit that is available for the private ltd company registration in India in the form of business expense deductions, the overall tax liabilities also comes down through this process of registration of private limited company.
Perpetual Succession: The Company could be operational even after the investment alteration due to its long-lasting character that assures the long-term duties and obligations for a company. This statement means that if you need to change the ownership of the company, you can do it easily.
Ownership Transfer: Pvt ltd company registration is an easy way to share stocks among each members. Each member has a vote, and his or her opinion will affect the decision making in the company.
Process Of Online Company Registration In India
You can register a Private Limited Company online in India by following the process mentioned below:
Digital Signature Certificate (DSC): All the directors of the company have to get the DSC for signing electronic documents for registration.
Director Identification Number (DIN): You need to obtain Director Identification Number (DIN) by filling out the application for a DIN online for pvt ltd company registration online
Name Approval: Pick a name for the company which is unique and then proceed further with applying for approval of name on the MCA portal. The naming should be in accordance with the guidelines issued by the government.
Incorporation Application (SPICe Form): It is the first step in the process of online company registration. You need to file the SPICe (Simplified Proforma for Incorporating a Company Electronically) form with the Registrar of Companies along with the details like, the company name, details of directors, and capital.
Documents Submission: Submit all the related documents, like The Memorandum of Association (MoA) and Articles of Association (AoA), copy of the pan card, address proof of the director, and company for online company registration in India.
Certificate of Incorporation: After submission of the details mentioned above, the RoC issues the Certificate of Incorporation, which confers the right of the company to be a legal entity.
You may contact Lawgical India, one of the most prominent company registration service providers in India for your registration of private limited company in India.
Documents Required for Pvt Ltd Company Registration
The following documents are needed for the registration of a Private Limited Company in India:
Identity Proof: Any one of the documents, like Aadhar card, passport, voter ID, or driving license of the directors.
Address Proof: Utility bills, like water or electricity bill or rent agreement of the registered office of the company.
Photographs: You must have Passport-sized photos of all the directors for private limited company registration.
PAN Card: A copy of PAN card of all directors.
Incorporation Documents: Signed Memorandum of Association (MoA) and Articles of Association (AoA) of the company.
Proof of Company Name: Company name reservation certificate, Digital Signature Certificate (DSC) of the directors.
Conclusion: Pvt ltd company registration is a very important step for doing any business. This is critical for company growth as well as legal protection. Through the registration process of company, a corporate framework is formed, which provides limited liability to the shareholders and thus personal assets are protected from business risks. Private limited company registration will in turn increase your business profile and therefore more clients, consumers, and potential investors will have trust in you. Also, it creates many chances for companies to get funding because investors are more interested in companies that are well-structured with a clear legal framework.
