Process Of Private Limited Company Registration Online In India

What is a Private Limited Company (Pvt Ltd)?

A Pvt Ltd Company is a business substance held by little gathering. It is enlisted for pre-characterized protests and possessed by a group of individuals called investors. New companies and organizations with higher development desire prominently pick Private companies as reasonable business structures.

The business element helps perceived as a Company through its enrollment under the Companies Act of 2013 in India. The administering body is the Ministry of Corporate Affairs, commonly known as MCA. The meaning of Private Limited Company under the Act is given here to figure out its rudiments.

What are the Characteristics of a Private Limited Company?

Some of the characteristics of Pvt Ltd Company are as follows:

• Members- To begin an organization, a base number of 2 members are required and a most extreme number of 200 members according to the Companies Act, 2013.
• Limited Liability — In a Pvt Ltd Company liability of its shareholders or members is limited this means if the company incurred any loss under any situation then the shareholders are liable to sell their own assets to recover losses.
• Perpetual succession — The organization continues to exist according to regulation even on account of death, indebtedness, and the liquidation of any of its individuals. This prompts the never-ending progression of the organization. The existence of an organization continues to exist for eternity.
• Index of Members — Pvt Ltd company has an advantage over other companies in Pvt ltd company there is no need to keep an index of members.
• No of Directors — Pvt Ltd company Needs to have 2 Directors to start its operations.
• Paid Up Capital — Pvt Ltd Company requires a minimum capital of 1 lakh to start the operations
• Prospectus — Prospectus is a nitty gritty proclamation of the organization’s undertakings that is given by an organization to its public. Be that as it may, on account of a Pvt Ltd Company, there is no such need to give a plan since this public isn’t welcome to buy in for the Shares of the organization.
• Minimum Subscription — It is the sum gotten by the organization which is 90% of the offers given inside a specific timeframe. On the off chance that the organization can’t get 90% of the sum then they can’t initiate further business. On account of a confidential restricted organization, offers can be designated to people in general without getting the base membership.
• Name — In Private Limited Company Registration In India it is mandatory to use Privately Limited in its name.

What are the Types of Private Companies in India?

There is Multiple Pvt Company that is classified on the basis of their capital and Liabilities some of them are:

• Based on Capital — A Private Company can be enrolled regardless of the offer of capital. The kind of organization in light of capital is given in the capital condition of the MoA of the organization.
• Based on Liabilities — The individuals’ Liability can be restricted or limitless. Ordinarily, organizations are enrolled with Limited Liability in India. If there should arise an occurrence of organizations with shareholding, individuals’ obligation is restricted to neglected capital on bought-in shares. In the event of organizations without shareholding, the concurred measure of risk in the type of capital is given in the MoA of the organization.
• One Person Company — One Person Company, prominently known as OPC is a kind of Private Limited Company. It is an organization enlisted with just a single investor. This construction advantages such advertisers, who would rather not share the ownership rights.

What are the Documents Required for Private Limited Company Registration Online In India?

Some Documents which are required for Pvt Ltd Company Registration Online In India are:

• Copy of PAN Card of directors
• Passport-size photograph of directors
• Copy of Aadhaar Card/ Voter identity card 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)

What are the Basic requirements of Private Limited Company Registration In India?

The basic requirements for Private Limited Company Registration in India are as follows:

1. Minimum 2 Directors: At least two persons are required to act as directors of the company, and one of them should be a resident of India.
2. Minimum 2 Shareholders: A private limited company must have a minimum of two shareholders, and there is no limit on the maximum number of shareholders.
3. Registered Office: The company must have a registered office in India that can receive communication and notices from the government and other stakeholders.
4. Minimum Paid-up Capital: There is no minimum paid-up capital requirement for private limited companies in India. A company can be incorporated with a nominal capital and increase it later as required.
5. Unique Name: The company name should be unique, and it should not be similar to any other registered company or trademark.
6. Digital Signature Certificate (DSC): DSC is required for all directors and shareholders for online submission of documents.
7. Director Identification Number (DIN): All directors must obtain a DIN from the Ministry of Corporate Affairs.
8. PAN and TAN: The company must obtain Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department.
9. Memorandum of Association (MOA) and Articles of Association (AOA): MOA and AOA are the two essential documents that govern the company’s functioning, and they must be drafted and filed with the Registrar of Companies.
10. Filing of Forms: The company must file various forms with the Registrar of Companies, such as SPICe, INC-22, DIR-3, and others, within the specified timeframes.

What are the Advantages of Private Limited Company Registration Online in India?

Some of the Advantages Of Pvt Ltd Company Registration Online In India are:

• Ownership
• Minimum No of Shareholders
• Legal Formalities
• Disclosing Information
• Management and Decision Making
• Minimum Share Capital
• Long Term Planning
• Focus on Management

What is the Process of Pvt Ltd Company Registration Online In India?

Process of Private Limited Company Registration Online in India are:

• Apply for DSC (Digital Signature Certificate) and DIN (Director Identification Number)
• Apply for the name availability
• File the MOA and AOA to register the private limited company
• Apply for the PAN and TAN of the company
• A certificate of incorporation will be issued by RoC with PAN and TAN
• Open a current bank account under the company name

Read our other Blog on How to Form a Pvt Ltd Company in India to Know more