When it comes to business organizations, the Private Limited Company is one of the most popular types. Businessmen love private limited companies. There are numerous benefits of Private companies from a legal perspective. Even though it is the most challenging type of company to form, everyone prefers the same. There are a ton of benefits of creating and operating a Private Limited Company.
Registration of Pvt Ltd Company is a very tedious task. That’s why only the serious business owners opt for Private Company. LLP is an easy option for startups because a private company requires strict compliance with the laws. If you are looking to register a Private Limited company, then you should ask for professional help. Also, it is better to learn more about the same before you decide to register the company.
Private limited company registration in Mumbai -Benefits, Requirements, and Registration Procedure
What is a Private Limited Company?
A Privately held registered business organization is known as the Private Limited company. The Private company is a legal entity and can act as an individual. The Companies Act 2013 is the governing act for Private companies. Any company which is registered under the rules and regulations of the Companies Act, 2013, is known as the Private limited company. One of the best features of Private companies is limited liability. The liability of shareholders is limited to their capital contribution. Nothing more.
Benefits of Private Limited Company
There are numerous benefits of Private companies. That’s why the people choose Pvt ltd company over LLP or OPC. When it comes to the popularity of business organizations, private companies are the most popular. Even though the registration process is tedious, the benefits of the same override every flaw. Here are a few benefits of a Private Limited Company.
#1 – Legal Entity
According to the Companies Act, 2013, a Private Limited Company is a separate legal entity. The company is a separate legal entity in the eyes of the law. the company has the signature, name, and can act as a legal person. It can own property, sell property, and perform business operations.
#2 – Perpetual Existence
This is one of the best features of Pvt Ltd company. The perpetual existence means the company never dies. It exists until the liquidation process is initiated. Death of the shareholders does not affect the presence of the business. It keeps on going even without the founders and shareholders. As the shares of the shareholders are freely transferable upon death, there is no void of the shareholders or even the management.
#3 – Limited Liability
Many businessmen prefer private companies because of limited liability. The shareholders are liable for capital contributions. Unlike the partnership firm or sole proprietorship, the personal property of shareholders is safe. In case of any financial problems, shareholders lose capital contributions. The personal property of the shareholders is not attached to recover the dues/liabilities.
#4 – Number of Stakeholders
The Private company consists of a minimum of two members. The maximum limit for stakeholders is 200. The Private limited company provides flexibility
Documents for Private Limited Company Registration
The registration of private companies is a very tedious process. There is a lot of paperwork involved in the registration process. Here is the list of all of the documents that you need for the registration of a private limited company.
- ID Proof of Promoters and the Stakeholders
- Address Proof of Promoters and Stakeholders
- Contact Details of Directors and Stakeholders
- Share Capital and Holding Ratio
- Passport Size Photo of Directors
- Rent Agreement or Sale Deed of Office Premises
- Memorandum of Association and Articles of Association
- PAN Card of the Company
- Current Account Details for Business
- Nationality Proof in Case the Directors are Foreign Nationals
Registration Procedure for Private Limited Company
The Registration procedure for Private companies is very tedious. All you need to do is to collect all of the documents and then start the registration. The entire registration process is online. You have to keep the digital records of all of the documents. If you have no access to the papers, then you first have to get your hands on the same. The most challenging part of collecting the documents in MoA and AoA. You have to draft a memorandum of association and Articles of Association with Legal aspects into consideration. The entire process needs legal supervision from either an Advocate or a CA. If you are looking to hire professional services for PVT LTD Registration, then you should hire professionals from Efiling.co.in.So, if you have all the documents, then the Efiling.co.in experts will help you register the company in 15 days. Here’s how the professionals register a Private Company with the Registrar of Companies.
#1 – Apply for DSC – The DSC or Digital Signature Certificate is the first step of company registration. It is essential for digitally signing the documents.
#2 – Apply for DIN – The DIN or the Director Identification Number is the second step of company registration. It is the unique identification number for the Directors of the company.
#3 – Name Reservation and Approval – The company should have a unique name. The name reservation and approval is the third step for company registration.
#4 – Memorandum and Articles of Association – After the first three steps, you need to upload MoA and AoA with RoC. After uploading, the incorporation is in the finishing stage.
#5 – Incorporation – After you complete every step, you get the Incorporation certification from the Registrar of Companies. The Incorporation certificate is the final step, and it allows you to start operating on the name of the company.
The entire process takes 15 days if you have all of the documents ready. The steps are complex, and any mistake will cause delays. That’s why the professional CA’s will handle all the technical steps and will get your incorporation certificate within a few days.
Frequently Asked Questions on Private Limited Company Registration:FAQs
#Q1. – How can I register a private limited company?
The Registrar of Companies in India has a separate online portal for Private Limited Companies. The directors have to follow the steps prescribed by RoC to complete a private company.
#Q2. – How much does it cost to register a Pvt Ltd Company in India?
The registration of a Pvt Ltd company is a little bit costly. The Incorporation fees are approximately Rs.15,000/-. After that, the compliance fees may cost the directors up to Rs.25,000 to 50,000 more than the incorporation fees.
#Q3. – Can one person start a private limited company?
According to the Companies Act,2013, one person can start a Pvt Ltd company. The Companies Act 2013 introduces the concept of One Person Company.
#Q4. – How many directors are required for a private limited company?
According to Section 149 (1) of Companies Act, 2013, the Pvt Ltd company should have a minimum of two directors and a maximum of 200 directors. Also, there is the exception of One Person Company, where only one director can form the company.
#Q5. – What is the minimum capital required for a private limited company?
The minimum capital requirement for a Pvt Ltd company is Rs.1,00,000/-. There is no maximum capital limit for the company.
Professional Private Limited Company Registration from Efiling.co.in
When you have a more significant aim of running the business, you should not tangle yourself with tedious processes. The Pvt Ltd Registration should be completed with professional help. So, having professional help from Efiling.co.in is advisable. The experienced Chartered Accountants and Advocates will help you complete the registration within 15 days. Why waste your time with everything when you can hire professional help?