Pvt Ltd Company Registration is one of the most common forms of company registrations in India because of the various advantages and exemptions. These types of companies are privately owned business entities and require a minimum of two shareholders and two directors to be functional. The Ministry of Corporate Affairs governs these companies and requires them to determine and state their objectives before registration clearly. The following are the specific characteristics of a business that makes them eligible for Private Limited Company Registration in India.
- Members- 2 to 200 shareholders, and two to fifteen directors.
- Limited liability of shareholders- allow them to sell their shares independently. It also keeps their personal assets safe from risks.
- Life of its own- As a separate entity in the eyes of the law, the company remains at all conditions till it is dissolved following procedures.
- No Minimum Capital- The amount is decided by the Ministry of Corporate Affairs and can change with time.
- 90% Of Share Value- The business before Pvt Ltd Company Registration should receive a minimum of 90% of the total value of its shares.
Simple Steps For Private Limited Company Registration In India:
There are two ways to go about the process of a Private Ltd. company Registration in India.
The first way:
Step 1- Application for the Digital Signature Certificate (DSC)
Step 2- Submit the application for the Digital Identification Number (DIN)
Step 3- Register a few preferred names for name availability
Step 4- File the e-versions of the Memorandum of Association (MoA) and Articles of Association (AOA)
Step 5- Apply to receive the Permanent Account Number or, in other words, the PAN number of the company along with the TAN number, which refers to the Tax Deduction Account Number.
Step 6- Receive the Certificate of Incorporation from the Registrar of Companies (RoC).
While this completes the registration process, another additional step requires the company to open a current bank account for the business.
The second way:
You can go through the above steps or register with the help of Taxwink and ease up the entire process.
What Are The Documents Needed For Pvt Ltd Company Registration?
Although registering a Private Limited Company is easier than other types of companies, it still requires a lot of documents for the process. So instead of losing track later, it is better to get them ready and sorted before going for registration. Here is the checklist of documents you need for the process.
- PAN Cards and Passports of all the members of the company for identification proofs.
- Aadhaar, Ration, Voter ID, or even the Driver’s license can be used for address proof of the members.
- Electricity bill or phone bill as the address proof of the registered office.
- Rent agreement of the property on which the office is being run if rented.
- No Objection Certificate from the property owner in case the property is rented.
- If the office property is bought, then the sale agreement of the same is also required for the registration.
Considering some successful examples like Flipkart and Ola in the realm, and the comparative ease of the process, especially with the help of Taxwink; Private Limited Company Registration in India has become a preference for entrepreneurs today.
