Private Limited Company Registration

Starting a business is the most challenging decision, but it gives you the maximum fulfilment of your dreams and desires. Your decision to begin your entrepreneurial journey starts with selecting the proper business structure. Anyone can choose a private limited company to build a scalable business. It's the most famous legal structure for the industry with multiple benefits such as limited liability, separate legal entity, ease in share transfer etc.

A private limited company is governed by MCA (Ministry of corporate affairs) under the Companies Act, 2013. A private limited company can be registered with at least two directors and two shareholders, where shareholders and directors can be the same person. The maximum number of directors can be 15, and the maximum number of members can be 200.

The shares division depends on the percentage of the capital invested in a company. The profit is also divided as per the shareholding of the shareholders.

Key Highlights of Private Limited Company

• Limited liability shields the shareholders from personal liability and protects them from other risks and losses.
• Attracts more vendors as well as employees
• Procures good investment from reliable investors.
• Increases the potential to grow and expand

The eligibility criteria for Private company Registrations calls for a need to look at the following factors, which says-

• The company can be incorporated with at least two directors and 15 directors.
• The number of members cannot be more than 200
• For foreign shareholders or directors, at least one director should be a citizen of India.
• The minimum share capital required to form a Private Limited Company is Rs1 lakh. However, there is no minimum cap on paid-up share capital.

When setting up a business, you should choose a business structure that matches your needs. And somehow you get to establish the Private Limited Company Registration. And with choosing the right structure, bring with it the prospect of growth with itself.

The benefits of pvt ltd company registration are as follows- 

• Limited Liability Protection

In limited liability protection, the company is responsible for its debts & liabilities, instead of shareholders’ assets. The former is protected in case of any financial roadblocks. 

• Separate legal entity

Another advantage of Private Company Registration is having a separate Legal Entity. This justifies how a company owns a separate identity, independent from the shareholders or directors. As a result, a company can form contracts, own assets and incur liability in their name. Having a separate legal identity gives you credibility and encourages you to improve the company’s reputation, making it an abode for investors, and encouraging tie-up business partnerships. 

• Tax Benefits

Being a private limited company has various perks, and tax benefits are one of them. While being a recipient of this, you become eligible for deductions, exemptions and other incentives. Where, on top of this, the tax rates offered to them are slightly lower than the legal structures.

Other Benefits of a Private Limited Company

• Shields personal assets from the business liability limit liabilities of Directors.
• The Private Limited Company (Pvt. Ltd) continues to exist even after the death of the Shareholders
• Open doors to raise capital from a venture capitalist, angel investor, financial institutions etc.
• Creates brand value as a private limited structure is more transparent compared to other business structures.
• Ownership gets transferred by just transferring shares.
• A Private Limited Company is a unique identity and can own/acquire and alienate property in its name. Property owned could be anything like copyrights, patents, machinery, building, intangible assets, land, residential property, factory etc.

Funding or Borrowing Capital

It’s easy for pvt ltd company registration to get funding or borrow capital from angel investors/venture capitalists/banks/ financial Institutes in comparison to other company types.

Liabilities of a Private Limited Company

• A private limited company must hold a board meeting annually
• File annual returns with MCA (Ministry of Corporate Affairs)
• Annual account audit by a CA is mandatory
• The private limited company requires filing their annual return with the Income Tax Department

The major documents involved for the Private company incorporation are the following, as mentioned below- 

• Identity proof of all Directors (Aadhar card, Driving License, PAN card, Passport)
• Address Proof all directors (Voter ID card, Passport)
• Address proof of company registered office (Rent agreement, Possession letter etc.)
• Electricity Bill of the registered office building
• Bank statement/ passbook of the directors
• Trademark registration Certificate (if any)
• Key Highlights of Private Limited Company -
• Limited Liability – The limited liability shields the shareholders from personal liability and protects them from other risks and losses.
• Attracts more vendors as well as employees
• Procures good investment from reliable investors.
• Increases the potential to grow and expand

Starting a private limited company can be an exciting and rewarding venture. However, it is essential to follow the proper procedures to ensure that your company is legally registered and compliant with the law.

Step 1:- Connect with Corpseed

Firstly, contact Corpseed as your one-stop solution provider. 

Step 2:- Assigned Dedicated Professional

Secondly, Corpseed will align a dedicated professional to help you with the Private limited company registration. 

Step 3:- Obtain DSC (Digital Signature Certificate)

Our experts will direct you in processing a Digital signature of the designated partners before starting the private limited company registration. The DSC is necessary as all the documents before submission are required to be digitally signed.

Step 4:- Name Approval and its Reservation

• The private limited company name approval is essential in establishing a company.
• RUN (Reserve Unique Name) form is filled for reserving the name given by Private Limited Company.
• Our experts ensure as according to rule; The name provided must be as per rule 8 of the Company Registration Act, 2013

Step 5:- Preparation of forms INC 33 and INC 34

• With our guided experts, we help you draft MOA and AOA. These are prepared under INC 33 and INC 34, respectively.
• If required, we can file for ESI, EPF, and GST simultaneously under the form names AGILE. 
• DIN can also be applied in SPICe form for upto 3 directors

Step 6:- Incorporation of private limited

• For the Incorporation of a private limited company, the incorporation forms (INC 33, INC 32, AGILE) will be uploaded by us with SPICe form INC 32. This duty is undertaken by Corpseed to be filled with the Registrar of Companies of the respective state in which the company's registered office is located.

Step 7:- Approval of the documents

• Once the SPICe form INC– 32 is approved, we will notify you regarding the Company Identification Number (CIN) along with the PAN and TAN of the company. 

Therefore, these steps will be followed & help you with the Private Limited Company Registration.

At Corpseed, we understand the immense value of a Private Limited Company and its tremendous impact on your business's success. With our team of highly experienced professionals, we are committed to helping you unlock new levels of achievement and propel your business forward. By partnering with us, you gain access to industry experts and knowledge to ensure a seamless and efficient registration system.