Overview

As per definition, a Private Limited Company is a venture where the shares of the company are held by the shareholders (who are thereby the owners of the company) in proportion to the sum of their investment in the company. Private limited firms have gained prominence among Indians who are entrepreneurial because they offer an entrepreneur a safe & flexible lawful framework for their investments. For Private Limited Company Registration, there are a few basic requirements that must be fulfilled for the incorporation of the company:

• One person must be a residing Indian.


• The company should have at least two shareholders.


• A registered office must be there for the company.

Requirements

There are specific basic requirements for Private Limited Company Registration that must be fulfilled, which are stated in the Companies Act 2013:

• At least two directors are required, and a maximum of fifteen are allowed.


• One director should reside in India.


• Unique name of the company.


• Companies have no specified lower limit of capital as required. Nonetheless, there is a recommended authorized capital of as low as INR10,000.


• The firm's registered office could be located anywhere, including in a rented house.

Advantages

The benefits are as follows:

• Separate Legal Entity : The private limited company is described as a Legal entity/ Legal body as per the terms used by law and by fact. The shareholders and directors are not personally liable due to this separate and distinct legal identity.


• Limited Liability : The directors and shareholders are only liable to the extent of the share investment in the company and not beyond that; therefore, as their liabilities are confined in specific provisions, the liability is Limited.


• Uninterrupted Existence : Private limited companies can continue existing indefinitely because it is against the law to disband them upon the directors' and shareholder's demise. Here, for instance, if there is increased membership due to increased members, the company's continuity goes on uninterrupted. It is indifferent to such events.


• Fundraising Options : Private limited companies can raise funding through various options such as their shareholders, individual investors or angels, venture capital funds, private equities, foreign funds, NBFCs, banks, and other financial institutions. In particular, private companies have a perfect chance to find debt and equity funding providers.

The private limited company has become popular among Indian entrepreneurs as it provides entrepreneurs with a secure and flexible legal arrangement for their investments.

Documents required for Registration in India

Application for Private Limited Company Registration on the MCA Website needs certain paperwork. With this, the registrar goes through the application and all attendant documents with keen eyes to see if there are any omissions. The documents required for incorporating a Private Limited Company are as follows:

• Proposed directors' copy of PAN card and Aadhar card.


• For the said directors' address, proof may be in the form of an Aadhar card, utility bill, Voter's card, ration card, driver's license, etc., and passport.


• As the law requires, directors' ID proofs - driving licenses, electoral cards/voters' cards, and Aadhar Cards.


• Email addresses of proposed directors.


• Proposed Directors' passport-sized photographs.

Documents related to the company that are required for Private Limited Company Registration:

• Proof of Ownership for office premises (in case of rented property).


• Copy of the lease agreement in case the office space is on rent.


• NOC from the landlord is necessary in the case of rented premises.


• Include utility bills for the office space address proof.


• The company's email ID.


• Drafts of AOA and MOA of the Company.


• Three-year forecasting documents on projected income and expenditure, including prospective sources of income and the intended use of funds.

Registration Process

The procedure involved in a Private Limited Company Registration is as follows:

• Applying for a Digital Signature Certificate (DSC)

For Private Limited Company Registration, all prospective directors, shareholders, and signatories must have valid digital signature certificates.

• Obtaining Director Identification Number (DIN)

Once DSC is in place for proposed directors, they must file form DIR-3 to obtain their "director ID" or DIN. After approval from the RoC (Registrar of Companies), the DIN is granted.

• Company Name Search and Approval

For Company Name Search and approval, the SPICe+ Form is required to be submitted. In the next step, in separate forms, the PAN and TAN of the company has also to be submitted.

Stage 1: Choose a Company Name and Secure it.

• Go to the SPICe+ Form within the MCA services tab.


• Choose a company type, class, category, and sub-category.


• The registrar will settle for the second-best choice after two alternative names.


• Please fill out the attached form along with attachments and remittance.

Stage 2: Duly Fill Out SPICe+ Form

• After the company name reservation, another application needs to be filed with the SPICe+ Form in Part B.


• Describe the planned directors, shareholders, registered office, and resources of the corporation.


• At this time, you may request a PAN/TAN registration.


• Before scrutinizing the information, carry out a pre-scrutiny check.


• Submit the form after a scrutiny check.


• Stamp and attached Form for DSC of Directors/Authorized signatories-part B with relevant linked forms constituting AGILE PRO, SPICe+ MOA, SPICe+ AOA, URC-1, INC-9.


• SPICe+ AOA/ MOA forms should be in accordance with Section 1 Schedule of the Companies Act 2013.


• Upload all the forms to the MCA portal.

Registrar Inspection

• The registrar of companies will examine all the forms and documents which will be presented.


• The applicant will have a chance to correct any errors and re-submit the forms if there are any.

Certificate of Incorporation

• After all the formalities and requirements are fulfilled, the certificate of incorporation will be issued by the RoC, along with the generation of a Corporate Identification number.

Why Adviso?

The process of registering a private company involves a wide range of requirements, document preparation, and pre-and post-compliance obligations. It is important to comply with the specific terms of the Company's Articles of Incorporation (MCA). The incorporation of a Private Limited Company can be a tedious process without professional support. That's where Adviso comes in. At Adviso, we provide expert services for the online company registration process on the MCA website. Our experts, comprising Lawyers, CA, and CS, will guide you through every step of the journey to ensure your company lists smoothly and efficiently. With Adviso's expertise and assistance, you can navigate the complexities of company registration with ease, saving time and ensuring compliance with all necessary regulations.