Introduction to Private Limited Company:-
A private limited company is a business entity designed for small businesses. It offers several advantages, including limited liability for owners, a cap of 200 shareholders, and restrictions on public trading of shares.
Advantages of Registering a Private Limited Company in India:-
- Limited Personal Liability: Shareholders in a private limited company have limited liability, meaning they are only liable to pay for the company's debts up to the amount of their share contributions. They are not personally responsible for the company's liabilities.
- Separate Legal Entity: A private limited company is a distinct legal entity separate from its owners. This separation means that the company is responsible for managing its assets and liabilities, creditors, and debtors. Shareholders are not held personally accountable for the company's losses, protecting their personal assets.
- Capital Raising: Despite the compliance requirements, entrepreneurs prefer registering as a private limited company because it allows them to raise funds through equity. This structure facilitates expansion while limiting personal liability.
- Trustworthiness: Private limited companies in India are registered under the Companies Act 2013 and can be easily verified through the Ministry of Corporate Affairs (MCA) portal. All directors' details are provided during company formation, increasing trust in this business structure.
- Perpetual Existence: A company has 'perpetual succession,' which means it continues to exist until legally dissolved. Even if a member leaves or passes away, the company remains intact.
Different Forms of Company Registration:-
There are various forms of company registration in India, including:
- Partnership Firm Registration
- Proprietorship Firm Registration
- Limited Liability Partnership (LLP) Registration
- One Person Company Registration (OPC)
- NGO Registration (Section 8 Company Registration)
Confused about which company structure to choose? Try out our tool to decide!
Steps for Registering a Private Limited Company:-
Interested in registering your company as a private limited entity? While the registration process can be complex and involves various compliance requirements, there's no need to worry. Our team of experts is here to assist you at every stage of the private limited company registration. Rather than navigating the entire registration process on your own, you can take advantage of our expert services.
Step 1: Obtain a Digital Signature Certificate (DSC):
Digital signatures are required for filing company formation forms. You can obtain DSCs from government-recognized certifying authorities. It's essential to get a class 3 category DSC.
Step 2: Apply for Director Identification Number (DIN):
DIN is necessary for individuals wanting to become directors in a company. You can obtain DIN through various methods, including filing Form DIR-3, which requires basic details and identity/address proof. With the introduction of SPICe+, DINs can now be applied within the same form for up to three directors.
Step 3: Name Approval:
To get your company's name approved, you can use Part-A of the SPICe+ Form, which allows for a 'name reservation' with two proposed names. After approval, the name will be reserved for 20 days, during which the incorporation process must proceed.
Step 4: File Form SPICe+ (INC-32):
Form SPICe+ simplifies the incorporation process. It combines various tasks, including DIN allotment, name reservation, and incorporation. It also covers mandatory registrations like PAN and TAN application, EPFO and ESIC registration, and more.
Step 5: File e-MoA (INC-33) and e-AoA (INC-34):
Electronic Memorandum of Association (e-MoA) and electronic Articles of Association (e-AoA) streamline company registration by allowing online filing.
Step 6: Apply for PAN and TAN:
The SPICe+ form auto-generates PAN and TAN application forms. You'll receive the Certificate of Incorporation, PAN, and TAN via email.
Required Documents for SPICe+ (INC-32) Filing:-
Documents needed for filing Form SPICe+ (INC-32) include:
- Affidavit by subscribers
- Proof of office address
- Copies of recent utility bills
- Copy of approval for specific names
- Trademark registration certificate (if applicable)
- NOC from property owner (for rented offices)
- Identity and address proof for subscribers
VakilKaro Role in Private Limited Company Registration:-
VakilKaro offers a seamless process for Best private limited company registration in four simple steps:
- Purchase the Plan: Buy our Private Limited Company Registration plan and get in touch with our experts to clarify your queries.
- Upload Documents: Upload necessary documents on our website, including photos of directors, address and ID proofs, specimen signatures, and more.
- Document Verification and Signing: Our experts will verify uploaded documents, and you'll need to sign them.
- Form Filing: Our experts will file forms on the MCA portal, including a Digital Signature Certificate application, name reservation, incorporation, PAN, and TAN. You'll receive the Certificate of Incorporation within approximately 10 days.
Cost of Private Limited Company Registration:-
The following are the government fees required for registration:
Plan amount (includes the below-mentioned fees) |
₹ 9999* |
DSC |
₹ 2000 |
DIN |
₹ 100 |
Professional Fees |
₹ 3799 |
Stamp Duty (approx) |
₹ 2000 |
Notary Fees |
₹ 500 |
Govt Fees (RUN, PAN, TAN) |
₹ 1200 |
Goods and Services Tax @ 18% |
₹ 684 |
Registration Timeline:-
The entire process, including DIN approval, name approval, and incorporation, takes around 10 working days. The new SPICe+ form has expedited the registration process.
Registering a private limited company is now faster and more efficient, making it a great choice for businesses looking to expand and grow."