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Private Limited Company Registration
Overview
This is the most popular and preferred form of entity, highly recommended for Startups, New Businesses and Closely Held business groups. Other than that, setting up a Private Limited Company is very pocket friendly for budding entrepreneurs and small business owners.
A Private Limited Company can be formed as soon as within 2 working days with lesser number of forms to fill up, paper-less signing and single window clearance for all basis registrations required for the company viz; Certificate of Incorporation, GST Registration, PAN & TAN allotment, Opening of Bank Account, ESIC Registration, EPFO Registration, Professional Tax Registration, DIN Allotment, Shop & Establishment Registration.
Private Limited is a company wherein the liability of the shareholders/subscribers is limited to the extent of the shares held by them. It is a type of company that offers limited liability or legal protection to the shareholders. This is owned entirely by the privately held group of individuals/entities contributing a certain amount of capital for the formation and functioning of the business.
Features & Benefits of Private Limited company registration:
Features of Private Limited Company Registration:Members/Subscribers/Directors
Minimum number of members required at the time of formation of a Private Limited Company is 2 (Two).Naming
It is necessary for a Private Company to name the company wherein it includes the word “Pvt Ltd” or “Private Limited” in the end of the name for example: ABC Pvt Ltd. XYZ Private Limited, etc.Perpetual Succession
In case of any change in the shareholder or director the company would still exist, without any change in its functioning of business. It means that there would be no change in the rules or regulations, or the rights of the members, and even existence of the company. Hence, it is said that this type of business has perpetual succession.Minimum Capital
There is no concept of minimum capital requirement in case of incorporation of a Private Limited Company. However, STARTUP SAMPARK recommend its clients to at least contribute 50,000/1,00,000 Rupees as a Capital, to avoid any minimum balance requirement charges of opening of current bank account.Benefits of Private Limited Company Registration:
Tax AdvantageTo encourage investments in structured and corporate entities, the finance ministry has reduced the effective tax rates of domestic companies to 25.17% including cess and surcharge and for domestic manufacturing companies incorporated after 1st October 2019 to 17.01 percent including cess and surcharge. This is very low as compared to other forms of entities. However, dividends are subject to Dividend Distribution Tax).Separate Legal EntityA Private Limited Company is a separate legal entity, separate from its founders and directors. The company can operate on its own name simply by opening a bank account to own assets and enter into contract with parties. This also provides right to sue third parties in case of any defaults. The separate ownership and management help both – the company and the management to focus on their potential works. The shareholders assign responsibility to operate and run the company without losing control in the form of voting.Limited Liability of MembersUnlike other traditional forms of entities, under this type of structure, the shareholder’s personal assets are not exposed to liability of the company. Their liability stays limited only to the capital subscribed and unpaid by them.Fund RaisingThe Private Limited Company structure is the most preferred structure for banks and equity investors for loans and investments. Under the various provisions of Companies act, the lenders and investors are protected for their loans and capital investments. Pvt. Ltd. Company registration process is stringent enough to make this structure credible among others which makes fundraising or borrowing from external sources easier. The organization itself provides a number of ways to raise funds in the form of private placement, rights issue, bonus issue, ESOPs and more.Documents Required for Private Limited Company Registration
Scanned Copy of:- PAN & Aadhaar of all the Subscribers/Directors
- Passport size photograph of all the Subscribers/Directors
- Specimen Signature of Authorised Signatory
- Utility Bill of Registered office address (Not older than 2 months) (Electricity bill preferred)
- No objection certificate from legal owner of Registered office address (Format to be provided by STARTUP SAMPARK)
- Driving License or Passport or Voter’s ID (Any one of it) of every Subscribers/Directors
- Latest Bank Statement (without password protection) or Electricity Bill or Mobile Bill or Telephone Bill of every Subscribers/Directors. (Any one of it) (Not older than 2 months)
- Email Id & Phone No. of all Subscribers/Directors
- Highest Qualification of all Subscribers/Directors
- Place of Birth of all Subscribers/Directors
- Number of Months/Years of stay at current address
- Main Business Objects of Proposed Company
- Capital Contribution and shareholding division
Difference between Partnership Firm, Private Limited Company & Limited Liability Partnership Firm
| Particulars | Private Limited Company | Limited Liability Partnership (LLP) | Partnership Firm |
|---|---|---|---|
| Governing body | Private Limited Company is governed under the Companies Act, 2013. | Limited Liability Partnership (LLP) is governed under the Limited Liability Partnership Act, 2008. | Partnership Firm is governed under the Partnership Act, 1932 |
| Audit of accounts | Auditing of the financial statements of a Private Limited Company is mandatory. | Auditing is necessary only if the annual turnover exceeds Rs. 40 lakhs, or contribution exceeds Rs. 25 lakhs in a financial year. | Auditing is necessary only if the annual turnover exceeds Rs. 40 lakh, or contribution exceeds Rs. 25 lakhs in a financial year. |
| Maximum members | Maximum number of members in a Private Limited Company is 200 | Maximum number of members in an LLP is unlimited. | Maximum, in case of general business, 20 people, and in case of banking business, 10 people. |
| Minimum capital | There is no minimum capital required for the formation of Pvt Ltd | There is no minimum capital required for the formation of an LLP | There is no minimum capital required for the formation of an LLP |
| Name format | The name of a Private Limited Company should end with the words Pvt Ltd or Private Limited | The name of an LLP should end with the words LLP | There is no as such requirement to suffix LLP or Pvt Ltd |
| Flexibility | A Private Limited Company is more flexible as compared. | An LLP is less flexible as compared to Private Limited Company | A Partnership firm is less flexible as compared to other two formats |
| Compliance | The compliance requirement in a Private Limited Company is high. | The compliance requirement in case of LLP is moderate. | The compliance requirement in case of Partnership Firm is very low. |
Startup sampark procedure for private limited company registration
Private Limited Company Registration is very detailed procedure, which requires keen knowledge, procedure and team of professionals. Each Company incorporation has its tailored requirements. We at STARTUP SAMPARK have a full-fledged, dedicated team of professionals. You are required to fill the form and then our experts will reach out to you, to know the exact requirement and gather further information. Then our experts at STARTUP SAMPARK will be at your disposal for assisting you with guidance concerning Company Registration and its compliances. Our professionals will assist you in planning seamlessly at the least cost, confirming the successful conclusion of the process. We shall guide you with Do’s and Don’t’s as well. We will begin working on your request once all the information is provided, and the payment is received.Why STARTUP SAMPARK?
STARTUP SAMPARK is one of the platforms which coordinates to fulfil all your Secretarial, Legal, Licensing and Taxation requirements and connect you to consistent professionals. Our team consist of Chartered Accountants, Company Secretaries, Cost Accountants, Advocates, Patent and Designs Agents, Trademarks & Copyright Attorneys, Paralegals and other legal professionals.We are a management consultancy and technology platform to simplify legal and business related matters. We are committed to help start-ups, small business owners and non-compliant businesses in solving their legal, secretarial and taxation compliance related to setting up and running the business smoothly and compliantly.Our clients can also track the assignment progress at all times through a dedicated portal provided to you along with User Id and Password. You can comment and find the resolution and ask questions on the dedicated portal provided to you. If you have any questions about the company incorporation and registration process, our experienced representatives are just a call away.- Step 1: Fill the query form.
- Step 2: Our Expert will connect with you
- Step 3: Make payment through hassle free payment portal
- Step 4: Get confirmation on mail and receive User Login and password
- Step 5: Submission of documents with us on our client portal
- Step 6: Executive will process your application
- Step 7: Track progress of your order all the time on our client portal
- Step 8: Greetings, Order completed
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FAQs
A private limited company is a company which is privately held by a group of persons for their business.
Private limited company means an incorporated entity with two or more persons. It is the most preferred form of entity by start-ups and businesses to start a new business or to convert their existing business into Private limited company.
The government cost (i.e Stamp duty and other charges) for private limited company registration are very nominal. Government fee varies state wise and capital contribution wise. Please use our calculator to calculate combined government and professional fee. You can choose from our customized packages for registration of your private limited company, as per your requirement.
You need to first apply for name approval. Name approval is completely optional. We recommend this only in the case where the name availability is complicated, so to secure the name timely and to avoid the hassle of form rejection and delay in incorporation process. Once name is approved, you can start with private limited company registration with us. STARTUP SAMPARK helps you from name approval to incorporation process and guidance with setting up a Corporate Bank Account for your newly incorporated private limited and further compliances.
Please refer our above section for documents required.
Step 1: Choose a unique name and apply for name approval in Part A (optional).
Step 2: Application for Digital Signature Certificate (DSC).
Step 3: Filing of Company incorporation in Spice+ Part B.
Step 4: Generation of Incorporation Certificate along with PAN and TAN of the Company.
Step 5: Guidance with opening of Company’s current account.
Step 6: Filing of Form INC-20A for commencement of business.
Step 1: Choose a unique name and apply for name approval in Part A (optional).
Step 2: Application for Digital Signature Certificate (DSC).
Step 3: Filing of Company incorporation in Spice+ Part B.
Step 4: Generation of Incorporation Certificate along with PAN and TAN of the Company.
Step 5: Guidance with opening of Company’s current account.
Step 6: Filing of Form INC-20A for commencement of business.
The minimum number of members required for the formation of a Private Limited Company is 2.
Apart from Director’s who already have a valid DIN, maximum 3 DINs can be allotted in one single incorporation form. For issuance of furthermore DINs, separate form DIR-3 has to be filed, after company incorporation.
In a Private Limited Company, a director is the person who manages and carries on the business, and acts on behalf of the business based on the duties assigned under the directorship appointment letter and as per the Companies Act.
No, in a public company, there can be unlimited members, however the maximum number of members in a Private Limited Company can only be 200.
DSC is a short form for Digital Signature Certificate, is a legally recognized method of signing the documents electronically, & DIN is a short form for Directors Identification Number, is an identification number, issued by the Ministry of Corporate Affairs, to the directors of company, or the designated partners of the LLP firm.
The liability of the members in a Private Limited Company is limited, to the extent of the amount invested in share of company.
There are at least 2 directors required to form and continue a private limited company.
There is no concept of minimum capital requirement in case of incorporation of a Private Limited Company.