Private Limited Company
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Companies Act, 2013 does not permit registration of identical or similar names (Know more)
Reasons to Register a Company in India
Entrepreneurs choose to register a company due to various reasons. Two of the main reasons is that a company is a distinct legal entity having perpetual succession. Hence, a company is not affected by the death, insanity, or insolvency of an individual member. The following are some of the top reasons to register a private limited company in India.
Separate Legal Entity
As per Law, a company is an artificial judicial person established under the Companies Act. A company is a separate legal entity from its Directors and Shareholders. Hence, a company enjoys a wider legal capacity, to own property and incur debts - while the individual company members owe no liability towards the company’s creditors for debts.
Perpetual Succession
Perpetual succession means continuing or enduring forever., A company is considered to be legally active until it is wound up by its members through a legal process. Hence, perpetual succession denotes continuous existence of a corporation or company till it is dissolved legally. Thus, a company is unaffected by death or departure of any member.
Limited Liability
Limited liability is a legal responsibility towards a limited amount of debts. The liability of the members with reference to company’s debts are limited i.e.; limited to the face value of the share purchased by them. This limited liability protection is often not afforded to Directors of a company - who are held responsible for operation of a company.
Transferability of Shares
The ownership of a private limited company is determined by the number of shares held by its shareholders. Shares of a company can be transferred to any other person or legal entity in India or abroad, subject to the articles of association of a company and the shareholders agreement. The easy transferability of shares is one of the top reason, Entrepreneurs opt to register a company.
Owning Assets
A company can acquire, own, transfer any type of tangible or intangible asset in India. A shareholder is not eligible to claim the company’s property, as they are not owners of the company. A shareholder merely has an interest in the company arising under the articles of association of the company, measuring a sum for liability.
Equity Raising
A company is the only type of legal entity which can help the promoters raise equity funding from Angel Investors, Private Equity Firms and the Stock Exchange. A private limited company would suffice for raising equity funds from Angel Investors and Private Equity Investors. In case of listing or allotment of shares to more than 200 shareholders, a Limited Company would be required.
A Step-by-Step Guide to Company Registration Process
IndiaFilings can incorporate a company in less than ten days, subject to government processing times and availability of all documents.
- Step 1: Dedicated incorporation expert assigned for the engagement
- Step 2: Collection of information and documents for company registration from client
- Step 3: Application submitted for digital signatures to eMudhra
- Step 4: Name approval request submitted to MCA
- Step 5: Incorporation documents drafted based on the MCA approved name
- Step 6: Signing of incorporation documents by all Directors & Shareholders
- Step 7: Submission of incorporation documents to MCA for approval
- Step 8: Company incorporated with incorporation certificate & PAN
- Step 9: Other process or services begin as per customer requirement
Documents required for Company Registration
To register a company, various documents are to be submitted to the MCA as follows:
PAN Card: PAN Card copy of the proposed Directors of the Company will be required for Company Registration.
Address Proof: The address proof submitted must have the name of the Director as mentioned in the PAN Card and the most current address of the Director.
Residential Proof: The residential proof must also contain the name of the Director as mentioned in the PAN Card and must not be older than two months.
Registered Office Proof: In addition to providing identity, address and residential address for the Directors, proof must be provided to validate the registered office address of the Company.
- The registered document of the title of the premises of the registered office in the name of the company; OR
- The notarized copy of lease / rent agreement in the name of the company along with a copy of rent paid receipt not older than one month;
In addition to the above, the following must also be provided as proof of registered office:
- The authorization from the Landlord (Name mentioned in the Electricity Bill or Gas Bill or Water Bill or Property Tax Receipt or Sale Deed) to use the premises by the company as its registered office. This is usually referred to as NOC from Landlord; AND
- Proof of evidence of any utility service like telephone, gas, electricity, etc. depicting the address of the premises in the name of the owner or document, which is not older than two months.
Document submission
Identify the 2 directors and submit their documents as given to the below.
- Identity Proof- PAN (Indian Nationals ) or Passport (Foreign nationals)
- Proof of Address- Passport / Drivers License / Election ID / Ration Card / Aadhar ID
- Proof of residence- Bank Statement / Electricity Bill / Phone Bill
Name Approval
The proposed name is applied and obtained from the Ministry of Corporate Affairs. Upto 2 names can be provided. In case of rejection of both names, an opportunity is provided for re-submission of the form with 2 more names.
Digital Signature
Digital signatures must be obtained for the proposed directors of the company. Digital signature is required for signing of the incorporation application. However, digital signature is not required for obtaining the name approval.
SPICe+ form application
On obtaining the digital signature, the incorporation application can be submitted in the SPICe form with the MCA. There is no requirement for obtaining the RUN name approval for submission of SPICe Form.
Company Incorporation
Company is incorporated along with the incorporation certificate, PAN and TAN within 2-3 business days.
Company current account
IndiaFilings has exclusive relationships with top Banks in India wherein we will open a zero-balance current account digitally through our platform. Based on your choice of Bank, we can forward the request digitally to the Bank for opening the company’s current account from the comfort of your home in any city or town in India.
Register your company and get LEDGERS accounting software.
Company Compliance
All companies registered in India are required to maintain compliance under various regulations. Failure to maintain compliance can lead to penalty or disqualification of the directors.
IndiaFilings can help you with accounting and maintaining of statutory compliances for the company at a very affordable price point.
Some of the important compliances for companies registered in India are given to the right. Please note that additional forms will also be applicable as per government notification.
Other than these mandatory compliances, there are others that need to be done depending on the company’s timeline. IndiaFilings also assists in increasing authorised capital, changing registered office, change in directors and others.
Know more-
Statutory Auditor appointment
30 days of IncorporationThe board of directors must appoint a practising Chartered Accountant within 30 days of incorporation.
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Commencement of Business (Know more)
180 days of IncorporationThe capital mentioned in the MOA [Memorandum of Association] must be deposited in a bank and commencement certificate must be obtained from MCA.
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Income Tax Filing
30th SeptemberCompanies registered in India must file income tax return each year in Form ITR-6.
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Annual Return
31st OctoberCompanies registered in India must file MCA annual return each year in forms AOC-4 and MGT-7.
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DIN KYC
30th AprilThe DIN KYC procedure must be completed each year for the directors of the company.
What is the Price I Need to Pay for Registering a Company?
The Cost of Incorporation / Registration a Company would vary from INR 6899/- to INR 29899/- depending upon the plan you choose.
Pay as you go grow pricing
All Inclusive Pricing - No Hidden Fee
Basic
₹
6899
all inclusive fees
- 2 Digital Signature - 2 Year Validity 1
- 2 Director Identification Numbers
- Name Approval 2
- Authorised Capital Fee 3
- Incorporation Fee
- Stamp Duty 4
- PAN & TAN
- LEDGERS Billing Software 5
- Bank Account Opening
Standard
₹
19899
all inclusive fees
- 2 Digital Signature - 2 Year Validity 1
- 2 Director Identification Numbers
- Name Approval 2
- Authorised Capital Fee 3
- Incorporation Fee
- Stamp Duty 4
- PAN & TAN
- LEDGERS Billing Software 5
- Bank Account Opening
- GST Registration
- Commencement of Business
- Auditor Appointment Support
- Bookkeeping for 1 Year
- Financial Statements & Board Reports
- ITR-6 Filing for Company
- MCA DIN eKYC for Directors
- MGT-7 & AOC-4 Filing
Premium
₹
29899
all inclusive fees
- 2 Digital Signature - 2 Year Validity 1
- 2 Director Identification Numbers
- Name Approval 2
- Authorised Capital Fee 3
- Incorporation Fee
- Stamp Duty 4
- PAN & TAN
- LEDGERS Billing Software 5
- Bank Account Opening
- GST Registration
- Commencement of Business
- Auditor Appointment Support
- Bookkeeping for 1 Year
- Financial Statements & Board Reports
- ITR-6 Filing for Company
- MCA DIN eKYC for Directors
- MGT-7 & AOC-4 Filing
- 1 Year GST return filings
- Digital signatures from eMudhra with 2 year validity along with ePass 2003 token.
- Upto 4 name options can be given in 1 RUN name approval request.
- Authorised capital is the amount of shares a company can issue at anytime and can be increased further in the future. Paid-up capital is the amount invested by shareholder and can be even Rs.2.
- In case of incorporation in Madhya Pradesh, an additional stamp duty of Rs.7500 will be applicable. In case of incorporation in Punjab, an additional stamp duty of Rs.10, 000 will be applicable. In case of Kerala, an additional stamp duty of Rs.3000 will be applicable.
- Premium LEDGERS Accounting Software with GST Portal Integration and eWay Bill Software.
- Statutory Auditor fee is payable on actuals directly to the Independent Auditor appointed by the Board of Directors. IndiaFilings will only be responsible for accounting, preparation of financial statements and filing of returns on behalf of the Company.
- Additional Directors can be added for an additional price of Rs.999 - if DSC & DIN is available. In case no DIN or DSC is available, cost for adding additional Director will be Rs.1999, inclusive of GST.
- Additional authorised capital can be purchased if requried at time of incorporation.
- Incorporations from Maharashtra state will also receive complimentary Professional Tax Registration.
Private Limited Company Bank Account Opening
Open a new or link your existing ICICI bank current account with LEDGERS for seamless bank account reconciliation, account balance check and sending of payments through NEFT / RTGS / IMPS.
Open a new or link your existing DBS bank business account with LEDGERS for seamless bank account reconciliation, account balance check and sending of payments through NEFT / RTGS / IMPS.
How to Open Private Limited Company Bank Account
Opening a current account for a private limited company is easier when compared to opening of current account for a sole proprietorship firm as a company is a registered legal entity – recognized by law. Therefore, once a company is incorporated, a bank account can be opened in the name of a company with the incorporation certificate of the company and identity/address proof of the Directors.
How do I register a private limited company?
Registering a company is easy through IndiaFilings. A minimum of two people are required to act as directors and shareholders. The director’s PAN card, address proof and bank statement are required along with address proof of the
registered office. The entire process takes 10 to 15 days.
What is authorised capital and paid up capital?
Authorised capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid up capital is the amount of shares issued by the company to shareholders. Authorised capital can be increased any time after incorporation to issue additional shares to the shareholders.
What is limited liability protection?
Limited liability is the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, the liability of the shareholders with respect to the company’s liabilities is limited.
How long does it take to register a private limited company?
On an average, the registrations get done within 10 to 15 days. The processing time would vary depending on the time taken by our clients to submit the necessary documents and government processing time.
Can NRIs and foreign nationals or foreign entities register a company?
Yes, NRIs, foreign nationals and foreign entities can register a company and invest in India, subject to the Foreign Direct Investment norms set by the RBI. However, incorporation rules in India require for one Indian national to mandatorily be a part of the company on the Board of Directors.
Is an address required in India for starting a company?
Yes, every company registered in India must have a registered office where all official communication is sent by the MCA, governmental agencies, financial institutions, etc., The registered office of a company can be in any state of India.
How do I check the availability of name for my company?
You can use the IndiaFilings company name availability search tab to search for available names in India. It is important to note that IndiaFilings would just provide available choices, based on identical names already registered.
How will the company incorporation certificate be provided?
Company incorporation certificate is provided as a pdf document by the Ministry of Corporate Affairs (MCA). MCA only provides soft copy of the incorporation certificate.
How do I open a current account?
Once the company is incorporated, a current account needs to be opened in the name of the company for transactions. Your advisor will guide you through the process of choosing the bank that you want to open the account with and get the documents like certificate of incorporation, Memorandum and Articles of Association, board resolution, copy of PAN allotment letter and utilities bill.
Is GST registration mandatory at this stage?
GST registration is mandatory for certain businesses. Companies dealing with e-commerce operations or any other interstate activity and companies with turnover of more than Rs. 40 Lakhs are required to obtain the same. GST registration takes just 3-5 working days with IndiaFilings.
What about the compliance for a private limited company?
A company is required to maintain certain compliances once it is incorporated. An auditor needs to be appointed within 30 days and income tax filing and annual return filing needs to be done every year. Apart from these, mandatory compliances like ‘Commencement of Business’ forms, and DIN eKYC also needs to be done.
Last updated: Jan 21, 2021
