What are The Benefits Available for Private Company Registration

There are multiple benefits of Private Limited Company Registration which sets it apart and makes it a preferable choice among other forms of business entities such as Sole

Proprietorship, Partnership, Limited Liability Partnership, One Person company and Public Company.

This article has been written with an intention to inform and educate readers about all the advantages of Private Limited company Registration, so that an informed choice can be taken on their legal statuses.

As the third largest start-up ecosystem, India has been witnessing sharp rise in number of business startups across different industries in the past years. Most of these startups operate at a smaller scale and cater the needs of local customers.

What is a Private Limited Company?

In general sense, a Private Limited Company is a form of Company Registration in which entire shareholding is held by small number of people (Maximum 200) and restricts shareholders from trading shares publicly.

Private Limited Company Registration under Companies Act, 2013
Company registration including “Private Limited Company Registration” is governed by the Companies Act, 2013. Registrar of Companies (ROC) is the authority under Ministry of Corporate Affairs (MCA) which regulated the procedure for Pvt Ltd Registration Online.

What are the benefits available for Private Company Registration

There are various advantages for company registration some of which are highlighted below:

• Limited Liability - The liability of members of the company is limited to the extent of share capital held by them, in this way the personal assets of the members are protected in case company’s assets are insufficient to pay off the liability.
• Perpetual succession - Company has entity distinct from that of its members and even in the event of death of all the members the entity of company remains intact. Unless and until it has been legally wound up.
• Professional image - The corporate form of business entity gives a professional image in the market. Which helps it to attract number of customers.
• Easy access to capital - The company form of business entity works in the transparent working environment due to constant reporting of its working to Registrar of Companies (ROC), which along with good credit score can have easy excess to capital.
• Transferability of shares – Shares are considered at par with movable property therefore shares are freely transferable except in the case of private company or OPC.

*Eligibility for Pvt Ltd Company Registration
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The following are the eligibility requirements for Online Company Registration in India including Pvt Ltd Company Registration

• Minimum 2 members and maximum 200 members
• Non residents and foreigners are allowed for Private Limited Company Registration in India.
• It should have unique name
• There should be minimum 2 and maximum 15 directors. More than 15 directors are allowed subject share holders approval through special resolution.
• Requirement of DSC of all the subscribers and first directors.

*Private Limited Company Registration Process
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Private Limited Company Registration Process consists of:
• Obtaining Digital Signature Certificate (DSC) of Directors and Subscribers
• DIN application for Directors
(Note: DIN up to 3 directors can be applied for in Pvt Ltd company registration application form (SPICe Plus form)

• Checking Private Limited Company Registration Name Availability on MCA portal and public search of trademark portal i.e. https://ipindiaonline.gov.in/tmrpublicsearch/frmmain.aspx and applying for Private Limited Company name reservation application.
• Application for “Private Company Registration Online” along with all attachments.
• Payment of Private Company Registration Fees
• Obtaining Certificate of Incorporation (COI)

*Documents for Private Limited Company Registration
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As of now you are aware of Private Limited Company Registration Process the next is to know about the private limited company registration documents, these are listed below:

• Self-attested copy of PAN card and Aadhar Card of Subscribers to MOA and Directors.
• Self-Attested copy of Bank Statement or Utility Bill (should not be older than 2 months) as present address proof of Subscribers and Directors.
• Self-Attested copy of Voter ID/ Driving License/ Passport as permanent address proof of subscribers and directors.
• Consent Letter in form DIR-2 and declaration as to non-disqualification and interest in other entities in form DIR-8 for first directors.
• Rent agreement/ NOC from owner and utility bill for Private Limited Company Registered Office address.
• Details regarding the share capital of the company including the authorised share capital and paid-up share capital of the company.
• Details about the business activity and NIC code of business activity of the company.

*Private Limited Registration Fees in India
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*The Cost of Private Limited Company Registration consists of following:
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• Cost of DSCs of Subscriber and first directors: It may cost around1000 per DSC. Rest it depends upon the discretion of DSC issuing agency and location of the agency.
• Fees For Name Reservation: Rs 1000 per Application, however this cost can be saved if application is filed in integrated form SPICe plus along with incorporation application.
• Stamp Duty Fees: It depends upon the Authorized Share Capital of the company and the state where Private Limited Company Registered Office is proposed to be situated.
• Payment For PAN And TAN: Government fees for Rs. 65.00 and Rs. 66.00 for allotment of PAN and TAN.
• Fees for Company Registration Consultant: For incorporation of OPC consultation and professional certification of CA/CS/CMA in practice is required, the professional charges for which are subject to their discretion.

Thank you, for giving your valuable time for reading this article, if you have any query or suggestion, please let us know in the comment section. If you are looking for professional assistance for Private Limited Company Registration in India then please contact our team of experts at Compliance Calendar LLP at [e-mail] or connect with our team at 9988424211 and we would be happy to support you.