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How to Register Pvt. Ltd Company

ghiselle rousso by ghiselle rousso
December 7, 2022
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The year 2021 has shown a historic growth for the country’s Start-up ecosystem as the start-ups raised the highest ever of funding of $43 Bn across 1500+ deals. The year also saw around 44 start-ups joining the club of the unicorn says the data of www.inc42.com According to the latest start-up Funding Report Q3 2022, Indian start-ups have raised the valuation $134 Bn almost which is almost twice then that of the 2019.

By the above-mentioned data, it is clear that the Start-up trend in India is increasing day by day and people are getting attracted to register their business as a private limited company which has become the most preferred form of business structure among the start-up founders. However, we have noticed that the young minds have the brilliant ideas but feels difficulty in the execution because of not having sufficient and proper knowledge about Legal Compliances to be followed in order to run their Private Ltd Company Online

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To bring clarity in the minds of the young generation, in this write-up you will read about the advantage of the Private Limited Company Registration, documents Required for Private Ltd Registration and Government fee in the process of Private company registration in India.

Advantages of The Private Limited Company Registration in India

Easy Formation

To promote the start-up trend in India the government has made the company registration process less hectic and time consuming to bring ease of doing business. However, you need to submit all the relevant documents and proofs. Kindly note that the steps of formation of the company has become easier but the scrutiny by the department is still rigid process. Therefore, it is advised to submit all the verified and self-attested documents for avoiding the resubmission of the Application. Get in touch with us at info@ccoffice.in in case of any query.

Attract Funding

Private Limited Company attract funding by the Angel Investors and VC Firms who are the high net-worth individuals who lends money to the company in exchange for a share of the company’s ownership. They usually invest only with the companies which have high potential and exponential growth. Moreover, have a desire to become a public company in near future. firm.

Easy to expand the business globally

Private limited company and limited companies are a great way to expand business globally. As these entities are allowed to raise fuds through foreign direct investment of up to 100% through the automatic route, meaning any foreign person or foreign entity may can invest in Indian company including private limited company without prior central government approval. Whereas other business entities like proprietorship, partnership and limited liability partnership are required to obtain prior approval of central government before accepting any money from outside India under FEMA guidelines.

Lower compliance requirements

Registration procedure for Private Limited Company is quite simple and that is its maintenance. As it involves lower compliance requirements as compared to public company. Which makes it an ideal choice among all the business entities. For example, there are various sections of companies Act, 2013 under which private limited companies are granted exemptions and they are not required to comply with them.

Professional image

Corporate form of business entity has professional image due to its transparent functioning and continuous reporting requirements to regulators such as Registrar of companies, therefore they are able to attract good customer base and generate trust among its existing customers.

Limited liability

This is the most sought-after benefit of private limited company registration. The liability of its members is, limited to the extent of unpaid amount on the share capital of the company or the guaranteed amount undertaken by them irrespective of the fund requirement of the company. Therefore, this feature of private limited company provide protection to the personal assets of the company.

Procedure for Registration of Private Limited Company

The steps for registration of private limited company are listed below:

  1. Selecting a name of the proposed private limited company on the basis of through research related to the name of the company and name search report prepared on the basis thereon.
  2. Filing an application to Central registration centre (CRC) for reservation of name of the company and obtaining name approval letter.
  3. On getting name approval letter, name stands reserved for initial period of 20 days, which may extend to further period not exceeding 60 days in total on filing application for the same and payment of applicable fees.
  4. Obtaining identity and address proof of directors and promoters of the company along with proof of registered office of the company and other relevant details relating to share capital and business activity of the company.
  5. On the basis of received documents prepare the attachments of the company such as DIR-2, DIR-8, declaration as to deposits and other statutory declaration.
  6. Prepare incorporation form SPICe Plus Part-B along with other forms such as AGILE-PRO-S and SPICe MOA and SPICe AOA of the company.
  7. Filing of the required forms to MCA after login to the site.
  8. Payment of stamp duty and filing fees along with payment of fees for PAN and TAN of the company.
  9. On approval of application ROC will issue certificate of incorporation under his hand and the company stands incorporated.

FAQs on Private Limited Company Registration

  1. What documents are required to be taken for the registration of Private Limited Company?

Ans. For registration of Private Limited Company following documents are required to be taken from the promoters:

  • Self attested copy of PAN card and other identity proofs of the promoters.
  • Proof of address of the promoters such as utility bills and bank statement, however it is to be noted that these documents should be self-attested and shall not be older than 2 months.
  • Proof of registered office of the company such as utility bill and rent Agreement.
  • Details regarding the objects of the company and the share capital of the company.
  • Details regarding the educational qualification and place of birth of promoters.
  • Passport size photograph of the promoters.
  • E-mail ID and phone number of promoters.
  • DIN of promoters if any.
  1. Which forms are used for registration of Private Limited Company?

Ans. Forms used for registration of Private Limited Company:

  • SPICe Plus Part A for reservation of name.
  • SPICe Plus Part B for incorporation of company.
  • SPICe MOA or e-form INC-33
  • SPICe AOA or e-form INC-34
  • AGILE-PRO-S used for five services:
  • Obtaining GSTIN of the company
  • Obtaining PAN and TAN of the company
  • Opening of bank account
  • ESIC registration
  • Professional tax registration
  • INC-9, a declaration by the subscribers and first directors of the company

Thank you for giving your valuable time for r3eading this write up, we hope that it helps, if still you have any queries regarding the private limited company registration in India then you can connect to our team at info@ccoffice.in or call us at 9988424211.

Tags: How to Register Pvt. Ltd Company
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