Private Limited Company should be the preferred choice of business if you are planning to raise funding. It is a privately held business entity with limited liabilities.
It allows a significant degree of separation between operations and ownership. It gives investors a choice of exiting the company without any hassle by just selling the shares without being liable for company affairs.
If a business is planning to go global, then the Private Limited Company is the only form which allows 100% Foreign Direct Investment, without any prior government approval.
To set up a Private Limited Company, one needs to:
It allows a significant degree of separation between operations and ownership. It gives investors a choice of exiting the company without any hassle by just selling the shares without being liable for company affairs.
If a business is planning to go global, then the Private Limited Company is the only form which allows 100% Foreign Direct Investment, without any prior government approval.
To set up a Private Limited Company, one needs to:
The name of the company is its trade name or brand name along with its principal activities, and this company name is a registered name by which an incorporated company is identified. It is critical that one chooses a unique name which does not resemble the name of any existing LLP, any registered private company or trademarks.
‘Company Address’ is the address of the Registered Office of the proposed company which is used for all official communications. A temporary address is required, at the time of registration, which could be the address of any of the including Directors. Post registration process applicant has to provide the permanent business address of the registered office with all the documentary proofs of address, ownership.
Minimum 2 Directors are required to manage the affairs of the company who can be same as shareholders. At least one of the directors has to be a Resident of India. To be a Director of a private limited company, one must have a DIN
DIN is an eight digit number allotted to every director. No person can become a director without first applying for DIN. It is a unique identification number for an existing director or a person intending to become one, and it is allotted by the Ministry of Corporate Affairs (MCA).
Digital Signature Certificate (DSC) is a digital signature which can be attached to an electronic document to verify the applicant’s identity.
Minimum 2 shareholders are required in a company limited by shares. They can be Natural or Artificial Persons such as registered companies or LLP. A shareholder can be same as the director of the company. Maximum of 200 shareholders are allowed, shareholders are the owners of the company, and they have certain rights as shareholders need to vote for appointing directors and agree on changes to the company.
Memorandum of Association (MOA)
MOA is a document which contains the objective and power of the company and defines the relationship of the shareholders with the company.
It must be drafted at the time of incorporation and must contain six clauses revealing the company name, registered company address, its limited liabilities, share capital, company objects, and association of the shareholders and other stakeholders with the company. Articles of Association (AOA)
AOA are the by-laws of the company which specifies the regulations for a company’s operation. It defines the roles and duties of the directors and other officers of the company. Information such as the total number of members, share capital, rules for a meeting of the company, voting power of members must be included in the AOA.
The company may alter it by passing the resolution at a general body meeting of shareholders. Also, AOA may or may not be registered.
MOA is a document which contains the objective and power of the company and defines the relationship of the shareholders with the company.
It must be drafted at the time of incorporation and must contain six clauses revealing the company name, registered company address, its limited liabilities, share capital, company objects, and association of the shareholders and other stakeholders with the company. Articles of Association (AOA)
AOA are the by-laws of the company which specifies the regulations for a company’s operation. It defines the roles and duties of the directors and other officers of the company. Information such as the total number of members, share capital, rules for a meeting of the company, voting power of members must be included in the AOA.
The company may alter it by passing the resolution at a general body meeting of shareholders. Also, AOA may or may not be registered.
Memorandum of Association (MOA)
Spice E-Form INC-32 along with link Form Spice MOA (INC-33) and Spice AOA (INC-34). is filed for the incorporation of the company. Spice E-Form INC- 32 is a simplified way to get Director Identification Number (DIN), Name Approval and Incorporation process. It’s a fast track mode to get the company incorporated in the expedited manner. After filing the same Certificate of Incorporation has been issued by MCA within 2 to 3 days.
Brief about Spice Form INC-32 (Replaced Form INC-29)
Spice means Simplified Proforma for Incorporating Company Electronically. MCA has facilitated the process of incorporation by introducing SPICE E-Form INC-32 with effect from 01/11/2016. It is a simplified process of incorporating a company. This process provides the same facilities as earlier in E Form INC-29 but the only difference between the two is introducing the filing of Memorandum and Articles electronically in Spice MOA and Spice AOA. Now, Spice E Form INC-32 is filed along with link form Spice MOA (INC-33) and Spice AOA (INC-34). After filing such form, Certificate of Incorporation has been issued by MCA within 2 to 3 days. In such process Aadhaar Card is mandatory for obtaining DIN of Director. This process has been introduced for saving lot of time and for ease of business.
Spice E-Form INC-32 along with link Form Spice MOA (INC-33) and Spice AOA (INC-34). is filed for the incorporation of the company. Spice E-Form INC- 32 is a simplified way to get Director Identification Number (DIN), Name Approval and Incorporation process. It’s a fast track mode to get the company incorporated in the expedited manner. After filing the same Certificate of Incorporation has been issued by MCA within 2 to 3 days.
Brief about Spice Form INC-32 (Replaced Form INC-29)
Spice means Simplified Proforma for Incorporating Company Electronically. MCA has facilitated the process of incorporation by introducing SPICE E-Form INC-32 with effect from 01/11/2016. It is a simplified process of incorporating a company. This process provides the same facilities as earlier in E Form INC-29 but the only difference between the two is introducing the filing of Memorandum and Articles electronically in Spice MOA and Spice AOA. Now, Spice E Form INC-32 is filed along with link form Spice MOA (INC-33) and Spice AOA (INC-34). After filing such form, Certificate of Incorporation has been issued by MCA within 2 to 3 days. In such process Aadhaar Card is mandatory for obtaining DIN of Director. This process has been introduced for saving lot of time and for ease of business.
Certificate of Incorporation is a certificate issued by the Ministry of corporate affairs/Registrar of companies for the commencement of business; it is a confirmation of and conclusive evidence of incorporation of a company.
Documents Required For Registering A Private Limited Company
- PAN Card
- ID Proof (Aadhar card/ Voter ID/ Driving license)
- Address Proof in the name of director (Any utility bill i.e., mobile bill/water bill/ electricity bill, or bank statement which should not be older than
two months) - 4 Passport Size Photographs.
- Address proof of Registered office
- Any utility Bill (i.e., mobile bill/water bill/ electricity bill) of the registered office
WHY PRIVATE LIMITED COMPANY?
Ease of Formation
A Private Limited Company can be incorporated with minimum 2 directors by filing Spice E Form INC-32 along with link form Spice MOA (INC-33) and Spice AOA (INC-34).. Once the documents get verified, certificate of incorporation has been issued by MCA within 2 to 3 days.
Separate Legal Entity
The biggest advantage of a Private Limited Company is that its identity is distinct from that of its members. A company is a separate person having its own rights & Obligations.
Perpetual Succession
In case of death of the owner or transfer of shares, your business won’t get affected. There will be no effect on firm’s continuance.
Limited Liability
The greatest benefit of Private Limited Company is limited liability. If any liability arise then its member is not personally affected; members are only liable for unpaid shares held by them and not more than that. Stakeholders are not liable for corporate debts and liabilities
Greater Flexibility
A Private Limited Company is required to perform lesser legal formalities as compared to a Public Limited Company. It enjoys special exemptions and privileges under the company law. Therefore, in Private Limited Company, less number of compliance is required.
Secrecy
A Private Limited Company is not required to publish its accounts or file several documents. Therefore, it is in a better position than a public company to maintain business secrets.
Investment
Flexibility to raise investments or loans from NRIs and Foreigners. Easy to raise investments and corporate loans.
Transparency
Private Limited Company enjoys enhanced transparency thus able to win the trust of general public.
Minimum Compliances
Private Limited Company enjoys enhanced transparency thus able to win the trust of general public.
FREQUENTLY ASKED QUESTION
Digital Signature Certificate (DSC) as the name suggests it is a digital signature of an individual and it is required for filling the e-forms of company incorporation electronically to Ministry of Corporate Affairs.
WHAT ARE THE DOCUMENTS REQUIRED FOR PRIVATE LIMITED COMPANY INCORPORATION?
Self attested PAN card copy.
Four Photographs.
Self attested copy of any one of the Identity Proof like Driving License, Passport, Voter ID & Aadhar Card
Self attested copy of the Address Proof like Bank Pass Book / Bank Statement, Telephone Landline Bill, Mobile Bill & Electricity Bill
Company Address proof any one of the Electricity Bill, Telephone Bill, Mobile Bill & Gas Bill, and Rent Agreement, (if rented) AND NOC for doing Business & for
taking Registration.
taking Registration.
The Director required to be above 18 years of age and must be a natural person. He may or may not be citizen or residence of India. We can say that even a foreign nationals can be Directors in Indian Private Limited Company.
Yes, promoters need to be present to personally meet us at our office or meet at any place for the registration of a Company. All the incorporation documents required to be present in original and scanned copy also required to submit
The Common Seal is the official signature of the company. Any documents on which Common seal is affixed, is deemed to be signed by the company.
In case of Private Limited Company, minimum no. of members are two and maximum are two hundred.
In case of Private Limited Company, minimum capital required is Rs.1,00,000/-.
To incorporate a company we required approximately 5 to 8 working days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy process of incorporation, please choose a unique name for your Company and ensure you have all the required documents are provided before starting the incorporation process.
Yes, subject to Foreign Direct Investment (FDI) Guidelines a NRIs / Foreign Nationals / Foreign Companies can hold shares of a Private Limited Company.
The Unique Number is required to allot to an Individual which remains valid for whole life of the individual and is required to become director of any company.
Firstly we just need to find a unique name as prefix and promoters need to provide name of the proposed company along with significance of word. Secondly the name needs to include a word about the company business activity. Finally before selecting Names it will be advisable to check on Google, MCA Portal, MCA Guidelines and Trade Mark site the availability of Name.
MOA & AOA of the company defines all the rules and regulations and the working flow of company. It also defines everything about the company's objects, capital, identity, goals and working pattern. After the name of the company is select the Memorandum of Association and Articles of Association of the company is required to be drafted, the last page of the MOA and AOA is known as subscriber sheet which need to be filled in by the promoters in their own hand writing including their personal details and shareholding ratio.
Get the certificate of incorporation along with PAN & TAN within 6 to 10 days after uploading the Spice e-form INC-32, Spice MOA(INC-33), Spice AOA(INC-34) along with Form 49 A(PAN) and 49 B(TAN).
We are the most sought after partner in India for registering a Private Limited Company using Spice Form INC-32. The whole registration process would take between 7- 10 days. This is subjected to ROC processing time.
Phase 1
Digital Signature Certificate(DSC) AND DIN (Director Identification Number) is required for the proposed Directors of the Private Limited Company. It can be feasibly procured for the proposed Directors within 1 to 2 days.
Phase 2
Select a company name after referring to the MCA Name and Trademark database. We will prepare the documents as per your suggested name and get your signature on all documents required to be signed for submission to the Ministry of Corporate Affairs.
Phase 3
All required documents need to be submitted with Spice E Form INC-32 alongwith link Form Spice MOA (INC-33) and Spice AOA (INC-34). Once the name is accepted and documents get verified, MCA will issue Certificate of incorporation within 2 to 3 days
Phase 1
Digital Signature Certificate(DSC) AND DIN (Director Identification Number) is required for the proposed Directors of the Private Limited Company. It can be feasibly procured for the proposed Directors within 1 to 2 days.
Phase 2
Select a company name after referring to the MCA Name and Trademark database. We will prepare the documents as per your suggested name and get your signature on all documents required to be signed for submission to the Ministry of Corporate Affairs.
Phase 3
All required documents need to be submitted with Spice E Form INC-32 alongwith link Form Spice MOA (INC-33) and Spice AOA (INC-34). Once the name is accepted and documents get verified, MCA will issue Certificate of incorporation within 2 to 3 days
A Private Limited Company must appoint an Auditor and get its statutory audit done by a Chartered Accountant at the financial year end and it also required to file Income Tax Return to Income Tax Department. In Addition to that a company also required to file its Annual Filling Forms with Registrar of Companies. Further the Private Limited Company must conduct Board Meeting atleast once in every 3 months and an Annual General Meeting, atleast once in every year and also maintain Minutes of every Board Meetings and General Meetings and Statutory Registers.
The director has been entrusted with the responsibility of managing the company in the best efficient manner. The responsibility of a director depends upon the kind of directorship he holds in the company. For instance, an executive director or a managing director has greater responsibility than a non-executive director who might hold the directorship as an expert or consultant. A director is liable for misconduct or fraud or if found guilty of default.
In case of Private Limited Company, minimum no. of directors are two and maximum are fifteen.
A Company can own and enjoy property in its own name, neither the members are not owners of the company's property and nor the members have insurable interest in the property of the company.
