Private Limited Company Registration In India | Fastest Online Company Registration Process
Setting up one's own company is the dream of every entrepreneur in India. If you're planning to start your own business, then registering a private limited company is the first step to achieving this dream. The primary process by which all business owners establish or incorporate their company is known as company incorporation or registration. Although there are various types of companies (such as public limited, private limited, one person, sole proprietorship, LLP registration, partnership, Section 8 companies, etc.), as per the 2013 Companies Act of India. However, private limited company registration is recommended because such organisations are suitable for small & medium-sized businesses.
All About Private Limited Company Incorporation
Private companies may be limited by guarantee (where members will be liable to pay for the losses) or by shares (where company liabilities amount to the share value owned by the stakeholders).
Being private entities, the liability of the company, its assets, and the total business capital are shared among a limited number of shareholders, who are restricted from publicly trading or transferring their shares to external parties. Moreover, the business and personal assets of various members are kept independent of the organisation's security.
The Importance of Forming a Private Limited Company
Private limited company registrations are done with the ROC (Registrar of Companies) at the MCA portal (Ministry of Corporate Affairs). All company details are available at the portal. Due to the transparency of the process, PLCs are considered more responsible and trustworthy entities.
Shareholders are mostly held accountable to pay for liabilities to the extent of the contributions they have made to the company.
Under PLC registration, the company is regarded as a separate entity that is unaffected by success and independent of any changes in membership occurring after the death of a member.
Private Company Incorporation Advantages
A private limited company
attracts more investments & preferred by investors, entrepreneurs, who wish to raise funds through expansion and equity without having to worry about liabilities.
bank credit opportunities as its registration process meets all compliance requirements.
These corporations provide greater stability & capital contribution and, as a result, have more potential to grow into larger organisations in the future.
Limited Liability to promoters, hence there personal assets are protected in case the business fails
Criteria For An Organisation To Qualify For The Registration Process
Minimum of two directors, one of whom must be a resident of India
The organization must also have authorized capital and provide a no-objection certificate (NOC) from the landlord
The Utility bill for the premises must be in the name of the landlord
Why Online Company Registration In India Is Preferred?
The process is time-savvy, convenient, more efficient, and cost-effective.
Owners need not get involved in lengthy paperwork.
With help from a seasoned chartered accountant, owners can easily proceed with the process, get their documents approved, and obtain the registration certificate with ease.
Online Company Registration Simplified In 5 Steps
Business owners first need to think of a unique name for their company and get it approved by the MCA. The process takes around 3–5 days. It is advisable to have multiple options in mind to avoid application rejection.
Next, owners need to fill out multiple forms (SPICe+, INC-32, e-AoA, etc.). The documents required for online private company registration in India include the following:
- Company bank account details,
- Aadhar card and PAN number of the directors or stakeholders; and
- The address proof of the business location.
Owners need to get these documents verified by their company secretaries, CAs, cost accountants, etc.
Thereafter, the applicants must pay the stamp duty amount and fees for the application processing.
Because traditional signatures are no longer accepted, every business must have a DSC (or digital signature certified) by relevant certification authorities, as well as a DIN (Director Identification Number) for each director.
After receiving digital signatures, collecting all the documents, and completing the necessary forms, applicants must forward the incorporation application to the MCA. The incorporation application is filed along with the electronic Articles of Association (eAoA) and e-MoA, or electronic Memorandum of Association. The MCA takes roughly five business days to process the application, verify the documents, and issue the registration certificate if it is deemed acceptable.
The entire process may appear intimidating to business owners due to the lengthiness of the paperwork and the inclusion of technical terminologies. Besides, there are a lot of things that need to be addressed following the registration process. E.g.,accounting outsourcing, tax filing, tax audits, account audits, etc. This is where hiring a CA (or chartered accountant) is a smart move. With their skills and several years of expertise, they can make this process quicker and eliminate the risks of getting your application rejected.
If you're looking for the CA firms in Bangalore that specialise in online company registration, managing subsidiaries of foreign companies, audits, and other business-related tasks, then B.C. Shetty & Co. is the place for you. They're a group of renowned chartered accountants that have several years of experience working with different public, private, and charitable institutions across different industries. Visit our website to learn more about our services.
How to check if your company name is Unique or already registered in MCA website
If you've already submitted your forms and documents for online company registration, you can check the status of your application by visiting the online portal of the Ministry of Corporate Affairs. On the home page, look for the option "View LLP Master Data or Company Data" listed under the MCA Services tab. Fill in your CIN (company identification number), captcha for verification, and click on the icon beside it to see the details.
How to Choose the Right Legal Structure for Your Online Company in India?
There are different types of legal structures for small and midsize businesses, as mentioned under the business laws. It includes private registration, public registration, partnership, sole proprietorship, S corporation, corporation, LLC (limited liability company) registration, etc. Business owners need to consider their type and nature of business, as well as tax and legal aspects, while registering their business. It would seem like a challenging task at first. Therefore, it is recommended that you hire a skilled, seasoned, and professional company registration service for your business.
What Common Mistakes to Avoid During the Online Company Registration Process in India?
Business owners must avoid typos or common grammatical errors in the name of the company or in other fields, when registering their business at the official MCA portal. They must provide relevant details related to the establishment. They should choose the appropriate category for their business and mention details of all shareholders, share allocations, etc., Additional regional taxes and laws applicable on the registration process also need to be considered.
what are the post incorporation compliances?
After you've successfully registered your private limited company, you have to take care of the following compliances within 15 to 30 days of registration.
- Opening Of A Business Account
- Filling Of Form INC-22:
- Appointment Of A Company Auditor:
- Statutory Register Maintenance:
- Formalities Associated With The Company Directors:
- Filing the INC-20A:
- Issuing Of Shareholder Certificates:
An official bank account needs to be opened in the company's name within 60 days from its date of inception, to maintain a record of all the business transactions.
All business owners must register their business location (i.e., the official address of the company) for formal communication by filling out the Form INC-22. It needs to be done within 15–30 days of registration.
As per the Companies Act's Section 139(1), a business must appoint an auditor within a month of registration.
All external communications happening at the company's end must carry mandatory details. E.g., Name, address & contact details of the company, website link, CIN, etc. This information needs to be present on the letters, invoices, notice papers, and other forms of official publications.
The Companies Act 2013, Section 173 (1) necessitates the organisation of a meeting with the BODs (Board of Directors), within a month of registration. Following that, the directors need to disclose their interests to the company, as mentioned in the Companies Act 2013, Sec. 184(1).
After receiving the private company incorporation certificate, all directors are expected to submit the INC-20A Form within 3 months of the company registration to commence any business.
The company must allot specific shares to the shareholders by officially issuing a certificate within two months of incorporation.
The Section 128 of the Companies Act makes it necessary for all business owners to maintain their accounts books, which shall be audited on a regular basis.
What are the local registrations that a company should obtain before starting operations?
Besides receiving the company incorporation certificate, the business owners also need to apply for the GSTIN (GST Identification Number), Shops & Establishment License (what we know as the trade licence), tax registration, TAN (Tax deduction account number), PAN (official permanent account number for the company), utilities permit from local municipal corporations, ESI (Employees State Insurance) Registration, EPF (Employees Provident Fund Registration), etc. Therefore, experts recommend that business owners hire an expert to help them apply for the necessary licences.
How long does it take to complete online company registration?
In India, online company registration usually takes around 10-15 days to complete. The process involves obtaining a Digital Signature Certificate (DSC) and Director Identification Number (DIN), filing the required documents, and obtaining the Certificate of Incorporation from the Registrar of Companies (ROC). The time taken can be reduced by ensuring that all required documents are complete, accurate, and submitted in the proper format. Expedited registration services are also available for an additional fee.