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.

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