A business entity registered with the Ministry of Corporate Affairs under companies act. It is the most popular business structure in India as it has many advantages and easy to operate. It is the best option to start the business as the owner and directors of the company has limited liability, and they are not personally liable to any debt and losses owned by the company as the company and management of the company is different from each other. Any business activity can start under the private limited company format, but it should be a legal activity.
Minimum 2 persons are required to start a private limited company, the person can be anyone whether an individual person or any body corporate like Limited Liability Partnership, One Person Company or any other company, etc. After getting the certificate of incorporation there are certain things to do like auditor appointment, bank account opening, filing of commencement of business, etc. but the annual compliance has to be done every year within the specified time limit it includes ITR filing, KYC of director, ROC filing, preparation of balance sheet, profit & loss a/c, etc. As per the new rules of registration, it gets effortless to register the company by following the simple company registration process.
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Private Limited Company
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One Person Company
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Limited Liability Partnership
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Partnership Firm
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Proprietorship Firm
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Comparison
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Passport Size Photograph
02
PAN Card
03
Registered Office Proof Copy of Electricity Bill / Water Bill / Gass Bill
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Copy of Aadhaar Card
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Address Proof
06
No Objection Certificate
Limited Liability
Helpful in Startup India Registration
Easy Transferable Ownership
Selling the Business
Perpetual Succession
Raising Money
As a juristic legal person, a company can sue in its name and be sued by others.
Separate Property
As business Corporation value will be based on the business, not the owner, therefore making it easier to sell the company.
Better Governed
As a juristic legal person, a company can sue in its name and be sued by others.
Taxation
As business Corporation value will be based on the business, not the owner, therefore making it easier to sell the company.
Capacity To Sue
As a juristic legal person, a company can sue in its name and be sued by others.
2 board meetings in a calendar year with 1/3rd of the total number of directors or a minimum of 2 directors. The minutes are to be recorded.
- Fill the form and make the required payment for the application.
- Post-Payment the experts will call back and proceed accordingly.
- A draft regarding how to register a pvt ltd company will be made.
- The DIN Number and the DSC will be applied for.
- AOA and MOA are the next document that needs to be submitted for approval.
- All documents are then sent to the Registrar Of Companies (ROC) of the concerned state for registration and incorporation.
- Once all the process is done it is just a matter of time before one gets to register a company.
- After the private limited company registration, the document is then sent to the person.
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The Ministry of corporate affairs (MCA), Government of India reduced the fee for registering a private limited company, but you cannot register your business for free. The charges are minimal but they are not free.
The documents that are required for private company registration are-
Owner/Director’s Documents.:
- Directors PAN
- Directors ID proofs (Aadhar Card, Pan Card, Passports, Driving License)
- Directors Address proof
- Latest One Month Savings Account Statement
- Latest mobile phone bill or electricity bill.
- Passport size photograph
- E-mail ids
- If, Foreign Director International passport mandatory.
Companies Documents: - Registered office address
- Company PAN Card.
- Lease or Leave and licence agreement if the land is rented or taken as leased.
- NOC from the landlord.
The One Person Company (OPC) may be transformed right into a Private Limited Company (PLC) as per Section 18 of the Companies Act, 2013 and the provisions of Companies (Incorporation) Rules of 2014. The conversion of OPC right into a private limited company will now no longer have an effect on the prevailing debts, liabilities, duties or contracts of the OPC. The necessities which are important for the conversion of OPC are changes withinside the Memorandum of Association (MOA) and Articles of Association (AOA) of the OPC (As consistent with the provisions supplied in phase 18 of the Companies Act, 2013, alongside phase 122 of the Act). For incorporating a personal constrained organisation there desires to be no less than contributors and directors. To follow for conversion of OPC to a personally constrained organisation, you want to fill the shape INC-6, to the Ministry of Corporate Affairs, Govt. of India.
The registration of a company is a scrutinizing process and thus there are few companies that get rejected under certain rules. Some of the rules are:
- The name does not align with the principles or objectives of the company.
- A translated name of a reputed brand name.
- Phonetic resemblance to an existing company
- Includes words that are offensive to any community.
These are some of the major points out of many other points of rejection.
Digital Signature is a digital code that is attached to the documents to signify equal authority as of the handwritten signature on the document. It is the proof for the authenticity of the document by the owner of the company.
Director Identification Number is an 8-digit identification number that is unique. It is allotted to every individual wanting to become a director or is already a director by the central government. The DIN Once allotted has a lifetime validity. The DIN helps the government keep track of all the directors. It is used on all official documents that requires the signature of the Director.
There are various types of company registrations that are available in India that one can register for: They are:
- One Person Company (OPC)
- Private Limited Company
- Public Limited Company
- Limited Liability Partnership (LLP)
- Non-Profit Organizations
Authorized Capital and Paid-up Capital? Answer: The Capita of a company is the money given by the shareholders to conduct the business activities. It is mandatory under the Capital clause of the Memorandum of Association (MOA). The main differences between the authorized capital and the paid-up capital of a company are described below.Authorized Capital
The Authorized Capital is the maximum amount that a company can legally authorize for the issue to the shareholders.
The amount should be more than that of the paid-up share.
Authorized capital can be augmented anytime with the prior permission of the shareholders.
Paid-up Capital
The Paid-up Capital is the amount of money actually amount paid by the shareholders.
Under the Companies Amendment Act of 2015, the requirement of having a minimum prescribed paid-up share capital has been removed.
For the registration of a company various documents are required to be submitted. The required documents are:
- Directors & Shareholders Documents
- Passport size photograph
- PAN Card Copy (mandatory)
- Address Proof (Any one of the below)
- Passport
- Aadhar Card
- Driving License
- Voter ID
- Residential Proof (Any one of the below)
- Bank Statement
- Electricity Bill
- Telephone Bill
- Mobile Bill
- Registered Office Address Proof Documents
- Office Property Ownership/Rental documents
- Address Proof of Registered Office Premises
Providing these documents will enable a smoother registration process.
Class-1 DSC: This class of DSCs is issued to private subscribers and individuals to help them in securing their email communications, and authentication of their individual identity.
Class-2 DSC: These DSCs are issued to company directors and other signatory authorities of a company/firm/organization.
Class-3 DSC: This class of DSC is useful for participation in e-Tenders and e-Auctions, conducted anywhere in entire India.
MOA stands for Memorandum of Association whereas AOA stands for Articles of Association. Both the documents are important sources of information for shareholders and other stakeholders of a Company.MOA is used in providing information regarding:
- Name
- Aims
- Objectives
- registered office address
- the clause regarding limited liability
- minimum paid-up capital
- Share capital of the Company.
It helps understand the relationship of a Company with the others.
AOAs on the other hand helps provide the necessary documents when the company is incorporated with the Registrar of Companies (ROC). AOA and MOA in conjunction are called the COnstitution of the COmpany.