Private limited registration company in India is the oldest legal entity approved by the Ministry of Corporate Affairs. Do you know many big industries or companies were first private limited companies? These days the startup culture is growing like mushrooms. A private limited company is like a startup that started with a small-scale budget and employees. Private limited companies are owned by non-governmental organizations or a small number of shareholders or members of a company. Its shares don't enter the platform of trading in public. The Ministry of Corporate Affairs governs Private limited registration company in India, The Companies Act, 2013 and the Companies Incorporation Rules, 2014. This Act allows the union shareholders and other companies with different levels of liabilities. Isn't it reliable to invest in an enterprise that holds a registration? If your company holds a private limited company registration, you can benefit from many advantages, one of which is fundraising for your company from investors. The same goes for banks and financial institutions; they give loans or debts to a company with legal registration. Want to raise equity funds for your business entity? Visit Indian Salahkar, India's leading business consultancy firm, to get detailed guidance on your business registration processes at a competitive price. Suppose you want to focus on your company's future dealings with third parties. In that case, you must be aware that large businesses with supplier selection criteria always eye on registered businesses rather than unregistered ones. Make your company's brand image shine and create a dynamic change with your institution's growth, value and ethics. A company must hold preliminary documents before applying for company registration like The Memorandum of Association (MOA) and Articles of Association (AOA). Along with the company incorporation form, the MOA & AOA should be submitted to the Registrar of the Companies (ROC). Both are the pillar of the construction of a company as they focus on and include the scope of work, objectives,rules and internal management. It must be crafted with precision and clarity.
The procedure of Private Limited Company Registration in India:
The registration process for private company registration has been modified by the Ministry of Corporate Affairs. The previous SPICe (Simplified Proforma for Incorporating a Company Electronically) form has been updated to a new web form called SPICe+ which is an easier process to file now. SPICe+ is divided into two parts as described below:
Part A - The Reservation of Company Name:
Part B - File to avail services as follows:
Eligibility of Directors:
Photograph of Directors
PAN card of Directors
Aadhar Card/Voter identity card of directors
Copy of electricity bill/landline bill, water bill - Not older than two months.
Rent agreement (for rented premises)
Identity proof of ownership of the place of business/ Registered office space in India
There should be a minimum of two members to act as shareholders.
Of the above 2 directors at least one should be an Indian Resident.
6 Names of the Proposed company ( Arranged in preferential order)
DIN is a unique Director Identification Number issued by the Central Government to the person who wants to become a Director or an existing Director of a company.
It is an 8-digit unique identification number that occupies lifetime validity. DIN helps in maintaining the database of the details of directors in a company.
One can be the director of two or more companies but is only assigned one specific Director Identification Number.
Advantages of Private Limited Company Registration:
The most significant advantage of your company registration is that it secures the company name
It entitles a separate legal entity.
It accomplishes a limited liability.
It establishes networking for fundraising from angel investors or VCs, or family.
It is free and easy to transfer shares.
It formulates the processes of financial credibility and FDI is easily allowed.
It gives you ownership of property. .
It becomes simple to enlist, manage and run the company.
It is essential to file Annual Accounts and Returns once a year for the private limited companies to provide details of the shareholders and directors to the Registrar of Companies (ROC).
In the process of the Annual Filing, the following forms need to be submitted to the ROC:
Form MGT-7 (Annual Return):
Every Private Limited Company is supposed to file its Annual Return within 60 days after the commencement of the Annual General Meeting. One can file an annual report between 1st April to 31st March.
Form AOC-4 (Financial Statements):
Balance Sheet along with a statement of Profit and Loss Account and Director Report of every private limited company need to be filed in this form within 30 days of holding of Annual General Meeting. The planning and execution to start a business or private company are not easy and it also comes with great responsibilities. To make your ride smooth in the journey of entrepreneurship, Indian Salahkar is extending a helping hand to initiate the first step of your dream project. Scroll down our website and drop your queries, our expert team will reach out to you instantly and provide you with a hassle-free registration process follow-up. Avail of the company registration services at the best price in India.