Private Limited Company
Benefits
- Fewer legal formalities than LLP.
- Associated with the GST and income tax departments.
- Full control over the business for the sole proprietor.
- No separate business tax filings.
- Easy to disassemble.
Offers and discounts
Save 18% with GST Registration
Get Whatsapp Support
Get Free Consultation
Private Limited Company
Quick Steps for a Pvt Ltd Company Registration in India
7 Steps for the Pvt Ltd Company Registration
Step 1: Obtain a DSC
Class 3 DSC is the most secure and mandatory Digital Signature Certificate (DSC). However, you should be physically present before the certifying authority while applying for it. This certificate is valid for one, two, or three years. Similarly, all witnesses of the MoA and AoA should possess it.
Step 2: Obtain a DIN
No matter how many companies a director belongs to, he can have only one Director Identification Number (DIN). A person who wants to be a director of an already existing private limited company in India can fill the Form DIR 3. A maximum of three directors can fill the SPICe+ form to get a DIN during the incorporation of the company, and more directors can be added later.
Step 3: Obtain a Name Approval
You may reserve a name, that follows the naming guidelines, using the SPICe+ Part A form on the MCA portal. If the name gets approved, fill out the Part B form within 20 days.
Step 4: Get Your Company Incorporated
The Part B form helps you incorporate your company. Here, you must fill out your private limited company’s registered office address, application for PAN and TAN, stamp duty, and other required documents.
Step 5: Draft MoA and AoA
Draft a Memorandum of Association (MoA), which describes the objective of establishing the company, and Articles of Association (AoA), which mentions the internal regulations of the private limited company in India.
Step 6: Apply for PAN and TAN
You may apply for the PAN and TAN via the SPICe+ form, and your request will be handled by the Income Tax Department.
Step 7: Track the Certificate of Incorporation
After the successful private limited company registration, your company will get a PAN, TAN, Company Identification Number (CIN), and a Certificate of Incorporation (COI).
Documents Required For Pvt Ltd Company Registration
- Registered address proof (of the company) such as ownership deed or rental agreement.
- Identity proof and address proof of the registered partners.
- Copies of utility bills received within 2 months.
- MoA and AoA.
- A trademark application copy and trademark registration certificate are required if the name of the company is inspired by a registered trademark.
- NOC from the landlord if the company stands on rented property.
- DSC and DIN.
Types of Private Limited Companies
Step 1: Limited by Guarantee
The liability of the members is limited to a fixed amount that they agree to contribute if the company shuts down.
Step 2: Limited by Shares
It is the most common type. Here, the liability of the shareholders is limited to the face value of the shares they hold.
Step 3: Unlimited Company
Owners’ personal assets cannot be protected in this structure, similar to a sole proprietorship.
Private Limited Company Registration Fees & Costs
Are You Tired of the Tedious Pvt Ltd Company Registration? Relax! We Make it Simple for You.
| ADVANTAGES | DISADVANTAGES |
|---|---|
|
As a shareholder, you are only liable to the extent you have contributed. |
A rigorous registration process and a requirement of various documents. |
|
The Pvt. Ltd. company is a separate legal entity and has its own debts and assets. |
Costly and complex dissolution process of the company. |
|
The company won’t shut down in the absence of any member. |
Not suitable for bootstrapped and small companies due to penalties and operating costs. |
|
The Pvt. Ltd. company is eligible for certain tax benefits, deductions and exemptions. |
Slower operations due to multiple decision makers. |
|
Fundraising and foreign investments are easier because the company is registered with the ROC and MCA. |
No centralised control due to a minimum of 2 directors and shareholders. |