One of the most highly recommended methods for starting a business in India is to establish a private limited company, which provides its shareholders with limited liability while imposing certain ownership restrictions. When it is LLP, the partners will manage it. On the other hand, a private limited company allows for directors and shareholders to be separate entities.
As your dependable legal advisor, Vakilsearch offers a cost-efficient service for registering your company in India. We handle all legal procedures and ensure compliance with the regulations set forth by the Ministry of Corporate Affairs (MCA). Upon successful completion of the pvt company registration process, we provide you with an Incorporation certificate (CoI), as well as PAN and TAN documents. With these in hand, you can easily establish a current bank account and commence your business operations.
There are numerous advantages to registering a company. By doing so, you enhance the credibility of your business, which can lead to increased consumer trust. Additionally, company registration can provide various benefits that can help your business to grow and succeed.
As defined by the Companies Act, 2013 one must guarantee to meet the checklist requirements without fail for Private Limited Company Registration in India.
A private limited company must have at least two directors, with a maximum of fifteen. A minimum of one of the company's directors must be a resident of India.
The name of your pvt ltd company must be unique. The suggested name should not match with any existing companies or trademarks in India.
There is no minimum capital amount for a Pvt ltd company. A Pvt limited company should have an authorised capital of at least ₹1 lakh.
The registered office of a pvt ltd company does not have to be a commercial space. Even a rented home can be the registered office, so long as an NOC is obtained from the landlord.
Startups in India can gain an edge over non-registered competitors by registering their company. While the process of registration is getting complicated and involves numerous compliance requirements, need not worry as Vakilsearch is here to assist you every step of the way. Our team of professionals can provide comprehensive support for pvt company registration.
The first step of company registration involves the registration of your desired name. To reserve a name for your company, you must first submit a request for name approval to the Ministry of Corporate Affairs (MCA). You may include one or two potential names, along with a description of your business objectives, in your application for name approval. If your first choice is not approved, you may submit one or two additional names for consideration. Typically, the MCA approves name requests within five business days. Our team of experts can help you choose the ideal name for your company and guide you through the government registration process.
The MCA in India does not recognize traditional signatures. Instead, all filings with the MCA must include a digital signature certified by an Indian certification authority. Thus, it is mandatory for directors to have digital signatures prior to the company's incorporation.
Vakilsearch will obtain a digital signature certificate (DSC) for the directors through a recognized certification entity. To obtain a digital signature, directors must provide a copy of their identification documents and successfully complete a video KYC process. If a director is a foreign national, the nearest embassy should apostille their passport and other documents for company registration.
After obtaining the necessary digital signatures, submit the incorporation application in SPICe form along with all relevant attachments to the MCA. The application for incorporation includes the company's Memorandum of Association (MOA) and Articles of Association (AOA). If the MCA deems the incorporation application to be complete and acceptable, the company can get the Incorporation certificate and PAN. Typically, the MCA approves all incorporation applications within five business days.
After the process of company registration in India, it is necessary to adhere to various compliance regulations in order to avoid potential fines and legal repercussions. Some of the key post-registration requirements include:
Auditor Appointment: Within 30 days of incorporation, every Indian company must appoint a practising, certified, and registered Chartered Accountant(CA).
Director DIN KYC: Every year, individuals who possess a Director Identification Number (DIN) should undergo a DIN KYC process. During the company incorporation process, the company can get the DIN. This helps to verify the phone number and email address on file with the MCA.
Commencement of Business: The shareholders of the company must deposit the subscription amount specified in the MOA within 180 days of incorporation, and the company must create a bank current account. Therefore, to receive a business incorporation certificate, the shareholders of a company established with a paid-up capital of ₹1 lakh must deposit ₹1 lakh into the company's bank account. They should also file a copy of the bank statement with the MCA.
MCA Annual Filings: Every financial year, the MCA must get a copy of the financial statements from each company registered in India. A corporation that incorporates between January and March may elect to include the first MCA annual return in the annual filing for the following fiscal year. Forms MGT-7 and AOC-4 are the components of the MCA yearly return. The Directors and a working professional must digitally sign both of these documents.
Income Tax Filing: Every financial year, businesses should file an income tax return using form ITR-6. The business should file the income tax before the deadline for each financial year, irrespective of the date of incorporation. The company's income tax return must be digitally signed using the director's digital signature.
Before incorporating a firm, it must meet a specific set of conditions. The following are such conditions:
As mentioned earlier, at least two directors and no more than 200 members are necessary for legal Private Limited Company Registration in india. This is a mandatory requirement as per the Companies Act of 2013. The Directors should honor the following conditions:
When selecting a name for a private limited company, there are two factors must be into consideration:
Upon completion of the registration process, the company should give the permanent address of the business's registered office to the company registrar. The registered office is the primary location where business takes place and stores all documentation pertaining to the company.
To verify the authenticity of electronically submitted documents, every business must obtain a DSC. Furthermore, the business needs credentials from such professionals as secretaries, chartered accountants, and cost accountants that engage them for various operations.
| Company type | Ideal for | Tax advantages | Legal compliances |
|---|---|---|---|
| Limited Liability Partnership | Enterprises that focus on services or require little investment | Advantage on depreciation | Company tax returns to be pointed ROC returns to be filed |
| One Person Company | Sole proprietors peeking to limit their liability | Tax holiday for first 3 years under Startup India Higher advantages on depreciation No tax on compensation distribution | Business recoveries to be filed Limited ROC compliance |
| Private Limited Company | Companies that have a high turnover | Tax holiday for first 3 years under Startup India Higher advantages on depreciation | Business tax returns to be filed ROC returns to be filed An audit is mandatory |
| Public Limited Company | Companies with a an increased turnover | Tax exemptions under | Business tax returns to be filed. Compulsory Audits |
The MCA requires proper identity and address proof for private limited company registration in India. The following documents are the requirements for registering a company in India:
Note: Your registered office need not be a commercial space; it can be your residence too.
Vakilsearch offers a completely online private limited company registration process, allowing you to register your entity without leaving the comfort of your home. Our experts can complete the entire incorporation process within 14 days.
Vakilsearch company registration package includes:
By following these steps, you can begin the process of forming your own private limited company. It is advisable to seek advice from professionals to make informed decisions and ensure seamless growth.
An addition to, deletion from, or a change of existing provisions of the articles of incorporation of a domestic corporation.
The governing body of a corporation who is elected by shareholders. The directors are responsible for selecting the officers and the supervision and general control of the corporation.
The title of the document filed in many states to create a corporation. Also known as the articles of incorporation.
The DSC (Digital Signature Certificate) is an instrument issued by certifying authorities by which you can sign electronic documents. As all documents needed are electronic.
Director Identification Number
The statutory procedure that terminates the existence of a domestic corporation.
The act of creating or organizing a corporation under the laws of a specific jurisdiction.
An artificial entity created under and governed by the laws of the jurisdiction in which it was formed. Limited liability companies are generally able to provide the limited personal liability of corporations and the pass-through taxation of partnerships.
The protection generally afforded a corporate shareholder, limited partner or a member of a limited liability company from the debts of and claims against the company.
A procedure that allows a company to obtain exclusive use of a corporate name for a specified period of time.
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