Company Registration in India
Private Limited Company Registration in India
In India, there are many options available for starting a business. For instance, Indian Residents and business people can open partnerships or proprietorships or LLPs or Limited Companies (Private Limited Company and Public Limited Company).
Similarly, foreign companies and residents can establish either branch office or liaison office or project office or Subsidiary company or Joint Ventures. Subsidiary companies and Joint Ventures can again be either Private Limited companies or Public Limited Companies.
All the entities have their pros and cons, and the selection of entity normally depends upon the nature of the business activity and plans of businesses.
However, whether it is Indian Resident or foreign companies which wants to set up business in India, Private Limited Company registration is one of the most popular and tax-efficient legal structures for those who want to do a full-scale business operation in India.
Advantages of Private Limited Company over other forms of entities like Partnership and Proprietorship:
- Unlike Partnership and proprietorship, it has a separate legal identity from its partners or proprietors/owners.
- In the case of a Private Limited Company, the shareholders have limited liability whereas, in the case of proprietorship and Partnership, the owners/partners have unlimited liability.
- It is a preferable form of entity for startup registration.
- Private Limited Company has a brand and reputation as compare with partnership and proprietorship firms.
- This is most suitable for accepting funding from angel investors, venture capitalists, and private equity investors.
- It is the most suitable form of entity for foreign companies planning to set up business in India in a subsidiary company. When foreign companies hold shares in an Indian private limited company, the Indian company becomes a Subsidiary of the parent company.
- This sort of company has more authenticity in the eyes of outside users like banks and financial institutions since it is subject to audits.
- It is easier in a private limited company to add or remove directors and in a legal manner compared to other entities.
- Private company has a tax advantage as it is taxable at 25% as compared to LLPs and Partnerships, which are taxed at 30%.
EZYBIZ INDIA provides a one window solution for company registration in Delhi and company registration all over India through its expert team of Chartered Accountants and Company Secretaries.
Further, we also assist in all post incorporation compliance like Tax and Regulatory Filing, Accounting, Payroll, Audit etc. Our advantages are as under:
- Dedicated CA/CS for each Client.
- 100% Online Process.
- Free Initial Consultation.
- Quick Response Time.
- One Window Solution for all Pre-registration and post-registration compliance.
- Complete guidance and handholding to MNCs, Foreign citizens and NRIs.
- Nominee Indian directors and shareholders may be provided on a need basis.
- Temporary Indian office space may be provided on a need basis.
- The facility of Manpower recruitment, market research on a need basis.
- Existing clients from Italy, UK, Taiwan, Netherland, USA, China and growing.
Procedure for Private Limited Company Registration
- A minimum of 2 shareholders and two directors are required for company registration in India.
- At least one director shall be an Indian citizen and Indian Resident.
- There should be local address proof for showing the registered address of the company.
- There is no limit on minimum capital required for private limited company registration. It can be started with Rs 50,000 or even less amount.
- The first step is the preparation of the Digital signature certificate (DSC) of all the directors.
- The second step is the reservation of the name of the proposed company. The company’s name needs to be approved by ROC by providing 2-3 proposed names.
- After company name approval is completed, the third step is to prepare the charter documents, i.e., Memorandum of Association and Article of Association. Also, the Director Identification number needs to be applied. Simultaneously, other registrations need to be applied like PAN, TAN, ESI, PF.
- Name of the proposed banker with whom the company’s account needs to be opened needs to be provided.
- Finally, the company will be incorporated, and a Certificate of Incorporation will be issued containing the company’s CIN, PAN, TAN.
Other Things to be kept in mind after Private Limited company registration
Once a company is registered, the following other compliance needs to be done by every company:
- For selling goods or providing services, GST registration needs to be taken.
- For doing export and import business, Import Export Code (IEC) need to be taken.
- The company’s first board meeting is to be held, and auditors need to be appointed within 30 days of incorporation.
- Certificate of commencement of business needs to be applied with MCA within 180 days of incorporation.
- In the case of subsidiary companies, once share subscription money is received in the Indian bank account of the company from foreign shareholders, RBI and ROC compliance need to be done. RBI needs to be intimated about the receipt of share subscription money by filing relevant forms. Also, shares allotment need to be done and intimated to ROC.
- Tax and Regulatory compliances need to be done like
- Monthly/Quarterly GST returns Filing- 16 returns or 24 returns per year.
- Quarterly TDS returns Filing- 8 returns per year.
- Preparing BS, PL,
- Conducting statutory audits,
- Conducting Tax audits,
- A transfer pricing audit and Transfer Pricing study need to be conducted in an international transaction between an Indian subsidiary company and a parent company. Also, three returns need to be filed before Income Tax Authorities.
- Filing income tax returns, and
- Secretarial compliance before ROC and Filing of ROC returns- 5 to 6 returns in one year.
- In the case of foreign funding, Filing returns with RBI.
Compliances above need to be done by every company every year, even if the company has NIL sales or profits. Failure to do so will result in heavy penalties and interest.
Accordingly, in a private limited company, at least 35-40 different returns need to be filed before regulatory authorities every year. Further, accounting and audit need to be done.
Therefore, compliance cost in the case of a private limited company is high. However, since it has many advantages and is subject to audits, it has reliability and authenticity in the eyes of bankers, investors and other stakeholders. Also, it has a brand and reputation, which makes it the most popular form of business entity in India.
We provide complete handholding in Company Registration in Delhi and Company registration in India. Also, provide one window solution for post-registration compliance like Accounting, Income Tax Return filing, GST Return Filing, ROC/RBI return Filing, Payroll, Audits etc.
Inclusions in this package
Digital Signatures Certificates (DSC) of 2 Directors
Director Identification Nos.(DIN) of 2 Directors
Company name approval certificate
25 copies of MOA& AOA
Company Stamp, PAN & TAN Registration
Free Filing of Auditor Addition Form ADT-1
Assistance in opening current account in Bank
Time Involved in the Process
- Approx. 08-10 working days till getting Incorporation certificate
- Approx. 8 working days in getting PAN/TAN
- Approx. 3 working days in opening bank account
Documents Required for Private Limited Company Registration
- Rs 100,000
- Fees to be paid to ROC depends upon amount of authorized capital. In case authorized capital is less and Private Limited Company need more money in the business, it has to increase authorized share capital.
- Authorized capital signifies maximum capital which can be raised by company. Paid up capital signifies how many shares have been actually held by shareholders and paid for same. Paid up capital can be less than authorized share capital
- You need to apply for PAN and TAN no. of the company when its registered, thereafter open a current account in bank and deposit paid up share capital money.In case you are into trading business India, you would also require VAT/Sales Tax registration i.e TIN no. [Upto Rs 25 lakh local sales in Delhi, not mandatorily required to get VAT registration. However, in case of interstate sale and purchase, there is no exemption]
- In case you are into service industry providing services, you would also require Service Tax registration. [Upto Rs 10 lakh annual sales, not mandatorily required to get Service tax registration.]
- In case you want to do import export, you would also require Import Export License called as IEC code. Some other licenses are required depending upon type of industry and nature of work
- Normally, a pvt ltd company has to do following compliances:
- Accounting or Book keeping [On daily basis]
- VAT/CST return to be filed online quarterly [In case of trading concern if TIN no. is taken]
- Service tax return to be filed online half yearly [In case of service providers if service tax no. is taken]
- Sales tax/VAT, Service tax, TDS, Excise duty has to be deposited monthly
- TDS returns of Salary paid and vendor payment is to be filed quarterly, if applicable
- Excise return needs to be filed monthly/quarterly [In case registration taken]
- Financial audit has to be got done by CA and audit report needs to be collected
- Tax audit has to be got done by CA and audit report needs to be collected.
- Balance sheet and Profit and Loss account and other financials need to be prepared and maintained.
- Minimum 4 Board meetings need to be held in one year
- Minimum 1 AGM needs to be held in a year
- Other secretarial compliances like maintaining minute book, registers, sending notices etc
- Income tax return of pvt ltd co. needs to be filed online annually before 30th September
- ROC returns (approx. 4 in nos.) needs to be filed annually within 30 and 60 days of AGM
- Other need based compliances.
- Advance tax needs to be paid periodically
- EZYBIZ India provides one window solution to all the aforesaid compliance. No need to hire separate Chartered Accountant or Company Secretaries as well as Accountant for aforesaid work. We are your trusted partners for company registration in Delhi as well as post incorporation taxation and regulatory compliance
Yes, you need to file NIL returns, prepare balance sheet and profit and loss account and also get auditor’s certificate as well as secretarial compliance.