Private Limited Company Registration
One of the most legal structures of any business is forming a Private Limited company, and this type of business must be selected by someone looking to build a scalable business. Any business organization, be it a startup, look for registration because it helps them in raising funds easily. Also, it limits the liabilities of a shareholder and enables the shareholders to offer employee stock options for attracting talent. These entities need to hold board meetings and also file the annual returns with the ministry of corporate Affairs. It is generally viewed that a business with a Private Limited Company Registration is more credible than Limited Liability partnership, one person company (OPC) or General Partnership. At EZYBIZ INDIA, we will help you in understanding all the steps necessary for the complete company registration process; and the best part is you can register online at the comfort of your home. It is important to get your company registration to avoid the legal issues no matter what field of business your company is in.
Important Factors to Consider in Private Limited Company Registration
- Any person can be the director of the company, be it an Indian or a foreigner
- One of the directors needs to stay in India for at least 182 days, meaning he/she should be a resident of India
- A private Ltd organization can have 50 shareholders, while a Public Ltd company should have a minimum paid-up capital of Rs 5 Lakh or higher.
- A minimum capital of Rs 1, 00,000 is necessary for a Private Limited Company. An Indian can be the shareholder of a foreign company, however, a foreigner needs to comply with the foreign exchange laws as defined in India
- In one year, your company needs to have a minimum of 4 meetings of the Board of Directors and 1 shareholders meeting
- On the authorized proposal of the company, you have to pay the registration fee and stamp duty
Steps for a Private Limited Company Registration in India
Step 1: Acquiring DSC or Digital Signature Certificate
The first step is to apply for the Digital Signature Certificate or the DSC for your new company registration in India. To make sure that the electronic documents uploaded to your company by your clients or even your own company document safe, it is necessary to get the DSC. This is according to The Information Act of 2000, which demands valid digital signature on all documents submitted. This is the safest way one can deposit their documents.
- Remember, the digital certificate must be attained by such agencies that are appointed by the Controller of Certification Agencies (CCA). You should never use the DSC by any other agency that is not appointed by the CCA.
- There are different classes of DSC; and for the MCA fillings, you are going to need DSC class II. It usually takes 2-3 days for getting the DSC. The nominal charge for 2-year class II DSC is Rs 1000-1500 in Delhi.
- You will need to provide few documents and details. Our representatives at EZYBIZ INDIA will fill up the form and submit it for online company registration on your behalf.
Step 2: Acquiring the DIN or Director Identification Number
- The second step to be followed in the process of company registration in India is to acquire the Director Identification Number (DIN). Every director in an organization needs to have a proper identification number. Therefore, acquiring the Director Identification Number to be compulsory. Also, DIN is valid for lifetime and once any Director has obtained DIN, He is not required to apply for DIN again even if He is a director in any other company. To get the DIN, you need to fill up the e-form DIN-1. The DIN form is available on the official website of the MCA or the Ministry of Corporate Affairs.
- We at EZYBIZ INDIA will upload the DIN-1 form for you by clicking on the e-Form upload button on the MCA website. You need to pay the application fees.
- Further, in case there are any changes within the DIN, or in case it needs to be updated, for instance like personal details, change of address, etc., then the director can intimate the changes by submitting the DIN-4 form.
Step 3: Applying for Company Name Registration
Now you have to apply for a company name to register it. This is the third step for completing the registration process of a company. This not only includes the registration of a company name, it also incorporates the registration of the company at a genuine address/ notice of physical location of a company, and also the notice of appointment of company managers, directors, and the company secretary. Also, the qualification of shares and the pay will be clearly depicted here. There are different forms we are going to fill up for you in this step for online company registration in India. Form 1A: This is the application form which is present for the availability of a new company name or changing the existing name. When we apply for a new company name, you will get four suggestions from the MCA to pick one that suits you. You will have to choose from those names and then fill the Form 1A. While suggesting new names and applying for name approval, we have to follow the naming guidelines prescribed by the MCA. Normally, similar name to existing company and vague names are not approved. Further, the name of the proposed company should also provide a glimpse of the type of business which will be undertaken by the proposed company. Further, in case any name applied by us is rejected by the MCA, then we again have one more chance to provide fresh names without any additional fees. However, if our second chance is also rejected then a fresh application can be filed subject to payment of fees again.
Step 4: Applying for Incorporation of company
In a final step following documents and forms are submitted online to MCA for requesting MCA to issue a final certificate of registration: Form DIR2 This is consent form to be signed by each Director who proved their consent for appointment as Director in the proposed company. Form INC 8 This is declaration form issue by any professional like CA, CS, and Lawyer etc declaring that all the requirements of Companies Act, 2013. Form INC 9 This is again a declaration to be filed by all the Directors who are subscribers to MOA and AOA that:
- He has not been held guilty in past 5 years relating to any offense committed in connection with any company formation.
- He has not been held guilty for any fraud relating to any company during last 5 years and
- Whatever documents and information He has filed before ROC, he believes them to be complete and true.
FORM INC 10 This is a Form for verification of signature of subscribers which needs to be signed by all the subscribers to MOA and AOA MOA and AOA Once we submit these forms, we wait for the application to be approved by the MCA, which will be notified by a confirmation email. In the case of any objections with your Pvt Ltd registration, the ROC will send you reasons for objection and give time to rectify the objection and resubmit.
Step 5: Apply for PAN, TAN in Name of New Company
- Get the Incorporation Certificate of a registering Company then apply for the PAN and TAN of the new company.
Step 6: Open Current Account in Bank
- We also ensure that the whole team is included in the process and that no one is left out during the turnaround. The most crucial part is ensuring some degree of financial stability during the turnaround.
Step 7: File Intimation to ROC about Appointment of First Auditors of Company
- This is the most worrying part for most clients going through or needing a turnaround; it means that incoming cash flows will change completely. We help ease these issues through fantastic financial projections and a realistic view of what can be accomplished.
Step 8: Take other Registrations like VAT(TIN) or Service Tax Registration etc
- Creating a list of potential qualified prospects for your service or product can be daunting when you’re beginning your business. However, this needs to be considered as a follow up on your Target Market Analysis so you can hit the ground running.
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 Company Registration Consultants in Delhi for aforesaid work. We also send timely reminders to clients about due dates.
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.