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Benefits and Process of Private Limited Registration

Private Limited Registration

The Benefits & Process of Private Limited Registration for Your Business

Do you want to start your new business? In India, the most common structure for a business is a Private Limited Company Registration, preferred by most of the entrepreneurs. But the most crucial step to start a business is the Pvt Ltd Registration. Now, the company registration process has become very easy after the government announced the online process of registration. The registration of Private Limited Company has been governed under the Companies Act 2013 & Companies Incorporation Rules 2014. In this blog, we will discuss the benefits & process of the registration of the private limited company. 

Features of Private Limited Registration

Before jumping for the registration, you should know about the various features of registration of a private limited company, which are as given below-

  • There is a requirement of a minimum of 2 directors, and at least 1 director should be an Indian Resident.
  • For the registration of private limited company there is no need of minimum capital
  • You can register your company at the residential place also.
  • The process of private limited registration is 100% online.
  • For this, the age of the applicant must be 18 years & above
  • It would be best if you chose a unique name for your company.
  • To register the company, the number of directors can be 2 to 15.
  • Number of shareholders can be up to 200.

Benefits of Private Limited Registration

There are many advantages of private limited registration for your business. The benefits of private company registration are given below-

  • Limited Liability

In a private limited registration, the liability of the shareholders has been limited to the amount invested by them in the company. Their personal assets are completely protected in case of business debts & losses.

  • Separate Legal Entity

A private limited company has its own legal identity, separated from the shareholders, providing legal protection to the personal assets of the shareholders in case of business liabilities.

  • Credibility & Trust

The registration of the private limited company helps you in enhancing the credibility & trust in front of the customers, suppliers, and investors.

  • Tax Rates

In comparison to the other business structures, private limited companies can enjoy lower tax rates, including various subsidies & exemptions.

  • Easy transfer of ownership

You can transfer the ownership of private limited company easily by selling or transferring shares.

  • Easy Fund Raising

For a private limited company, it is easy to raise funds in comparison to the sole proprietorship or partnership firm, as this company has been preferred by banks & financial institutions.

  • Continuous existence

The life of a private limited company does not depend on the life of its owners. Hence, the life of the company will not end even after the death or inability of any member of the company.

  • No need to appoint an audit committee

For a private limited company, there is no mandatory need to appoint an audit committee results in less cost of compliance.

  • Dual relationship

The directors & shareholders of the private limited company can have dual roles in the company that help in effective management & control.

  • Power to Sue

After the private limited registration, the company can sue the third party and take legal action against them regarding company name change, mergers, or demergers.

These are the benefits of private limited company due to which the most of the entrepreneurs want a private limited registration to start their business. 

Process of Private Limited Registration

The company formation process involves a number of steps, which are as given below-

Step 1: Planning & Documentation

Before going for the registration, you should make sure that you have all the required documents.

Step 2: Apply for DSC 

As the company formation process is 100% online, hence all the directors of the company must need a DSC i.e. Digital Signature Certificate. It will be obtained within 24 hours & includes the 3 simple verifications, which are Document Verification, Video Verification and Phone Verification. 

Step 3: Name Approval

After that, you should apply for the name approval via SPICe RUN. You should remember that the name of your company must be unique and does not identical to any other existing name. You can check the availability of the name on the MCA portal.

Step 4: Filing the SPICe Form

After the name approval you should fill the SPICe Form for the company registration. This form mainly includes the following details-

  • Details of the company
  • Details of the directors & shareholders
  • Application of the DIN, i.e. Director Identification Number
  • Application for PAN & TAN of the company
  • Declaration by the directors & subscribers
  • Declaration & certification by the professionals. 

Step 5: Filing of MoA & AoA

You should file the SPICe e-MoA & e-AoA forms at the time of registration. In MoA, you should have to define the goals & objectives of your company. In AoA, you should have to define the rules & regulations related to the management & internal structure of your company.

Step 6: Issuance of PAN, TAN, & Incorporation Certificate

PAN, TAN, & Incorporation Certificate of your company will be issued by MCA (Ministry of Corporate Affairs) after the approval of the documents mentioned above. 

Step 7: Bank Account Opening

At last, you must have to open a current bank account in the name of your company. 

These are the steps involved in the company formation process. To register a Private Limited Company for your business, you should have to follow these steps properly.

Documents required for Private Limited Registration

For Directors

  • Copy of Aadhaar Card of all the directors
  • Copy of PAN card of all the directors
  • Email address & contact number of all the addresses
  • Passport size photo of all the directors
  • Updated bank statement of saving account of all the directors (not older than 2 months)
  • Copy of passport of directors (in case of foreign national or NRI)

For office address

  • Electricity bill of office address (not older than 2 months)
  • Rent agreement of office (if available)
  • NOC given by the Office Owner

Why LegalPiilers is the best for Private Limited Registration?

  • Professional Team

At LegalPillers, we have a team of professionals for private limited registration. Our team holds the expertise for the online registration. Our team of experts solve all your queries with great dedication & patience. We will help you to simplify the process of private limited company registration.

  • Cost-effective

LegalPillers know the importance of money for your business. We provide you the service of registration at the best competitive price. As you know the traditional method of registration process is more costly than the online method. So, opt for the online method and choose LegalPillers for the registration of the company.

  • Time-efficient

LegalPillers know that time is money, especially for a business. We provide you with the time-efficient registration of a private company so that you can focus on the core activity of your business.

  • Secured Documents

We know the need of privacy for your sensitive documents. LegalPillers will keep your important documents & information completely secured. 

  • Specialized Solutions

LealPillers understands that every business is unique. We offer specialized solutions according to the specific needs of each client, whether it is related to shareholder agreements, preparation of memorandum or compliance documentation.

  • Complete support

For LegalPillers, the commitment to the customer satisfaction is the most important thing. Our dedicated support team is always there to timely address your queries and concerns, providing a flawless experience for clients.

  • Post-registration support

The company registration is just the beginning, the journey does not end here. LegalPillers will go the extra mile to provide you the post-registration support, guide your business via important compliance requirements and offer the needed assistance.

  • Latest technology

At LegalPillers, we have the latest technology that enhances our services. We offer the digital solutions for a flawless experience of registration. Our online platform makes the entire process convenient & accessible by facilitating the communication, document sharing, and tracking the progress.

  • Risk Minimization

By choosing LegalPillers for the company registration, you will minimize the risk of errors that can cause trouble for your business in the future.

  • Track Record of success 

LegalPillers builds confidence in clients with a good track record of assisting numerous businesses successfully in their journey of company registration. We have thousands of happy customers.

Conclusion

As there are many benefits of a private limited company so, it is the most popular choice of entrepreneurs who want to start their business, is Private Limited Registration. But before that, you should have to understand all the aspects of the company formation process. LegalPillers is here to help you with the hassle-free registration of your business. We are here to simplify your company registration process. So, contact us for the successful registration.

Choose LegalPillers as your trusted partner and fulfil your dream of starting your business.

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