Private Limited Company Incorporation

Looking to establish your own Private Limited Company….. You’re at the perfect Place. The Apkireturn team is here to efficiently handle all the compliance aspects for your Private Limited Company, ensuring a smooth start for your entrepreneurial journey.

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Private Limited Company Registration in India - An Overview

A private limited company is a form of business organization that combines the benefits of limited liability with a degree of flexibility and operational privacy. Characterized by the suffix “Private Limited” or “Pvt Ltd” after its name, this business structure restricts the ownership of shares to a selected group of individuals or entities, often limiting the number of shareholders.

One of the key advantages of a private limited company is the concept of limited liability, which means that the personal assets of shareholders are protected in the event of business debts or legal issues. This feature promotes entrepreneurship by mitigating the financial risks associated with business activities.

Private limited companies have a separate legal identity from their owners, enabling them to enter into contracts, own assets, and incur liabilities in their own right. This legal separation enhances the company’s stability and longevity.

While enjoying the benefits of limited liability, private limited companies have the flexibility to operate more privately compared to their public counterparts. They are not required to disclose financial information publicly, fostering a level of confidentiality that can be advantageous in certain business strategies.

Despite the restrictions on share transfers and public fund raising, private limited companies are a popular choice for small to medium-sized enterprises, offering a balance of legal protection, operational flexibility, and privacy for their shareholders.

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Process of Incorporation of Private Limited Company

Begin by obtaining Digital Signature Certificates for the proposed directors. This is a crucial step as it ensures the security and authenticity of documents submitted electronically.

Obtain a Director Identification Number for all directors. DIN is a unique identification number required for anyone looking to be appointed as a director of a company.

Gather and prepare all necessary documents as per the requirements, including but not limited to identity proof, address proof, and photographs of the directors.

Check the availability of the proposed company name. It should be unique and not similar to any existing registered entity. This can be done through the Ministry of Corporate Affairs (MCA) portal.

Once the name is approved, proceed to file an online application using the SPICE+ (Simplified Proforma for Incorporating Company Electronically) form. Submit all required documents, including the Memorandum of Association (MOA) and Articles of Association (AOA), online with the Registrar of Companies (ROC).

Upon successful completion of the application process and verification by the ROC, the company will be issued a Certificate of Incorporation. This certificate officially establishes the existence of the private limited company.

It’s important to note that the specific requirements and procedures may vary by jurisdiction.

Documents Required for Company Registration in India

PAN Card of proposed Directors

Both PAN and Aadhaar Card of all Indian Shareholders and Directors.

Business Address Proof

Either of the latest Utility Bill (Electricity, Telephone, Gas, Water) or Property Tax Bill of the registered office address. Rent agreement and NOC from the owner in case of rented property.

Aadhaar Card/ Passport of proposed Directors

Either Voter ID, Passport, or Driving License of the Shareholders and Directors.

Latest passport size photograph of proposed Directors

Latest passport size photographs of all the Shareholders and Directors.

Advantages of Private Limited Company

Members bear liability for the company’s debts only to the extent of their shareholding, providing personal financial protection.

Private limited companies can be registered with a nominal authorized share capital, eliminating the requirement for a minimum paid-up capital.

Private limited companies enjoy a distinct legal entity separate from their members, ensuring a clear division between management and ownership. Managers are held accountable for the company’s financial losses.

As a separate legal entity, the company continues to exist independently of changes in leadership or membership. The business operations persist regardless of the founders’ or directors’ status.

Private limited companies permit 100% Foreign Direct Investment (FDI), allowing foreign individuals or entities to invest directly in the company.

Companies incorporated in compliance with MCA norms gain heightened credibility in the market. Adherence to specific regulations and compliance requirements makes the company more trustworthy for suppliers, vendors, investors, and other businesses. Basic information about the company is easily accessible on the MCA website.

Comparison chart of Different types of Companies at a glance

ParticularsPrivate Limited CompanyPublic Limited CompanyLimited Liability PartnershipOne Person Company
Applicable ActCompanies Act 2013Companies Act 2013LLP Act 2008Companies Act 2013
Number of MembersMinimum 2Minimum 7Unlimited PartnersOnly 1 Required
Number of Directors2 to 153 to 152 PartnersOnly 1 Required
Capital RequirementZeroZeroZeroZero
Extent of LiabilityLimitedLimitedLimitedLimited
Foreign Direct InvestmentEligibleEligibleEligibleEligible
Statutory AuditRequiredRequiredRequiredRequired
Compliance FrequencyYearlyYearlyYearlyYearly
Tax Rate22%22%30%22%

How apkireturn team will help in the Company Registration Process?

We believe in complete hand holding of our client, we will assign a personal manager to help you complete the entire process of company registration.

We will assist you in following areas:

Steps to be taken care of Post Incorporation of the Company

There are few compliances which needs to be done as per the schedule of the MCA, major activities are listed below for your reference, as our time will also help you out not to miss any of the compliances.

This is a one-time activity, to be done once every year.