How To Register A Private Limited Company?
Registering a Company is quick, easy, and can be done online with Buiznest in 3 simple steps:
Online Company Registration in India - An Overview
YOU CAN NOW REGISTER A COMPANY IN INDIA AT JUST 6,999 (ALL INCLUSIVE)*
Private Limited Company is one of the highly recommended ways to start a business in India. This type of company offers limited liability for its shareholders with certain restrictions placed on the ownership. An LLP has partners, who own and manage the business. Whereas in private limited company registration, directors may be different from shareholders.
Register a company today to get funding and tax benefits.
Buiznest, a leading legal consultant, offers quick Company Registration service in India with three simple steps
- Register your directors with the MCA (Ministry of Corporate Affairs)
- Get guidance to choose the right company name
- Draft your company’s constitution (MoA and AoA)
A Certificate of Incorporation (CoI), along with PAN and TAN can be received post approval of the company registration process. You can officially open a current bank account with the Certificate of Incorporation and begin your business operations.
Please fill up the form below so you can speak to our legal advisor on the company registration process.
Why choose Company Registration in India? Benefits
Registering a company offers many benefits. A registered company makes it genuine and increases the authenticity of your business.
- Shields from personal liability and protects from other risks and losses.
- Attracts more customers
- Procures bank credits and good investment from reliable investors with ease.
- Offers liability protection to protect your company’s assets
- Greater capital contribution and greater stability
- Increases the potential to grow big and expand
- You will also get Zero Balance Current Account – Powered by DBS Bank *
Checklist for Registering a Company in India
According to the law in the Company Act, 2003 in order for any company to be registered in India, the below conditions have to be met.
A private limited company must have at least two directors and at most, there can be 15. Of the directors in the business, at least one must be a resident of India.
The name of your business must be unique. The suggested name should not match with any existing companies or trademarks in India.
Minimum Capital Contribution:
There is no minimum capital amount for a company. A company should have an authorized capital of at least Rs. 1 lakh.
The registered office of a 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.
How to Register Company Online? - A detailed registration process
Company Registration in India will boost the progress of startups and provide an additional edge over those who have not registered. The Ministry of Corporate Affairs governs the company registration process with rules and regulations framed in accordance with the law.
- Step 1: Application for DSC (Digital Signature Certificate).
- Step 2: Apply for the DIN (Director Identification Number)
- Step 3: Application for the name availability.
- Step 4: Filing of the EMoa and EAOA to register private limited company
- Step 5: Apply for the PAN and TAN of the company
- Step 6: Issued certificate of incorporation by RoC with PAN and TAN
- Step 7: Opening a current bank account on company name
Search a company before Company Registration
One of the primary steps in Company Registration is to ensure that the company name has not already been taken by another legal entity. We can run a company name search to check the availability of the particular name in India against the MCA and trademark database.
We recommend the businesses to come up with three to four alternative names during the approval stage of Private Limited Company Registration. The Ministry of Corporate Affairs will be the final authority to approve the name based on the availability rules and regulations.
If you are disappointed that a preferred name is taken, do remember that the name of your company doesn’t have to be your brand name. However, if you’re going to trademark your brand name, also check if it has already been trademarked at http://www.ipindia.gov.in/. If it has been trademarked, you would need a no-objection certificate from its owner to have it approved as your company’s name.
Documents required for Online Company Registration
In India, Private Limited company registration cannot be done without proper identity proof and address proof. Identity and address proof will be needed for all the directors and the shareholders of the company to be incorporated. Listed below are the documents that are accepted by MCA for the online company registration process acceptable.
Identity And Address Proof
- Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
- Scanned copy of Voter’s ID/Passport/Driver’s License
- Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
- Scanned passport-sized photograph specimen signature (blank document with signature [directors only])
For the foreign nationals, apostilled or notarized copy of the passport has to be submitted mandatorily. All documents submitted should be valid. The residence proof documents like the bank statement or the electricity bill must be less than 2 months old.
Registered Office Proof
For online company registration in India, the company must have a registered office in India. To prove admittance to the registered office, a recent copy of electricity bill or the property tax receipt or water bill must be submitted. Along with the rental agreement, utility bill or the sale deed and a letter from the landlord with her/his consent to use the office as a registered office of the company should be submitted.
- Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
- Scanned copy of Notarized rental agreement in English
- Scanned copy of No-objection certificate from the property owner
- Scanned copy of sale deed/property deed in English (in case of owned property)
Note: Your registered office need not be a commercial space; it can be your residence too.
How can we help in Registering your Company in India? Why Buiznest
The Private Limited Company Registration process is completely online, so you don’t even have to leave your home to get your entity registered. At Buiznest, we complete the Company Registration online within 14 days.
Buiznest Company Registration package includes:
- DIN and DSC for two Directors
- Drafting of MoA & AoA
- Registration fees and stamp duty
- Company Incorporation Certificate
- Company PAN and TAN
- Zero Balance Current Account – Powered by DBS Bank *
* Applicable only at the locations where DBS Bank is operative.
FAQs on Private Limited Company
Do I need to be physically present?
How much time is needed to setup a private limited company in India ?
What are the rules for picking a name for a private limited company?
What documents are required to complete the process?
What is a DSC?
Does a private limited company have continuous existence?
How much does it cost to run a private limited company?
Is it necessary to have a company’s books audited?
What are articles of association and memorandum of association?
Are two directors necessary for a Private Limited Company Registration?
Who can be the in a Private Limited Company?
What is the minimum capital needed to form a Private Limited Company?
Can the director of a private limited company also be a salaried person?
Can the limited liability partnership (LLP) be converted to a Private Limited Company?
What is the time taken by Buiznest.com in forming a Private Limited company?
Can NRIs/Foreign Nationals become Director in a Private limited Company?
Does one have to be present in person for the incorporation of a Private limited Company?
A Private Limited Company called a separate legal entity. Why?
Can one register a Private limited company on their home address?
If there are no partners available, then can one register their family members in the company?
Do you want to start Foreign Limited Liability Partnership (FLLP)?
Do you wish to convert an existing Private limited / unlisted public company into LLP?
Are you keen to convert an already existing partnership firm to a LLP?
Are you keen to start an Indian LLP?
How can one register a section 8 company?
How can one register Part 1 Company?
What are the 10 common mistakes to avoid during company registration in India?
2. Selecting the wrong business type during registration
3. Wrong supporting data in company registration form
4. Adding too many directors and shareholders for the company
5. Incorrect share allocation of your company
6. The absence of shareholder’s agreement in your application
7. Wrong business description
8. Lack of awareness of local business laws and taxes
9. Choosing the wrong service provider for company registration
10.Buying a complete package
What are the top five reasons for registering a company?
1.Opening Of Business Bank Account: A current bank account is the basic requirement and an important asset of any business be it a sole proprietorship, partnership, private limited, etc and serves as legal proof of existence. While opening a business bank for a private limited company in the respective state, copies of the incorporation certificate and memorandum of association need to be submitted Whereas no such documents are needed for sole proprietorship and partnership companies.
2.Easy Transfer Of Ownership: At some point of time, there does arise a need to transfer the ownership of business and in such cases, it becomes more complex for unregistered business entities. Sole proprietorships cannot be sold and only the transfer of ownership of assets can be done. On the other hand, the transfer of shares and business-related documents are easy for the entities that are registered as private limited company or LLP.
3.Limited Liability Protection: Any business is prone to incur a loss and one of the main advantages of registration is that it offers limited liability protection and hence the business promoters are not liable for the liabilities of the business. There is no way of losing personal property.
4.Secure Funding In order to move your business forward, seeking and securing investment cannot be missed out. Funding could be in the form of debt or equity. Company incorporation facilitates the funding process well and attracts attract more potential investors. Also, most banks and financial institutions prefer to fund registered entities rather than unregistered entities.
5.Brand Recognition A registered business is the biggest asset and has the prospects of being passed down as an inheritance to generations or it could be sold to new breed entrepreneurs. Registering a business is required for sustainability.
What are the benefits of a Private Limited company?
Access To Funding
Scope Of Multiple Opportunities
How can you register a company in India with MCA?
What are the INC-29 company registration procedures in India?
1. Obtaining Digital Signature Certificate (DSC) Time Taken: 2 to 4 days
As the company incorporation is completely done online, the signature of the director of the company is required on all the electronic documents. It is sufficient to have one of the directors’ sign. For this, a Class-II Digital Signature Certificate (DSC) is needed, which is available from one of the six certifying authorities chosen by MCA. The rates of the vendors vary and the charges will include the cost of the physical USB token on which the certificate is deposited. It takes two to five days because the hard copies of documents and forms have to be couriered to the vendor, ie., online legal service providers, including buiznest, would, however, only needs self-attested soft copies to begin the process). Documents to be submitted
1. Hard copy of the completed Class-II form 2. Copies of PAN card. In case of foreign national, copy of passport is accepted 3. Copies of address proof - either Voter id, passport, ration card, driving license or Aadhar card. Even copies of utility bills like telephone bill, electricity bills are accepted. But they have to be in the name of the applicant and not older than two months from the filing of the form (12 months, in case of foreign national) Important note: For all Indian residents, the documents have to be self-attested. In case of NRIs and foreign nationals residing in non-Commonwealth countries, the documents need to be notarized. Common reasons DSC may get rejected Typos and glaring errors may be unavoidable and following are some of the reasons for rejection of DSC Acronyms instead of full names: While it may be usual for people to have their names abbreviated with surnames, it is a strict no when it comes to company registration. The Director names have to be mentioned full with right spelling, irrespective of what is mentioned on the ID/Address proof. Spelling mistakes: No errors are acceptable in the names, even if they are minor. Old bills: Only latest utility bills in the name of the applicant are accepted. Prefixes: Do not prefix Mr. or Mrs. or Shri. etc.
2. Search For Company Name Availability Time Taken: 1 to 2 days (simultaneous with the DSC application) Costs involved: Free There is no necessity of waiting for long time finalize the name, in fact, it can be started once the application for DSC is filed. As the INC-29 allows only company name to be proposed, the MCA is very picky on approving the company name. Following the guidelines, the name can be selected without any hassles.
3. Drafting Of AoA & MoA Time Taken: 2 days Costs involved: Rs. 2000 to Rs. 5000 per document Upon finalizing the name, further definition of the proposed company has to be provided to the MCA in the form of Articles of Association (AoA) and Memorandum of Association (MoA). These can be drafted perfectly seeking the assistance of lawyers and have to be self-attested.
4. The Right Order Of Documents Time Taken: 2 days Costs involved: n/a a. DIN Application: A maximum of three directors can apply for the Director Information Number (DIN). However, if there are more than three directors, DINs can be applied for exclusively. The requisites for the application are a passport-sized photograph, scanned copies of the PAN card (Passport in case of foreign national), soft copy of driver’s license/voter ID/latest utilities bill. All the documents have to be self-attested in case of Indian nationals. Foreign nationals residing in the commonwealth countries needs to get them notarized. b. Name Approval: The name has to be finalized and the description of the company must be given in a single line. c. AoA & MoA: The objective of the business should be mentioned in Articles and Memorandum of Association and in the MoA, the affidavit from all the subscribers in Form INC-9 has to be affixed. d. Registered office verification: As part of verification of the office address, a copy of the latest utility bill of the office address, a copy of the rental agreement along with an NoC from the owner (if it is a rented property) and sale deed (if property is owned) are needed. e. Declarations and appointment letters: Self-attested appointment letters of directors, Chief Executive Officer (CEO), managers, declaration by first director in INC-9, and declaration by the appointee director and managing director in the Form DIR-2.
5. Filing Of INC-29 Time Taken: 1 day Costs involved: Rs. 2,000 + authorised capital fee + stamp duty It is important to thoroughly verify the form to avoid rejection and re-submission. Once it is filed, the RoC fees and stamp duty should be paid electronically. The fees of the RoC and stamp duty differ according to the authorized capital and location, respectively
6. Verification By RoC And Issue Of Certificate Of Incorporation Time Taken: 2 to 8 working days Costs involved: n/a The next step is where the RoC validates the submitted documents. If any changes are required, the same will be notified to the applicant. If there are not changes, the incorporation certificate will be sent through email in 7 to 8 working days.
7. Obtaining TAN And PAN Time Taken: 21 working days Costs involved: Rs. 67 + Rs. 109 The Income Tax Act, 1961, needs each company to quote the registered Tax Account Number and Permanent Account Number. The same can be done through NSDL website.
What are the mandatory post incorporation compliances for companies?
1. Meeting of the Board of Directors The Board of Directors is one of the most powerful bodies in a company. In any organization, the first board meeting has to be conducted within 30 days of its incorporation. There needs to be conducted a minimum of four board meetings in a calendar year, that is, at least one in every quarter. The gap between two consecutive meetings should not exceed 120 days. In the case of small companies with turnover not more than two crores, a minimum of two meetings must be held in a financial year. Important decisions related to the company are agreed upon in the board meeting.
2. Issue of share certificates for your company As per Section 53 of the Companies Act, 2013 the share certificates issued must be delivered to the subscribers of memorandum within two months from the date of incorporation. If the shareholders surrender their allotted letters, the company should send share certificate to those members by registered post. The subscriber has to remit the agreed subscription amount within 60 days from the date of incorporation.
3. Appointment of auditors Upon receiving the certificate of incorporation the first thing a business has to do is appoint the first auditor of the company. This has to be done within 30 days from registering the company during the Board Meeting. The Auditor can hold the post until the end of the first Annual General Meeting. If the company fails to appoint the auditor, then the Board of Director should call for an Extraordinary Meeting by informing the members of the Board within 90 days.
4. Minutes of the proceeding of the board meeting and general meetings Section 118 of the Companies Act and Rule 25 of Companies (Management and Administration) governs the aspect of the minutes of the proceedings. The meeting minutes must contain a fair summary of the proceedings and its conclusions. After a board meeting/general meeting is concluded, every company should prepare, sign and keep minutes within 30 days. Minutes of the board meeting is signed by the chairman of the meeting or chairman of the next succeeding meeting. If the Chairman fails to sign within the said period it is signed by a Director duly authorised by the board
5. Filing of disclosure of interest by Directors in your company The directors of the company can disclose their interest or concern with other companies or firms or other associations of individuals, including shareholding. If a director makes a contract with the company and does not disclose his interest, it is considered as a breach of trust among the directors. Rule 9 of (Meetings of the board and its power) Rules 2014 provides that such disclosure shall be made in form MBP-1 and filed with the ROC in form MGT-14. If the Director fails to disclose his interest he shall be liable with imprisonment which may extend to one year, or with a minimum fine of Rs. 50,000/- which may extend to Rs. 1,00,000/- or with both.
6. Approval and signing of financial statements Section 134 of the Companies Act 2013 and Rule 8 and 9 of the companies (Accounts) Rules, 2014, deals with the financial statement and board report. Every company should file the financial statements within 30 days of its annual general meeting with RoC in AOC-4. It contains balance sheet (AOC-4.) for Filing of Financial Statement, Consolidated Financial Statement AOC-4 (CFS) for the companies, which have Subsidiary company, Associate Company, and Joint Ventures. Profit & Loss Account (AOC-4.) for Filing of Profit & Loss Account. Based on the financial statement
of the company, the board shall prepare the report and submit it during the general meeting. The financial statement should be approved by the Board of Directors and shall be signed by the chairperson of the company. The chairperson is authorised by the Board or by two directors out of which one shall be the Managing Director of the company and the Chief Executive Officer.
7. Filing of annual returns after company registration Every company should mandatorily prepare its annual return with Registrar of companies or RoC within 60 days of annual general meeting in MGT-7 that has to be signed by at least one director and certified by a Company Secretary in practice. If a private company fails to comply with the rules mentioned under the Act, every person who is responsible for the fault will be punishable with a fine. Speed up the company registration process through SPICe - Fast Track Company Registration.
What are the documents required for registering a Private Limited Company?
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