Registering a Private Limited Company (PLC) in India is a structured process that offers significant benefits for businesses. Here’s an overview of the essential aspects and steps involved in registration, based on the information you provided:
What is a Private Limited Company?
A Private Limited Company is a privately held business entity offering limited liability to its shareholders. Its distinct legal identity and other benefits make it one of India’s most preferred business structures.
Key Characteristics:
- Limited Liability Protection: Shareholders’ liability is limited to their shareholding.
- Separate Legal Entity: The company can own assets, enter contracts, and take legal action independently.
- Membership Restrictions: Requires 2–200 shareholders and a minimum of 2 directors.
- Name Requirements: Ends with “Private Limited.”
- Restricted Share Transfer: Shares transfer requires board approval.
- Prohibition on Public Invitations: Cannot raise funds from the public.
Types of Private Limited Companies
- Company Limited by Shares: Liability limited to the unpaid value of shares.
- Company Limited by Guarantee: Liability activated only during winding up.
- Unlimited Company: Members have unlimited liability, but the entity remains distinct.
Advantages
- Limited Liability: Personal assets are secure.
- Legal Entity: Independent operations and existence.
- Ease of Raising Capital: Can attract investors.
- Tax Benefits: Eligibility for specific exemptions.
- Credibility: “Pvt. Ltd.” designation boosts trust.
Disadvantages
- Regulatory Compliance: Higher filing and reporting requirements.
- Complex Setup: More intricate than simpler structures.
- Restricted Shareholding: Limited to 200 shareholders.
- Public Disclosure: Financials are publicly available.
- Complex Exit Process: Dissolving or exiting requires more formalities.
Steps to Register a Private Limited Company in India
- Acquire Digital Signature Certificate (DSC):
- Required for directors/shareholders.
- Essential documents: PAN, Aadhaar, photo, email, and phone number.
- Obtain Director Identification Number (DIN):
- Mandatory for all directors.
- Reserve Company Name (SPICe+ Part A):
- Suggest up to two names for approval.
- Submit Incorporation Details (SPICe+ Part B):
- Provide details on capital, office address, directors, shareholders, and more.
- Prepare MOA & AOA (SPICe+ MOA & AOA):
- Draft and digitally sign these foundational documents.
- AGILE-PRO-S Form:
- For GST, EPFO, ESIC registration, and opening a bank account.
- Receive Certificate of Incorporation (COI):
- Includes CIN, PAN, and TAN for the company.
Document Checklist
- Indian Nationals: PAN, Aadhaar, proof of identity/address, and passport-sized photo.
- Foreign Nationals: Notarized documents, passport, and address proof.
- Registered Office Proof: Rent agreement or ownership proof with NOC.
Post-Registration Compliance
- Maintain proper records.
- Conduct annual meetings.
- File returns with the Registrar of Companies (ROC).
How harsh yadav & Co. Can Help?
harsh yadav & co. offers professional services for company registration, including:
- Name reservation and availability check.
- Documentation and filing.
- Obtaining DSC, DIN, and other certifications.
- Regulatory compliance and post-incorporation procedures.
By choosing harsh yadav & co., you ensure a streamlined and hassle-free registration process, letting you focus on your business goals while they manage legal requirements.
This structured process ensures that setting up a Private Limited Company in India is both efficient and compliant with statutory regulations.
