Private Limited Company Registration
Private Ltd Company:
In India, a Pvt limited is governed by the Ministry of Corporate Affairs (MCA). To form a corporation in India, at least two persons must function as directors and shareholders. It is said to be a registered corporate structure that provides businesses with a separate legal identity from their owners. It safeguards the personal assets of the owners from business liabilities.
It clearly states the difference between management and ownership. Hence, it is chosen by VCs, angel investors, and banks for providing debt or equity funding. Companies can convert from Private Limited Company to Public Limited Company by listing in the Stock exchange to raise funds from the public in the future.
A private limited company has to be audited by a Chartered accountant as per the companies act 2013 & mandatorily adhere to the Secretarial/ Annual Compliances.
At TAX BARR, we deliver swift and budget-friendly services to register a Private limited company with complete security through 100 % online procedure. Private limited company registrations are highly favorable for startups.
Note: PVT LTD Co. is eligible for Startup India registration under the Startup India Initiative scheme undertaken by the Government of India.
Benefits of Registering Private Limited Company:
In India, a private limited company with 50 shareholders can limit the owner's responsibility to their shares and prohibit them from publicly trading. Most entrepreneurs favor private limited companies because of the following benefits:
-
Easy Fund Raising
The Pvt. Ltd. company registration process is severe enough to make this structure legitimate among others, enabling fundraising or borrowing from external sources simpler.
-
Limited Liability
When firms experience unexpected financial difficulties and are on the verge of bankruptcy, the Private limited company shareholders do not risk losing their director's assets except the initial investment.
-
Obtaining funds
Private limited corporations will conveniently accommodate equity investment, as there is a distinction between shareholders and directors.
-
Borrowing capacity
Banks assist with financial aid to private limited companies rather than OPCs and LLPs. Private limited businesses can issue debentures and convertible debentures for availing of funds.
-
Improved trust
A private limited company is expected to provide extensive information on its structure, operations, and finances such as authorized capital, Board of directors, registration office, and thereby providing trust to its Investors & Stake Holders.
-
Scope of multiple opportunities
Private limited companies can take advantage of opportunities as the firm expands by way of Subsidiary holdings or associate holdings, but sole proprietorships and partnerships cannot since they are tied down.
-
Improved governance
Private limited firms are more structured to produce value since they have been governed by the Companies Act of 2013 and administered by the Ministry of Corporate Affairs (MCA).
A Pvt limited Company can be transferred or sold partially or entirely to other persons or entities without causing any hurdles.
Documents required:
PAN CARD
PAN Card of shareholders and Directors.
Foreign nationals must provide a valid passport.
Identity Proof
Aadhar card and Voter ID/ Passport/ Driving License of Shareholders and Directors.
Director’s Address Proof
Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholders and Directors.
Photograph
Latest Passport size photograph of Shareholders and Directors
Business Address Proof
Latest Electricity Bill/ Telephone Bill of the registered office address
DSC
DSC of all directors required.
NOC from owner
No Objection Certificate to be obtained from the owner(s) of registered office
Rent Agreement
Rent Agreement of the registered office should be provided if any
Authorised & Paid up Capital
Amount of Authorised & paid up capital
Share Capital Contribution
Amount of subscribed share capital by each share holder
Personal Details
Mobile No & Email
Other Details
Director Identification Number (DIN), Memorandum of Association, Articles of Association