New Delhi (India), April 23: A Pvt. Ltd. company is a business structure formed and incorporated under the Company Act of 2013. The company can be owned by multiple shareholders where the rights to transfer its share is restricted and the number of shareholders is limited to 200. The shares of the company cannot be traded freely or publicly on a stock exchange.
Registering a Pvt. Ltd. company is mandatory under the Companies Act of 2013. When you register a company, it gets a legal existence and other benefits. Once registered the company will be considered a separate taxable entity under the Income Tax Act.
The company can have a bank account in its name, sign contracts and file suit in its name. The main benefit is the transparency in the company’s data and financial information as all this can be viewed on the MCA (Ministry of Corporate Affairs) portal. This helps to make the company more credible to investors, customers and government agencies.
Registration process
You have to fulfil certain requirements for a Pvt Ltd company registration. You will have to decide on the name of the company, get the company’s registered address and decide on the number of shareholders and directors. Once the requirements are met you can apply to register your company with the Registrar Of Companies (ROC).
You will need to acquire DIN (Directors Identification Number) and DSC of Class 3 (Digital Signature Certificate) for the directors. You can fill the Form DIR-3 on the MCA website. The documents required are Address proof, PAN card and your photograph.
The name of your company must align with the MCA guidelines. The name of your company should be unique and it should not be the same or similar to any existing company, LLP or registered trademark. You will have to fill out the SPICE Plus PART A form with the ROC.
You will have to draft two important legal letters called the Memorandum of Association (MOA) and the Articles of Association (AOA). The documents should be drafted on stamp paper and signed by all the shareholders in the presence of a Notary. MOA contains the company’s basic legal information and AOA contains the rules and regulations of the company’s internal management.
To register your company, you will have to fill out the SPICE Plus or INC-32 form online. It is divided into two parts Part A and Part A. Part A is for the approval of the company’s name and Part B is for the incorporation of the company.
The ROC examines the SPICE Plus application along with the fees and documents. When all the information is verified, the ROC registers the company and issues a Certificate of Registration in the name of the company. Also, the company’s PAN and TAN are provided.
Documents required
To register your company, you will have to submit the right documents with your application to get approved. The documents required are:
The shareholders and the directors of the company are called the promoters of the company. All the promoters have to submit a few personal documents for registering the company like a PAN card, Adhar card, address proof, latest utility bills and a passport-sized coloured photograph.
The registered address of the company is the address with which the company gets registered. Proof of address of the location is required for incorporation. You can provide utility bills not older than 2 months from the date of application. The owner of the company’s office will have to give a No Objection certificate.
Legal documents like MOA and AOA have to be drafted and submitted for the company’s registration.
If you own a startup then the two popular business structures are an LLP and a Pvt. Ltd. Company. Both LLP and the Pvt. Ltd. Company get a legal identity when they are registered with the MCA. You can find startup legal services to get your company incorporated. A Pvt. Ltd. Company is usually preferred by investors but there are compliances which have to be followed. Once registered the company will be considered to be credible by the investors, customers and agencies.
If you choose an LLP business structure then there is no minimum paid-up capital required and It is preferred if you have a very low capital.
