Private Limited Company Registration Services

Most business owners prefer to register their company as a Private limited company in India. A private limited company offers a lot of benefits and protection to its owners. Small businesses tend to register as private limited companies as their liability is limited to their contribution inside the company.

In comparison to LLP (Limited Liability Partnership), where the partners manage the business, a private company has a different method where there is a distinction between the directors and the shareholders. This offers a more flexible and organised structure with defined roles and responsibilities.

To register a private limited company, individuals need to obtain a Director Identification Number (DIN) and Digital Signature Certificate (DSC), draft essential documents such as the Memorandum of Association (MoA) and Articles of Association (AoA), and submit these along with the application on the MCA portal.

So let’s look at these steps in the upcoming sections.

Advantages of Private Limited Company

Structuring your business as a private limited company lays a strong foundation for your business's success. While it provides perpetual succession benefits where the company's existence is not tied to its shareholders - it also offers tax benefits and greater credibility.

So, let's take a look at the key advantages that this business structure offers.

Our Services

At Benchmark, we're here to make registering your Private Limited Company simple and hassle-free, guiding you every step of the way. Below are the services we provide:

• Advisory on selecting the most suitable business structure for your objectives and growth plans.
• Guidance on determining authorized and paid-up capital requirements to align with your company's needs.
• Assistance with appointing directors and structuring the shareholding pattern among shareholders.
• Preparation of nominee agreements and shareholder agreements to formalize roles and rights.
• Legal review of proposed company names to ensure compliance with trademark laws and naming conventions.
• Documentation for proof of registered office address, including NOC from the owner, utility bills, and agreements.
• Assistance in appointing the first statutory auditor as mandated under the Companies Act, 2013.
• Filing for Professional Tax registration (if applicable) based on the company's location.
• Setting up post-registration statutory compliance services, including maintenance of statutory registers and drafting board resolutions.
• Onboarding and training support for directors on their legal and fiduciary responsibilities post-incorporation.

Documents Required for Private Limited Company Registration

Incorporation of a private limited company starts with proper preparation and submission of various documents. These documents form the foundation of your company’s legal existence. Now let’s look at some of the key documents required to register your business as a private limited company in India.

Basic documents

• Memorandum of Association (MoA): The MoA defines the company's objectives, scope of operations, and authorised share capital.
• Articles of Association (AoA): The AoA details the company's internal management and administrative procedures.

Director and shareholder identification

• Director Identification Number (DIN)
• Digital Signature Certificate (DSC)
• PAN Card
• Identity and address proof

Registered office proof

• Proof of Registered Office Address
• No Objection Certificate (NOC)
• (More info on Shifting of Registered Office)

Additional declarations and forms

• Declaration of Compliance (INC-9)
• e-Form SPICe+ (INC-32)
• e-Form AGILE-PRO

Registration Process of a Private Limited Company

Registering a private limited company in India involves a lot of steps. While the process may appear time-consuming at first glance, a systematic approach coupled with expert guidance can make it a smooth journey.

Post-registration Compliance

Your journey as a business doesn’t end by completing the incorporation process as a private limited company. Instead, it marks the beginning of many ongoing compliance requirements required to ensure transparency, accountability, and adherence to legal and regulatory frameworks.

• Annual General Meetings (AGMs): Every private limited company is required to hold an AGM within 15 months of incorporation and subsequently at least once every calendar year, with no more than 15 months between two AGMs.
• Filing Annual Returns and Financial Statements: Companies are required to file annual returns with the Registrar of Companies (ROC) within 60 days of the AGM.
• Maintaining Statutory Registers: Private limited companies are required to maintain various statutory registers, including the register of members, register of directors, and register of charges.
• Board Meetings: The board of directors must conduct regular meetings to discuss and make decisions regarding the company's operations.
• Timely Tax Compliance: Private limited companies are subject to various taxes, including corporate income tax, GST, and TDS.
• Following Industry-Specific Regulations: Depending on the nature of your business, there may be additional industry-specific regulations to comply with.

Challenges of Private Limited Company Registration

While private limited companies offer many advantages, it's essential to be aware of the potential disadvantages too. These can help you make an informed decision when choosing the right business structure. So, let’s look at a few disadvantages of private limited company registrations.

• Double taxation on distributed profits: The company first pays taxes on its net profits. If these profits are then distributed to shareholders as dividends, they are taxed again at the individual level.
• Restrictions on financial transactions: In a private limited company, taking loans or giving loans to unrelated parties is regulated, which can limit flexibility in managing cash flow and capital needs.
• Compliance and regulatory requirements: Private limited companies are subject to various compliance and regulatory requirements set by the Ministry of Corporate Affairs (MCA).
• Complexity of winding up: The process of winding up or closing a private limited company can be complex and time-consuming.

Bottom line

Registering a private limited company in India is an essential step to building a growing and credible business. While the process involves various legal and regulatory complexities, the advantages it offers in terms of limited liability, access to funding, and perpetual existence make the private limited company a compelling choice for your business.

FAQs

Can a single person register a private limited company in India?

No, a minimum of two directors and two shareholders are required to register a private limited company in India. One Person Registration could be an option for single/solo entrepreneurs.

Can foreign nationals or entities register a private limited company in India?

Yes, foreign nationals and entities can register a private limited company in India, but there are certain conditions and compliance with the Foreign Direct Investment (FDI) policy to be followed.

Can a private limited company change its name after registration?

Yes, a private limited company can change its name after registration by following the proper procedure and obtaining approval from the Registrar of Companies (ROC).

How long does the private limited company registration process typically take?

The registration process can take anywhere from 10 to 15 working days, depending on the complexity of the case and the completeness of the documents submitted.

Can a private limited company convert into a public limited company?

Yes, a private limited company can convert into a public limited company by following the prescribed legal procedures and obtaining necessary approvals.