Private Limited Company |How to apply| Registration 2020?
Private limited is a company which is privately held by small businesses and most popular legal structure in India. For the incorporation of a Pvt. Ltd company minimum of two and maximum of fifty members are required. Private limited means that the liability of the director of company is constrained and personally any shareholder is not liable to the amount of debt and his personal assets wonâ€™t be used to pay the amount of debt. The company itself is responsible for any kind of actions, Finances, and liabilities.
Private limited company registration is registered under The Companies Act 2013 by the Ministry of Corporate Affairs. The Private Limited companies are most recommended types of business entity for startups and small businesses because it has the ability to raise funds, limited liability, a separate legal entity and are easy to transfer. It takes 15-20 days to register a private limited company in India, with subject to the government documents fees and client documents submission.
The person should fulfill the following conditions to become a shareholder or director of the company
- Minimum age of the person should be 21
- Resident or citizen of India
- Authorisation letter from the registered entity
Benefits of Private Limited Company registration
The most important advantage of private limited is that it has limited liability protection which means that the liability of the director is very limited. The director has no personal liability to the companies debt
Private limited company is a registered separate legal entity under The Companies Act 2013 by the government of India. A private limited company is a legal entity and juristic person for the law
It has perpetual existence, the private limited company will keep on existing in law even after the death of shareholders/ directors or company becomes bankrupt/ insolvent
The ownership of private limited company can easily be transferred by transferring the shares of the company
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Documents required for Private Limited Company registration
- PAN Card: PAN card of the directors, and shareholders
- ID Proof: Aadhar card, voter Id and driving license of a shareholder and director
- Address proof: Latest Mobile/electricity bills as address proof
- Scanned passport size photo of the director: Passport sized color photos of the director and shareholder.
- Bank statement of all directors
- Rent Agreement/ NOC if property is one rent
- Registered office proof: Latest telephone bill, water bill and electricity bill of the registered office. These documents must not be older than two months
Procedure of private limited company registration
- Digital Signature Certificate:For private limited company registration The director of the firm should have a digital signature. The digital signature should be used by the file the registration, ROC compliance forms and the tax returns of the company.
- Director Identification number: DIN is an 8 digit unique Director identification number allotted by the Central Government to any person intending to be a Director or an existing director of a company. DIN has a lifetime validity.
- Name reservation: One of the important step is to reserve a unique name for the company. Although it is mandatory to add a suffix of Pvt. Ltd. company in the last of registered company.
Frequently Asked Questions
Can one person start a Private Limited Firm?
Ans. Yes, but a minimum of two directors is required to incorporate this type of firm. The Companies Act, 2013 has introduced the concept of One Person Company (OPC) private limited, in which a single individual can start an Individual Restricted Business. Thus, if you plan to incorporate OPC, you can incorporate it with only one director.
What are the requirements for a Pvt. Ltd. Company?
There are some documents like Identity proof of director, specimen signature, address proof of premises, address proof of directors, passport size photographs, utility bill (like electricity bill) which are required for this filing process.
How can I check a firm status in India?
Steps to Check Company Registration Status:
- Step 1: Go to the MCA website.
- Step 2: Go to the MCA Services tab. In the drop-down click on View Company/LLP Master Data.
- Step 3: Enter the companies CIN. Enter the Captcha code and click on submit.
How do I know if my business name is already taken?
To find out if your business name has been claimed online, do a simple web search to see if anyone is already using that name. You also need to check whether a domain name (or web address) is available. You can do this using the WHOIS database of domain names. If it is available, be sure to claim it right away.
Is CIN number mandatory?
Corporate Identification Number (CIN) is mandatory to be mentioned along with the name of the Company. With applicability of the New Companies Act, 2013, now Companies are required to add details of its CIN along with all other details.
Can a registered office be a residential property?
Yes, residential property can be used as the registered office of a company. However, empty land or vacant buildings cannot be used as a registered office.
Can I start a business without registering it in India?
The answer is a big no! Registering a firm is not the only way to start a business in India. The simplest way to start your own business is to acquire any tax license, like service tax filing.
How much does it cost to register a small business?
In some states, you can file your name statewide by filing a form and paying a fee and the fee varies in different states.
How do I register my business legally?
There are three options for business name registration.
- Use a Doing Business As (DBA) The easiest way to register a business is to file a DBA, also sometimes called registering a fictitious business name, with your state or county clerk office.
- Create a Business Structure.
- Register a Trademark.
Can a Limited Company buy a new house?
If you are a contractor, business owner or independent professional you may have considered buying property through your business. However, depending on your individual circumstances, it can be tax efficient to buy an additional property through your company.
Can I transfer my property into a limited firm?
In order to transfer the properties into a limited company, the properties must be legally sold and it may rise to some additional costs such as stamp duty, land tax etc.