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Why Private Limited Company

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A private limited company is a voluntary association of not less than two and not more than two hundred members, whose liability is limited, the transfer of whose shares is limited to its members and who is not allowed to invite the general public to subscribe its shares or debentures.

Reasons to incorporate a Private Limited Company:
  • Easily Setup and recommend to Growing Startups
  • Private Investment
  • Continuity of existence
  • Limited liability & Less legal restrictions
  • High Borrowing Capacity : Banks gives preference to private limited company other than Individual and firms.
  • Separate Legal Identity
  • Easy Share Transferability
  • Easy to sell business for a company than any other business form
  • Capacity to & be sue
  • Corporate governance
Disadvantages of Private Limited Company:
  • Shares are not freely transferable.
  • Not allowed to invite public to subscribe to its shares
  • Scope for promotional fraud
  • Undemocratic control
Documents required for registration:
  • ID Proof and Address Proof for all Directors:
    1. ID Proof (*PAN Card Mandatory) of all Drectors
    2. Aadhar Card | Voter Id | Passport | Driving License anyone of all Directors.
  • Registered office address proof (Only for Communication Purpose)
    1. Latest utility bill (Electric bill/Telephone bill/Gas Bill) or latest tax receipt/ownership deep of the property to be used for registered office. [ * not older than 2 months
    2. NOC from owner to utilize he premisethe pemise as registered office of company

Steps to be Taken:

Step 1 - Application for DSC (Digital Signature Certificate).

Step 2 - Application for Director Identification Number (DIN) in form DIR-3

Step 3 - Search & Apply to Ministry of corporate affairs for the Company Name availability.

Step 4 - Drafting of Memorandum of Association (MOA) & Articles of Association (AOA).

Step 5 - Filing of e-forms with RoC (Registrar of Companies).

Step 6 - Payment of RoC Fees & Stamp Duty.

Step 7 - Verification of documents / forms by RoC

Step 8 - Issue of Certificate of Incorporation by RoC


Time Period to Incorporate a Private Limited Company ?

A Private Limited Company registration can be completed in 30-60 days. The time taken for registration depends on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy registration, it is recommended to choose a unique name for your Company and ensure that you have all the required documents prior to starting the registration process.


FAQ Series on Private Limited Company Registration


1. Can I Register a Private limited Company on my Home Address ?

Yes, you can register your company at your residential address. there is no issue, you need only the utility bill copy of the same.


2. Can I Register my family members in the company, if have no partner ?

Yeah, it's a good idea to register on your family member on the Paper. even on later stage you can change this or transfer the shares of the directors.


3. How many days takes to register a private limited company ?

Its take minimum 10 to 15 days avg. to register a private limited company in India.


4. How much cost for the private limited company ?

Its cost nearby 14999/- INR except in some state like Punjab, Kerala and MP State due to Stamp Duty.


5. What is meant by the authorised capital in case of private limited company i.e is 1 lakh rupees ?

It's a just a maximum share value which you can issued in your company so its not mean that you have to invest the 1 lakh rupees. you can start your own private limited company with any amount of capital.


6. GST Registration is required for private limited company ?

GST Registration is optional till the 20 lakh rupees turnover and for north east state 10 lakh rupees turnover. it's a complete separate registration apart from private limited company registration.