A Simple Guide to Register A Private Limited Company

Registering A Private limited company in India feels very complicated to you, but don’t worry it has become one of the easiest things to do in 2024. After this article you will be able to register your company even if you are not from a legal background.

We will guide you everything here, which helps you to register your company  as fast &  early.

Read this article thoroughly, We have explained all the procedures here in a Step-by-Step format that fullfills all the legal compliances.

What is a Pvt Ltd Company?

A Private limited company commonly known as (Pvt Ltd company) is a business structure followed in India, where a group of people register their venture as a company in India to make their company as a private firm where more than two individuals hold their stake or share in the company and have limited liability of the organization.

Mostly we have seen, small & mid-sized businesses register this business structure.

Here are some of the following reasons:

  1. To maintain the position of individuals in the company.
  2. To reduce the liability of the company.
  3. To operate the company independently.
  4. Creates the separate legal identity of the business.
  5. And, helps to maintain the security of the company.

Now in 2024 we can see most of the upcoming startups & private partnered businesses are registering their organization for Pvt ltd company.

Benefits of Registering a Company

There are Incredible benefits of registering your  Pvt ltd company in India:

Here are some of them

  • It helps to limit the liability of an owner of a company.
  • The company assets get protected from shareholders.
  • It helps to Attract foreign investments from angel investors & private grouped firms.
  • Easy to raise funds during initial days of the company.
  • It increases the existence of the company even if the owner has died, the company will still run in future.

We have explained to you the several benefits of  registering a company. Now you need to know what registration process is involved to register your company as fast.

Pvt Ltd Company Registration Process in India

The registration of Pvt ltd company in India sounds more complicated but actually it’s very easy. You are thinking of how easy it is ?

So, let us tell you, there are 1000s of people who have not graduated from college but are still running the company & growing their businesses to new heights.

It’s clear, I think so. Anyone can register a Pvt ltd company, You just need to be running a proper business that has cash flow coming into the industry.

Pre-Registration Process:

Firstly there are some pre-registration procedures which you have to follow initially.

Follow the Steps:

  1. Choose a Company Name: First, check if the name that you want to register for your company is available or not. You find it on the MCA website (Ministry of Corporate Affairs) & if you are facing any issues with this, you can consult a professional. And you must know the name you are registering must be unique and reflect your business goals.
  1. Director and Shareholder Details: Second, decide your company’s shareholders or directors and submit their details like the name of the person, the address they are currently living in, and their digital signature certificates.

Registration Process:

Follow the registration process step-by-step.

  1. Obtain Digital Signature Certificates (DSCs): All directors who are applying to be a member of the company, they need to submit DSC for online filing of documents.
  2. Apply for Director Identification Number (DIN): Each director of the company must have a DIN, which is a unique identification number issued by the MCA to the board directors of  the organization. For DIN you can apple online at the MCA portal. 
  3. SPICE+ Form Filing: SPICE+ (Simplified Proforma for Incorporating Company Electronically Plus) is the online form used for company incorporation. It includes all the details about your company, directors, shareholders, and proposed Memorandum of Association (MOA) and Articles of Association (AOA) details collectively.
  4. PAN and TAN Application: Through SPICE+, you can apply for the company’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).

Post-Registration:

  1. Certificate of Incorporation (COI): Upon successful registration of your company , the MCA will issue a Certificate of Incorporation (COI) to you, which is the legal document confirming the existence of your company.
  2. Commencement of Business Certificate (Optional): If the company requires funds for pre-incorporation activities, you may need to obtain a Commencement of Business Certificate (CBC).
  3. Bank Account Opening: Now Open the current bank account for the company in which you maintain the financial transactions of your business..
  4. Ongoing Compliances: Your company needs to follow the ongoing government compliances like filing  the ROC and tax.

How much time does it take to register a company

The Time required to register a Private limited company in India typically ranges from 10 to 15 days depending from state to state if there are less or no holidays in a month the registration can be completed fastly.

But have some patience during the process if any document is not filed correctly it may result into delays & extra charges.

Conclusion

Registering a private limited company in India can be useful for you if you are in the early stages of your business. It helps to maintain the structure of  your business by which you can focus mainly on the growth of your company. Just follow some of the legal compliances which you have to fill annually to the government like tax details etc. It will be a more convenient option to run a pvt ltd company and helps you operate your business smoothly.

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