When it comes to choose a form of business structure for your company, a private limited company in India is most preferred form of business entity in comparison to other companies. Almost 93% of the Indian companies are registered as a private limited company. It has various benefits in comparison to other companies like ease of creating and winding up, separate management and ease of creation, etc.
A private limited company in India is governed and regulated under the Companies Act, 2013 by the Ministry of Corporate Affairs. In this article, we discuss some main aspects of registering a private limited company in India with Swarit Advisors.
- Limited liability protection: A registered private limited company is privileged with limited liability protection. In case of any debts or loss of the company, all the personal assets of the investors and directors remains protected.
- Separate legal entity: A private limited company in India is considered to be a separate legal entity as it possesses all the rights to sue others or to be sued by the others in its capacity.
- Continuous existence:A private limited company has all the rights of continuing their business even if all the former directors of the company die.
- Ease of transfer of shares and ownership: It is a very easy job for a private limited company to transfer their ownership or to issue fresh shares in addition to the existing directors and shareholders of the company.
Minimum requirements for the registration of private limited company are as follows:
- Minimum number of 2 directors and maximum number should not exceed than 15 directors.
- Minimum number of 2 shareholders and maximum number should not exceed than 200.
- No minimum share capital.
- Director signature certificate or DSC for atleast one of the director.
- Director identification number or DIN for all the respective directors.
Here is the list of documents you need to submit to Swarit advisors to get your registration done:
- Identity proof of all the directors like driving license, Aadhar card, passport or voter ID card.
- PAN card of the applicants.
- Bank statement copy
- Mobile number and email id of all the directors.
- Any of the Utility bills (electricity bill, gas bill, water bill, etc.)
- Rent agreement and NOC from the landlord in case of rented office.
Step 1: Selection of the company name.
Finalize a brand name for your company and check the availability of the name on the website of the Ministry of Corporate Affairs
Step 2: Obtain a Digital Signature Certificate (DSC) for the directors.
It is mandatory for all the directors to have a DSC that can be used to file the registration form online. It can also be used to sign the ROC compliance e-forms and income tax returns in the future.
Step 3:Obtain the Director Identification Number (DIN)
It is a unique identification number for all the former directors of the company.
Step 4:Get company name approval
An application is filed to get the company name approval in a prescribed form RUN that stands for Reserve Unique Name under the ministry of corporate affairs.
Step 5:Submission of SPICe form along with Memorandum Of Association and Article Of Association.
Get your registration certificate after the submission of all the required documents along with the SPICe form.
Swarit advisors make it sure to provide you the best legal services to make your experience comfortable and convenient. Private limited company is one of the most preferred business structures by the new startup business in India due to some amazing benefits of no capital requirement for the registration and limited liability protection for the shareholders and directors. To get your private limited company registration now or to know more about the business structure of private limited company in India send a mail to Swarit advisors at firstname.lastname@example.org or do visit their website www.swaritadvisors.com.