REGISTRATION OF A PRIVATE LIMITED COMPANY

INTRODUCTION

A Private Limited Company (Pvt Ltd) is a well-liked business form that is perfect for entrepreneurs since it provides restricted liability, a distinct legal identity, and increased credibility. Even while creating a Pvt Ltd company in India requires a number of processes, including selecting a company name, acquiring the required digital signatures and director identity, and submitting paperwork, the process can be difficult and time-consuming. This guide outlines the benefits and drawbacks of doing business as a Pvt Ltd firm while streamlining the registration of Pvt Ltd Company.

TMWALA provides knowledgeable support for the duration of the Pvt Ltd registration procedure. We offer end-to-end service, which makes your business setup simple and effective, from selecting a company name to completing paperwork and guaranteeing compliance. Allow TMWALA to assist you in launching your business and guaranteeing a successful launch.

WHAT IS A PVT COMPANY?

A Private Limited Company (Pvt) is a type of corporate structure in which a small number of shareholders privately own the company’s shares, which are not traded publicly. Limited liability protects shareholders from being held accountable for company debts above the amount of their investment. The corporation can only have a maximum of 200 shareholders, and most of the time, other owners must approve the transfer of shares. This structure is a popular option for small and medium-sized firms because it provides a balance between secrecy and restricted liability.

WHAT IS THE PROCESS OF REGISTRATION OF A PVT LTD COMPANY IN INDIA

For entrepreneurs, registration of Pvt Ltd Company in India is a big step because it gives them limited liability, a distinct legal entity, and the capacity to raise money. The registration procedure, nevertheless, can be difficult. To guarantee a seamless registration process, this guide will take you step-by-step.

Step 1: Choose a Unique Company Name\

The first step in the registration of a Pvt Ltd company is to choose a distinctive name. The name must be distinctive in the marketplace and adhere to legal requirements.

• Avoid Restricted Words: Words related to any political party, or any national symbol, or directly related to a religion, or any other word require special approval.
• Ensure Originality: Companies shouldn’t have names that are confusingly similar or identical to each other.
• Check for Availability: To find out if the name you want is available, use the Ministry of Corporate Affairs (MCA) portal.
• Visual Suggestion: Make an infographic that explains the naming conventions and the procedure for reserving names.

TMWALA can help to find the best name for your company and help you get it registered.

Step 2: Obtain Digital Signature Certificates (DSCs)

The online filing of company registration paperwork requires Digital Signature Certificates (DSCs). They function as the digital counterparts of real signatures.

• Purpose: guarantees the integrity and validity of digital documents.
• Types: Individual Class 2 DSCs and company Class 3 DSCs.
• How to Obtain: Apply with identification verification from a DSC issuing body that has been certified.

Step 3: Obtain Director Identification Numbers (DINs)

Individuals who will hold the position of director are given unique identifiers known as Director Identification Numbers (DINs).

• Purpose: monitors the actions of directors.
• How to Obtain: Provide the MCA with proof of address, a passport, and a PAN card.

Step 4: Prepare Necessary Documents

Prepare the following key documents:

• Memorandum of Association (MOA)
• Articles of Association (AOA)
• Other Documents: Add director consent letters, proof of registered office address, and other documents.

Step 5: File the Incorporation Form

File the SPICE (Simplified Proforma for Incorporating a Company Electronically) form online via the MCA portal.

• Online Filing: requires MOAs, AOAs, DSCs, and DINs to be uploaded together with digital signatures.
• Documents Needed: Includes all prepared documents.

Step 6: Obtain Certificate of Incorporation

The MCA formally creates your business as a legal entity by issuing a Certificate of Incorporation after it has been accepted.

• Timeframe: It usually takes a few days to a few weeks.
• Verification: Verification of the certificate is done through the MCA website.

Step 7: Obtain PAN and TAN

For tax purposes, apply for a Tax Deduction Account Number (TAN) and Permanent Account Number (PAN).

• PAN: Used for identification and tax filing.
• TAN: Used for deducting taxes at the source.
• How to Apply: Apply online through the Income Tax Department’s website.

Step 8: Open a Bank Account

Open a corporate bank account for your Pvt Ltd after obtaining your Certificate of Incorporation and PAN.

Bank Account Types:

• Current Accounts: Perfect for companies that do a lot of transactions.
• Savings accounts: These could be utilized to cover startup costs.
• Fixed deposit: Consider fixed deposit accounts if you want to save money over the long run.

Step 9: Obtain GST Registration (if applicable)

GST registration is required if your company’s yearly turnover exceeds a certain threshold.

• Eligibility: The annual turnover should be over ₹40 lakhs (₹20 lakhs in special category states).
• How to Register: The registration can be done through the online GST portal.

FEES FOR REGISTRATION OF A PRIVATE LIMITED COMPANY

Fees for registration of a private limited company differ from state to state, as you can understand it from the table given below:

WHICH DOCUMENTS ARE REQUIRED FOR THE REGISTRATION OF A COMPANY:

Required documents for registration of a private limited company are:

• AOA
• MOA
• Outside the Country body corporate’s incorporation certificate
• a decision made by the international Company
• a statement of advice made by the advertising company
• The interest of the directors from other entities 
• Nominee’s assent
• Identity proof and residential proof
• The Declaration of the unregistered companies
• Digital Signature Certificate

CONCLUSION

Registration of a Private Limited Company (Pvt Ltd) in India is a key step for entrepreneurs seeking to establish a formal business structure with limited liability, a separate legal identity, and the ability to raise capital. The registration procedure involves several steps, including choosing a unique company name, obtaining Digital Signature Certificates (DSCs), securing Director Identification Numbers (DINs), preparing the Memorandum of Association (MOA) and Articles of Association (AOA), and filing the necessary documents online via the MCA portal.

Once these steps are completed, the Certificate of Incorporation is issued, formally recognizing the company as a legal entity. The fees for registration of a Pvt Ldt company in India vary across states, ranging from ₹5,599 to ₹21,099, depending on the location. The question arises which documents are required for the registration of a company, Required documents include the MOA, AOA, director consent letters, and other key paperwork. While the process may seem complex, it ensures that your business is legally compliant and ready to operate, with the right support ensuring a smooth journey from start to finish.

TMWALA is here to streamline the Pvt Ltd registration process for you. From choosing a unique company name to handling all documentation, filings, and compliance, our experienced team ensures everything is taken care of. With TMWALA, you can focus on growing your business while we handle the complexities of registration and legal formalities, ensuring a smooth and hassle-free experience.