WHAT IS PRIVATE LIMITED COMPANY REGISTRATION?
Private Limited Company is the most favoured form of business entity in India having perpetual succession with least of two directors & shareholders, the maximum being 15 and 50 respectively, is a must for private limited company registration. It is very convenient to organize and operate a private limited company as a business and can be commenced immediately. There is no minimum paid-up capital required to start a company. It also increases the credibility of the business thus, enhancing the future growth of the company.
Many start-ups and companies consider this form of a business entity as it permits capital funding to be raised easily; it also limits the liability protection to its shareholders and enables them to offer employee stock options to motivate their employees. Availability through a bank loan, equity or debt funding makes a private limited company the most recommended legal structure of many small and medium-sized business entities that are family-owned or professionally run in India.
REASONS TO OPT FOR A PLC
A private limited partnership offers legal protection to its shareholders but restricts its ownership. It is relatively convenient to manage and run the company with a possibility of expansion for growing companies. Also, it is easy to dissolve and wind up the company.
DOCUMENTS REQUIRED FOR PVT LTD COMPANY REGISTRATION IN MUMBAI
- Copy Of PAN OR Passport (For NRI’S)
- Copy Of Voter’s ID OR Passport OR Driver’s License
- Copy Of Latest Bank Statement OR Electricity Bill OR Telephone Bill
- Passport sized photographs
- Specimen Signatures
- Copy Of Latest Bank Statement OR Electricity Bill OR Telephone Bill
- Copy Of Notarized Agreement of the rent (English)
- Copy Of Property owner’s NO-Objection certificate
- In case of owned property, Sale deed (English)
PVT LTD COMPANY REGISTRATION PROCEDURE
In order to get a private limited company registration in Mumbai recently, the Ministry of Corporate Affairs (MCA) came with new rules for the Incorporation of a Company under the Companies Act, 2013 by introducing e-form INC-32 under the SPICE scheme in one single step.
*SPICE – Simplified Proforma for Incorporating Company Electronically.
The SPICE form was introduced by MCA with a motive to prepare MOA & AOA electronically (E- MOA or E-AOA). Due to this amendment, the manual preparation of MOA & AOA & physical signature by the concerned persons will not be required.
This form can be used for the following:
Application of DIN (up to 3 Directors)
Application for the availability of Name (Only One)
No need to file a separate form for the first Director (DIR-12), the address of the registered office (INC-22), PAN & TAN.
*E-MOA – Form INC-33
*E-AOA – Form INC-34
DSC of every subscriber is Mandatory. The subscribers & witnesses shall affix their digital signatures to the E-MOA and E-AOA.
The approval of DIN, Name, and Incorporation will usually take 1-2 days.
INC-32 will require Professional Certification.
Also, it is mandatory to file & upload PAN & TAN applications on the MCA website.
Eligibility for Private Limited Company Registration
The following criteria are considered for the eligibility of Pvt Ltd Company Registration,
- Number of Directors
For private limited company registration, the company should have a minimum of two directors or shareholders and a maximum of 150 to 200, respectively. One of them must be an Indian citizen.
- Authorized Capital
During Pvt Ltd Company Registration, there is no specific requirement for authorized capital. The company is allowed to choose an amount suitable to the business needs.
- Name Availability
It should be ensured that the proposed company name is unique and complies with the Ministry of Corporate Affairs guidelines.
- Registered Office
While registering for a private limited company, the company must have a registered office address in India for receiving official communications.
- Digital Signature Certificates
Also called DSCs, they are necessary for the online filing procedure of the company’s Directors and Shareholders.
- Director Identification Number
For Private Limited Company Registration, directors must obtain a Director Identification Number (DIN) from the Ministry of Corporate Affairs.
Why Partner with Shah and Doshi for Private Limited Company Registration in Mumbai?
Shah and Doshi is one of the trusted names in the field of business consultancy and registration services. Based in Mumbai, we offer professional Audit and Tax Consultancy Services handled by a team of Chartered Accountants, Company Secretaries, Cost Accountants, System Auditors, and Management Graduates with years of professional experience. The financial expert team at Shah and Doshi understands diverse business processes, determines issues and strives to provide an ideal and realistic solution to our valuable clients. Along with private limited company registration we offer a wide range of services that includes various Incorporation, Registrations, ROC Compliances, Tax Compliances, LLP Registration, Audit Services, GST Return Filing, Retainership Services, Assessment, Scrutiny and many more. Partnering with Shah and Doshi for Private Limited Company Registration in Mumbai will ensure a hassle-free experience and legal compliance for your business.
Connect with us today to initiate the business registration journey!
FAQ's
The requirements for a company to get private limited company registration are:
– The number of employees in the company must be between 2-200.
– The company should have at least two directors and two shareholders to get Pvt ltd company registration.
– Each director should have a Director’s Identification number
– A pan card copy of the directors and shareholders will be needed along with the passport copy of the NRI subscriber.
There are various advantages that a company can get from Pvt ltd company registration in Mumbai. Apart from limited liability and minimal statutory compliances, private limited company registration in Mumbai offers the following advantages:
– Separate Legal Entity
– Uninterrupted existence
– Easy transferability of shares
– Ability to sue and be sued
– Owning property and dual relationship
Borrowing capacity
For an organisation to get Pvt ltd company registration in Mumbai, there should be a minimum of two shareholders with non-transferable shares and a maximum of 200. In order to form a private limited company, there should be a minimum share capital of rupees 10,000. In India, there are no minimum monetary requirements for incorporating private or public companies.
A Private Limited Company is a type of corporation/company owned by a small group of people known as shareholders. It is governed by the Ministry of Corporate Affairs and is incorporated under the Companies Act 2013. This type of company formation is often the go-to option for many businesses as it provides numerous benefits to its directors such as limited liability which means that if the company defaults, the bank or creditors can only sell the company’s assets and not the director’s personal assets.
For private Limited company registration, a minimum of two people and a maximum of 200 people are required who must act as shareholders or directors of the company. All the directors should have a Director Identification Number given by the Ministry of Corporate Affairs. It is mandatory that one of the shareholders is an Indian citizen and a resident in India for 182 days (about 6 months) in the previous calendar year. If the shareholders are foreigners, they need to submit their passports and other documents.
Paid-up capital refers to the actual sum of money that a business acquires through the issuance of shares to its shareholders. As the company cannot issue shares over the allowed capital, it is always less than the authorized capital. The paid-up capital is used to control the company’s expenses.
Under the Companies Act 2013, the minimum paid-up capital for private limited company registration was 1 lakh however, under the Companies Act 2015, there is no minimum paid-up capital required to form a Private Limited Company though 1 lakh authorized capital is still needed.
If a Private Limited company makes less than Rs.400 crores in the previous year, a 25% tax is levied. If the turnover is more than Rs. 400 crores, 30% tax is levied with a 7% surcharge if the net taxable income is 1 crore to 10 crores and 12% if it is more than 10 crores. In addition, a slew of new corporate tax cuts was introduced in Budget 2019. Companies can now also opt for the new rates of 22% and 15% but a 10% surcharge will be levied.
After pvt ltd company registration, you should make sure that you get the most out of your investment. One way to do this is by focusing on the minimum turnover. Minimum turnover refers to the minimum revenue you should make to be considered operational by the government. It is calculated by dividing the total turnover of your company by the number of days it has been in operation.
For a Pvt Ltd Company, there is no minimum turnover required.
When a private limited company is first set up, the first shareholder decides how many shares can be issued but as per the government, there is a minimum requirement where the company must issue at least one share of stock. There is no upper limit on the number of shares that can be issued unless the shareholders choose to add restrictions while incorporating the company.
Private limited companies are owned by shareholders and managed by directors. During pvt ltd company registration, there has to be a minimum of two members. The maximum number of members is limitless. The liability of the members is limited to the number of shares they own. This means that if the company is dissolved, only the LLP assets can be used to clear debts. The partners have no personal liabilities so they can still operate as credible businessmen.
The minimum and maximum number of directors that a business must keep during its active term is set by the Companies Act of 2013. In a private limited company, the minimum number of directors required for private limited company registration is 2 while the maximum number of directors required is 15. According to Section 149(3) of the act, every company shall have one director who has stayed in India for a period of not less than one hundred and eighty-two days in the previous calendar year.