What is the Registration Procedure for a Private Limited Company?

A private limited company is primarily defined as a business entity owned by private stakeholders. Section 2 (68) of the Companies Act, 2013 says: “A Company holding a minimum paid-up share capital as may be prescribed, should stick to the following articles:

(i) limits the number of its members to two hundred except when it is a One Person Company

(ii) limits the right to transfer its shares

(iii) forbids any invitation to the public to issue any company securities.”

Private Limited Company Registration

Since there are two key characteristics, the limited liability of the owner and restricting shareholders from publicly trading shares, a private limited company enjoys the fact of sustaining itself as a completely free business entity.

Let’s first talk about the benefits you can obtain by registering your entity as a Private Limited Company before diving into the process of Private Limited Company Registration.

Private Limited Company Registration Process in Mumbai

• Step 1: Applying for a Digital Signature Certificate
• Step 2: Applying for Director Identification Number
• Step 3: Conduct a search to verify the availability of the business name
• Step 4: File the e-Memorandum of Association (MLA) and EAOA
• Step 5: Apply for the PAN and TAN of the organization
• Step 6: Get a Certificate of incorporation from the Registrars of Companies with PAN and TAN
• Step 7: Open a bank account under the company name

Note: It is also advisable to consult a professional before going ahead with the complex procedures for any legal business exercise.

Advantages of Private Limited Company Registration

1. Limited Liability: Protects personal assets of shareholders from business debts.
2. Credibility Boost: Enhances trust among investors and partners.
3. Capital Flexibility: Ability to issue shares for easy capital infusion.
4. Perpetual Existence: Business continues regardless of changes in ownership.
5. Regulatory Compliance: Adherence to strict regulations ensures transparency when enrolling for Pvt Ltd company registration.
6. Investor Attraction: Appeals to potential investors due to structured governance.
7. Efficient Decision-Making: Centralized management fosters quick and effective choices.
8. Sustainability: Offers a secure and stable environment for long-term growth.

In conclusion, registering a Private Limited Company involves several steps, including obtaining Digital Signature Certificates (DSC), filing for Director Identification Number (DIN), selecting a unique company name, drafting the Memorandum of Association (MOA) and Articles of Association (AOA), and finally submitting the necessary documents to the Registrar of Companies (ROC). It’s crucial to adhere to the regulatory requirements and ensure all documentation is accurate and complete to successfully establish the company.

Run by a team of dedicated and professional chartered accountants, cost accountants, company secretaries, system auditors, and management graduates with significant experience in big, recognized audit firms, Shah & Doshi’s exceptional advisory services will offer the apt guidance to start your pvt limited company venture along with funding formalities. Join hands with us today and leave all your worries regarding legalities and documentation on the shoulders of our trusted experts.