PSD FILINGS

What is a Private Limited Company?

A private limited company is a type of business structure that combines the features of limited liability with the flexibility of a private entity. A private limited company encompasses the following features :

The liability of the shareholders is limited to the amount invested in the company.
A private limited company is considered a separate legal entity distinct from its shareholders.
Unlike public companies, shares in a private limited company are not openly traded on the stock market, fostering a controlled and closely-knit ownership environment.
Start your entrepreneurial journey by establishing your own business.
The process includes obtaining a DSC, DIN, and filing the necessary documents with the Registrar of Companies (ROC).
Once registered, the company gains the advantages of structured corporate governance, which includes holding regular board meetings, maintaining proper records, and complying with statutory requirements.

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Private Limited Company Registration Overview

A crucial aspect is the operational flexibility, facilitating streamlined decision-making processes. The presence of a board of directors overseeing strategic decisions and overall management is essential.

Company Limited by Shares :
This prevalent form limits members' liability to the unpaid amount on their shares. In liquidation, shareholders are liable solely for the nominal value of their shares.

Company Limited by Guarantee :
Diverging from share capital, this type relies on members offering a guarantee, specifying their contribution in case of winding up. Common in non-profit and charitable sectors.

Unlimited Company :
Unrestricted by member liability limits, each member assumes personal responsibility for the company's debts. Though less common due to heightened shareholder risk, it allows greater financial flexibility.

Required Documents for Private Limited Company Registration

Registering a Private Limited Company necessitates several essential documents. Firstly, proof of identity and address, such as PAN cards and utility bills, is mandatory for all directors and shareholders. Additionally, passport-sized photographs and Aadhar cards are required. For the registered office, documents like electricity bills and rental agreements, along with a No Objection Certificate (NOC) from the property owner, if applicable, are essential.

PAN Card:

Shareholders and directors must provide their PAN cards. Foreign nationals are required to present a valid passport for necessary documentation and compliance in business and financial transactions.

ID Proof:

Shareholders and Directors need to provide identity proof, including Aadhar card, and choose from options like Voter ID, Passport, or Driving License for verification and compliance purposes.

Director’s Address Proof

Shareholders and directors must provide their address proof, telephone bill, electricity bill, or bank account statement. These documents authenticate the residential addresses of the company's key individuals.

Photograph:

Attach recent Passport size photographs of Shareholders and Directors, meeting the requirement. Ensuring the images are up-to-date is crucial to comply with this essential documentation prerequisite.

Business Address Proof:

Proofs of business address, like EB or telephone bill of the registered office, are required to validate the address that is essential for various business transactions and compliance purposes.

NOC:

Secure a No Objection Certificate (NOC) from the owner(s) of the registered office, acknowledging their consent for the specified purposes. This document is crucial for official procedures and compliance.

Rental Agreement:

For companies with a registered office in a rented office, commercial, or other leased premises, rental agreement submission is mandatory for documentation and verification purposes.

NRI docs:

Director documentation for foreign nationals or NRIs needs to be apostilled or notarized. This crucial step ensures the legality and acceptance of the documents in various official processes and transactions.

Private Limited Company Registration Process

Get Your Business Incorporated. List below are the documents required for incorporation.

STEP : 1

Apply for a DSC : A (DSC) is the digitalized signature of shareholders/directors, encrypted into a USB token for secure transactions. Without DSC, filing forms with the (ROC) and the MCA is not possible.

STEP : 2

Director Identification Number : Acquiring the Director Identification Number (DIN) enables the submission of application forms to the Registrar of Companies (ROC) after obtaining the Digital Signature Certificate (DSC).

STEP : 3

Name Availability Checking : During the name availability check, it is vital to ensure the company name stands out, avoiding any similarities with existing companies or trademarks.

STEP : 4

Documentation : Various documents, including the Memorandum of Association (MOA) and Articles of Association (AOA), are required for incorporation. Verification by a Chartered Accountant is mandatory.

STEP : 4

Issue of Certificate : Upon approval, an incorporation certificate is issued, specifying the allotted PAN & TAN, and a Corporate Identity Number (CIN) is assigned as per Ministry of Corporate Affairs records.

Benefits of a Private Limited Company

The advantages of a Private Limited Company include limited liability for shareholders, providing protection for personal assets. This business structure fosters easier access to funding, as shares can be issued to raise capital.

Enhanced Credit Access

Private limited firms gain credibility, enhancing credit accessibility.

Global Performance

Accessing bank loans becomes easier for private limited companies.

Liability Limitation

This protects the business owners from risks, losses, and liabilities efficiently

Ownership Transfer

Furnishes enhanced security measures and augmented financial assistance provisions.

Tax Advantages

Qualifies for tax deductions, exemptions, and government schemes diversely.