Overview 

A private company is one of the most preferred forms of doing business or providing services, which is regulated by the MCA (Ministry of Corporate Affairs) under the Companies Act 2013. It is easy to recognize the private company with the name ending with Pvt. Ltd. /Private Limited/ (P) Ltd. In the course of time, it has been one of the most chosen form of doing business in India. 

Registration of your business as a Private Limited Company opens new doors of opportunity, as it gives identification to your business, legal protection, and fund-raising options from various sources such as banks angel investors, venture capitalists,s and private equity investors.
 

Why 

• Limited Liability: - It is one of the most liked features of the private limited company, therefore most people prefer this form of company.  Limited liability in the company means the liability of the person who invests in the company will be limited. 

• Separate Legal Entity: - The separate legal entity features show that you and your company, both have separate identities in the eyes of law, the company can sue and can be sued in its own name not shareholders’ and directors’.

• Easy Exit and Transferability: - All the shareholder of the company have the freedom to exit when they wish to, they can easily exit by transferring their shares during the lifetime of the company, which is pretty easy.

• Borrowing Capacity: -Being a legal person company has various source to raise or collect funds in the requirement, some of the sources can be private equity, angel investor, venture capitalist, debts through banks and FIIs.

• Investment Ready: - Most of the investors prefer to invest in private limited companies while looking for investment, therefore private limited company is considered to be investment ready form of business, it can also get registered under DPIIT start-up India under MCA.

Documents 

1. Identity proof (PAN card/ Passport copies for foreign nationals)

2. Address proof (Bank statement/electricity bill/ Mobile bill/ Telephone bill)

3. Contact details of Company, First Directors and subscribers (Phone number and Email ID)

4. Education qualification of First Directors and subscribers

5. Proof of Registered office - copy of electricity/Gas/mobile bill (not older than two months) along with NOC from landlord.

6. Draft documents for spice+

Process

The legal procedure for private limited company registration is as follows:-

1. Company Incorporation

2. Application for DIN

3. PAN application

4. TAN application

5. GSTIN application

6. EPFO registration

7. ESIC registration

8. Profession tax registration (Only for Maharashtra)

Fees

The fee amount of the private limited company registration depends on the amount of capital, as there could be other charges too such as stamp duty charge.

Timeline

Time span for the complete private company registration is about 10 to 12 working days from the end of the department.

FAQs