Overview - Online Company Registration in India
Setup private limited company in india is way of start business in india and private limited company registration is one of the highly recommended way in india. With Private Limited company this process offers limited libility for it's shareholders with certain restrictions placed on the ownership.
An LLP company also has partners, who own and manage the business. Wheres in Private limited company registration, directors may be different from shareholders.
Benefits of Private Limited Company Registration
Registering a company offers many benefits. A registered company increases the authenticity of your business. It helps your business
- Shield from personal liability and protects from other risks and losses
- Attract more customers
- Procure bank credits and good investment from reliable investors with ease
- Offers liability protection to protect your company’s assets
- Greater capital contribution and greater stability
- Increases the potential to grow big and expand
Benefits of Pvt Ltd Company Registration
Registering a company offers many benefits. A registered company increases the authenticity of your business. It helps your business
- Shield from personal liability and protects from other risks and losses
- Attract more customers
- Procure bank credits and good investment from reliable investors with ease
- Offers liability protection to protect your company’s assets
- Greater capital contribution and greater stability
- Increases the potential to grow big and expand
Checklist for Private Limited Company Registration in India
As defined by the Companies Act, 2013 one must guarantee that the checklist requirements are met without fail.
Two Directors:
A private limited company must have at least two directors, with a maximum of fifteen. A minimum of one of the company's directors must be a resident of India.
Unique Name
The name of your pvt ltd company must be unique. The suggested name should not match with any existing companies or trademarks in India.
Minimum Capital Contribution:
There is no minimum capital amount for a Pvt ltd company. A Pvt limited company should have an authorised capital of at least ₹1 lakh.
Registered Office:
The registered office of a pvt ltd company does not have to be a commercial space. Even a rented home can be the registered office, so long as an NOC is obtained from the landlord.
Steps For Company Registration in India
Company registration in India benefits startups offering them an advantage over those who have not registered. The process of registering your company is complex and involves many compliances. However, you needn’t worry as long as you have FirmDaddy. Our professionals can help you with every step of the private limited company registration process.
Step 1: RUN Name Approval
The first step is to register your company's name. To reserve the company name, a request for approval of the company name must first be made to the Ministry of Corporate Affairs (MCA). One or two names with business aims may be presented in the name approval application. One or two more names may be submitted if a name permission is declined. All name approval requests are typically approved by the MCA in less than 5 business days. Our experts will help you choose the best name for your company and help in registering it with the government.
Step 2: Directors' Digital Signature Certificate (DSC)
Regular signatures are not acknowledged by the MCA in India. A digital signature certified by an Indian certification authority must be used on all signatures for filings with the MCA. Therefore, before incorporation, digital signatures from the Directors are mandatory.
FirmDaddy will secure a DSC for the Directors from a recognised certifying body. The Directors must submit a copy of their identity documentation and successfully complete a video KYC process in order to receive a digital signature. The provided passport and other documents must be apostilled by a nearby embassy if the Director is a foreign national.
Step 3: Submitting the Company Incorporation Application
Once the digital signatures have been gathered, the incorporation application in SPICe form and all pertinent attachments may be submitted to the MCA. The company's Memorandum of Association (MOA) and Articles of Association (AOA) are filed with the application for incorporation. The Incorporation certificate and PAN of the company are issued if the MCA deems the incorporation application to be complete and acceptable. The MCA typically accepts all incorporation petitions in less than five working days.
Private Limited Company Compliances
Once a company is registered in India, it must periodically maintain a number of compliances in order to avoid fines and legal action. After company registration, a company would need to comply with the following requirements, among others:
Auditor Appointment: Within 30 days of incorporation, every Indian company must appoint a practising, certified, and registered Chartered Accountant (CA).
Director DIN KYC: Each year, DIN KYC is required of everyone who holds a Director Identification Number (DIN), which is given during the incorporation process and verifies the phone number and email address on file with the MCA.
Commencement of Business: The shareholders of the company must deposit the subscription amount specified in the MOA within 180 days of incorporation, and the company must create a bank current account. Therefore, in order to receive a business incorporation certificate, the shareholders of a company that is to be established with a paid-up capital of ₹1 lakh must deposit ₹1 lakh into the company's bank account and file a copy of the bank statement with the MCA.
MCA Annual Filings: Every financial year, the MCA must get a copy of the financial statements from each company that is registered in India. A corporation that incorporates between January and March may elect to include the first MCA annual return in the annual filing for the following fiscal year. Forms MGT-7 and AOC-4 are the components of the MCA yearly return. The Directors and a working professional must digitally sign both of these documents.
Income Tax Filing: Each fiscal year, all businesses are required to submit an income tax return using form ITR-6. Regardless of the incorporation date, income tax filing must be completed for each financial year before the deadline. A director's digital signature must be used to digitally sign the company's income tax return.
Requirements to Start a Private Limited Company
Before a firm is incorporated, it must meet a specific set of conditions. The following are the conditions to be satisfied:
1. Directors and Members
As previously stated, a private limited corporation must demonstrate a minimum of two and a maximum of 200 members in order to become legally registered. The Companies Act of 2013 requires this as a legal necessity. The following requirements for directors should be met:
- A DIN issued by the MCA should be carried by each director
- One of the directors must be an Indian resident, which means they must have spent at least 182 days there in the previous calendar year.
2. The Business's Name
The choice of the company's name is an important one. Two factors must be considered by a private limited corporation when choosing a name for itself:
- Name of the principal activity
- Private Limited Company
3.Address of the registered office
The permanent address of the business's registered office must be submitted to the company registrar following the completion of the registration process. The primary location for conducting business and the location where all documentation is kept in the company's registered office.
4. Getting Additional Documents
Every business is required to acquire a DSC that is used to validate the legitimacy of documents submitted electronically. Additionally, credentials from these specialists are required in a business that hires professionals (such as secretaries, chartered accountants, cost accountants, etc.) for a variety of operations.
Comparative List of Different Types of Business Structures in India
| Company type | Ideal for | Tax advantages | Legal compliances |
|---|---|---|---|
| Limited Liability Partnership | Enterprises that focus on services or require little investment | Advantage on depreciation | Company tax returns to be pointed ROC returns to be filed |
| One Person Company | Sole proprietors peeking to limit their liability | Tax holiday for first 3 years under Startup India Higher advantages on depreciation No tax on compensation distribution | Business recoveries to be filed Limited ROC compliance |
| Private Limited Company | Companies that have a high turnover | Tax holiday for first 3 years under Startup India Higher advantages on depreciation | Business tax returns to be filed ROC returns to be filed An audit is mandatory |
| Public Limited Company | Companies with a an increased turnover | Tax exemptions under | Business tax returns to be filed. Compulsory Audits |
Documents Required for Online Company Registration
In India, private limited company registration cannot be done without proper identity and address proof. Listed below are the documents accepted by the MCA for the online company registration process:
Identity and Address Proof
- Scanned copy of PAN card or passport (foreign nationals & NRIs)
- Scanned copy of voter ID/passport/driving license
- Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
- Scanned passport-sized photograph specimen signature (blank document with signature [directors only)
Registered Office Proof
- Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
- Scanned copy of notarised rental agreement in English
- Scanned copy of no-objection certificate from the property owner
- Scanned copy of sale deed/property deed in English (in case of owned property)
Note: Your registered office need not be a commercial space; it can be your residence too.
Why FirmDaddy?
The private limited company registration process is completely online, so you don't even have to leave your home to get your entity registered. At FirmDaddy, we complete the company incorporation process within 14 days.
FirmDaddy company registration package includes:
- DIN and DSC for two Directors
- Drafting of MoA & AoA
- Registration fees and stamp duty
- Company incorporation certificate
- Company PAN and TAN
- Zero balance current account - Powered by DBS bank
With this, you will be well on your way to forming your own pvt ltd company. It is recommended that you consult with the experts and make the finest decision for smoother growth.
The Glossary
Amendment
An addition to, deletion from, or a change of existing provisions of the articles of incorporation of a domestic corporation.
Board of Directors
The governing body of a corporation who is elected by shareholders. The directors are responsible for selecting the officers and the supervision and general control of the corporation.
Certificate of Incorporation
The title of the document filed in many states to create a corporation. Also known as the articles of incorporation.
DSC
The DSC (Digital Signature Certificate) is an instrument issued by certifying authorities by which you can sign electronic documents. As all documents needed are electronic.
DIN
Director Identification Number
Dissolution
The statutory procedure that terminates the existence of a domestic corporation.
Incorporation
The act of creating or organizing a corporation under the laws of a specific jurisdiction.
Limited Liability Company (LLC)
An artificial entity created under and governed by the laws of the jurisdiction in which it was formed. Limited liability companies are generally able to provide the limited personal liability of corporations and the pass-through taxation of partnerships.
Limited Personal Liability
The protection generally afforded a corporate shareholder, limited partner or a member of a limited liability company from the debts of and claims against the company.
Name Reservation
A procedure that allows a company to obtain exclusive use of a corporate name for a specified period of time.
Registered Office
The statutory address of a corporation. In states requiring the appointment of a registered agent, it is usually the address of the registered agent.
FAQs on Private Limited (Pvt Ltd) Company Registration Online In India
The Registrar of Companies (ROC) across India expects applicants to follow a few naming guidelines. Some of them are subjective, which means that approval can depend on the opinion of the officer handling your application. However, the more closely you follow the rules listed below, the better your chances of approval. First, however, do ensure that your name is available.
If you have all the documents in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar.
No, company formation in India is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.
All directors must provide identity and address proof, as well as a copy of the PAN card (for Indian nationals) and passport (for foreign nationals). No-objection certificate must be submitted by the owner of the registered office premises.
Yes, so long as the annual compliances are met, the private limited company will continue to exist. If you do not comply with the requirements, it will go dormant, until it is struck off the register altogether.
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Yes, a private limited company must hire an auditor, no matter what its revenues are. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs of rupees and even lead to the blacklisting of directors.
These documents contain the rules, vision and mission of your organisation, and define, among other things, the exact business and the roles and responsibilities of shareholders and directors.
Yes, a minimum of two directors are needed for a private limited company. The maximum members can be 200. You can register as a one person company, if you are the sole owner of the company.
There is no minimum capital required for starting a private limited company.
Yes, a salaried person can become the director in a private limited, LLP or OPC private limited company. One needs to check the employment agreement if that allows for such provisions. In a lot of cases, the employers are quite comfortable with the fact that their employee is a director in another company.
No, one cannot convert an LLP into a private limited company as it is not a MCA. The Limited Liability Partnership Act, 2008 and the Companies Act, 2013, both don’t have any provisions on conversion of the LLP in a private limited company. However, if one wants to expand their business they can register a new private limited company with the same name. The LLP company needs to just issue a no objection certificate.
FirmDaddy can integrate a private limited company in 14-15 days. The time taken also depends on the relevant documents provided by the applicant and the speed of approvals from the government. To ensure a speedy registration, kindly pick a unique name as the proposed company name and also ensure that you have all the required documents prior to the starting of the registration process.
Yes, the company can be registered at the owner's home address. A copy of the utility bill is required to be submitted.
Yes, it is good to register a family member as a partner. At a later stage one can change this or transfer shares of the directors.
Yes, a NRI or a foreign national can become a director of a private limited company. He or she must obtain a DIN from the Indian RoC. They can also hold a controlling stake in the company. As long as at least one director on the board of directors is an Indian resident.
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