Private Limited Company
Ensure longevity. Form a private limited company to fortify your business for the future.
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A Private Limited Company, the ideal choice for rapidly expanding enterprises seeking capital infusion, stands as the most reputable business structure in India. With registration typically completed within 10-15 working days, the government issues a certificate of incorporation as the fundamental document.
Following registration, simply initiate a bank account, allocate the share capital, and commence operations. Regardless of the registered address, a Private Limited Company can operate across India without constraints.
Startups and SMEs looking for carrying business with minimal legal formalities
Government
Fees
Professional
Fees
Digital Signature for 2 Partners
DPIN for 2 Partners
Name
Approval
MOA &
AOA
Limited Liability: Shielding directors from personal liability, this structure confines obligations to subscribed shares.
Swift Changes Online: Alter company constitution, directors, or shareholders online within hours.
Preferred by Investors: With perpetual succession, equity funding ease, and reliability, banks and investors favor Private Limited companies.
Credible Choice: Highly reputable, ideal for attracting top talent, especially in the IT industry.
Efficient Fundraising: Unique issuance capability for Equity, Preference Shares, and Debentures makes it perfect for entrepreneurs seeking funds.
Simplified Online Process: Entire company formation is completed online in just 10-15 days. No office visits required.
Foundation for Subsidiaries: A Private Limited Company can hold shares in others and simplify group company formation.
Application For Digital Signature Certificate (DSC) and allotment of Director Identification Number( DIN ): First of all, the Directors have to apply for Digital signature and they will be allotted a DIN. Digital signature is an online signature used for filing of forms and DIN refer to Directors Identification number issued by MCA. If the directors already have a DSC and DIN, then this step can be skipped
Name approval : You need to provide 3 different options for your company name to MCA, of which one will be selected. Names provided should ideally be unique and suggestive of company business.
MOA & AOA, PAN & TAN submission: Once name is approved, one needs to draft Memorandum of Association and Articles of Association. Both MOA and AOA are filed with the MCA along with the shareholding statement. PAN is Permanent Account Number and TAN is Tax Deduction and Collection Account Number (TDS).
Get incorporation certificate : It typically takes 10-15 days to form a Private limited company and get the Incorporation Certificate. Incorporation certification is a proof that company has been created. It includes your CIN number, PAN & TAN.
Apply for Bank account: Then you need to apply with a bank to open your bank account.
Preparation of documents – 2 days
DSC Application – 2 days
Name Approval through RUN – 3 days
Filing of form – 3 days
Approval – 5 days
Copy of PAN Card of directors
Passport size photograph of directors
Copy of Aadhaar Card/ Voter identity card of directors
Copy of Rent agreement (If rented property)
Electricity/ Water bill (Business Place)
Copy of Property papers(If owned property)
Landlord No Objection Certificate (NOC ) (Format will be provided)
Minimum 2 Shareholders
Minimum 2 Directors are required
Minimum Rs. 1 Lac Share Capital
DIN for all the Directors
Atleast one Director should be an Indian Resident
The name of your company is very important. It is the first impression to your buyers, suppliers and stakeholders. It should, therefore, be relevant, suggestive and attractive. There are various factors that you should keep in mind while naming your company.
Short & Simple: The name should be concise and not be too long. People should be able to pronounce it easily and they should be able to remember your company’s name the first time they hear or read it.
Meaningful: The name of your company should be related to your business. It should fit the company’s branding. For example, Infosys refers to information systems or Information technologies.
Unique: Name of your company should not be same or identical to an existing company or trademark. You should ideally avoid plural version e.g., “Flipkart’s” or changing just letter Case, spacing or punctuation marks in an existing company name.
Suffix: The name of your company should end with the suffix “Private Limited” in a case of a Private limited company.
Should not be illegal / offensive: The name of your company should not be against law. It should not be abusive or against the customs and beliefs of any religion.
Companies with Gross receipts more than Rs. 400 crore
Tax would be levied @30% + 4% Cess + Surcharge at applicable rates.
Companies with Gross receipts up to Rs. 400 crore
Tax would be levied @25% + 4% Cess + Surcharge at applicable rates.
Note: The domestic companies can alternatively choose to pay tax under the following reduced rates
Section 115BAA (domestic companies) – tax would be levied @22% + 4% Cess + 10% Surcharge.
Section 115BAB (manufacturing companies)- tax would be levied @15% + 4% Cess + 10% Surcharge
A Manufacturing generating company can now opt for Section 115BAB as proposed by the Budget 2020.
Certain exemptions and deductions + provisions of MAT (Minimum Alternate Tax) will not be applicable in case of these reduced rates
Open bank account within 30 days
Deposit Share Capital money within 30 days
File commencement certificate within 180 days
Issue Share certificates – within 60 days
Appoint Auditor within 30 days
Professional Tax: This is mandatory registration for all companies and commercial establishments. The professional tax registration should be taken for all the directors and the company.
GST: If your business is providing services than GST registration is mandatory only if the turnover of your company is above Rs 20 Lakhs. In Case of trading or manufacturing of goods GST registration is mandatory only if the turnover of your company is above Rs 40 Lakhs.
IEC: Import export code is applicable for businesses which are engaged in import and export of goods for trading purposes.
Provident Fund (PF): If you are having more than 10 employees, PF is mandatory
Employee State Insurance (ESI): The ESI scheme is applicable to all factories and other establishments as defined in the Act with 10 or more persons employed in such establishment.
Income Tax Return
TDS Return
GST Return
Professional Tax Return
PF & ESI Return
ROC Compliances
A Private Limited Company is the most common form of corporate business structure owned by minimum 2 members and maximum 200 having limited liability, perpetual succession and which restricts free transfer of its shares.
Any individual holding a valid DIN and who is not disqualified under section 164 of Companies Act, 2013 can become director of a Company.
Any person who wants to take part in the ownership of the company by subscribing to its shares can be a shareholder. Shareholder can be a body corporate as well.
There is no provision in Companies Act, 2013 prohibiting a person to be a director in one Company and an employee in another. Hence a person can be a director and continue his job simultaneously.
Yes, an individual can become director in more than one Company. However Section 165 of the Companies Act, 2013 states the upper threshold for the number of directorships in Companies. The maximum number of Companies in which a person can be a director at the same time is twenty, out of which not more than ten shall be public companies.
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