Private Limited Company Registration

As of now, a private limited company is one of the greatest business structures or entities in India. Standard legal compliance, optimum tax compliance, support finance requirements, limited liabilities for directors/shareholders, increased brand recognition and recommended alternatives for startups and SMEs are the major benefits of a private limited company.

What is a Private Limited Company 

A private limited company is a type of business structure or entity that can legally conduct small, medium, and large-scale business. This sort of corporate entity makes it simple to raise funds and has limited responsibilities.

Requirements for forming a company:

  • Two directors are required at a minimum
  • Proposed Directors' PAN Card Copies [Obtain attestation from a bank manager or a Gazetted officer.]
  • Proposed Directors' ID proof (passport, driver's license, or voter's ID) [Attested by a bank manager or a Gazetted officer]
  • All directors must show proof of current residence (bank statement, utility bill, or cell phone bill) (Self-attested)
  • Proof of the prospective Registered Office's address (energy bill/property tax receipt, if it's a residential property)
  • The owner of the above-mentioned property has given his or her permission.
  • 4 passport-sized pictures of potential Directors

The Procedure for Starting a Business:

  • Registration of Digital Signatures
  • Obtaining Director Identification Number (DIN)
  • Name availing from the Registrar of Companies
  • Drafting of Memorandum (MOA) and Articles (AOA) of Association.
  • MOA and AOA filing
  • Obtaining Certificate of Incorporation

Why register a Private Limited Company?

The following are some of the reasons to form a Private Limited Company:

  • It is a well-known business entity in India.
  • Best way to build an expandable business.
  • It is simple to raise funds and obtain investments from angel investors, private equity investors, and venture capitalists.
  • Because liabilities are limited, it can protect your personal assets.
  • It improves brand recognition for promoters.
  • Recommend for new and emerging businesses.

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