Company Registration

An Overview of Company Registration

In India, setting up a pvt ltd company is one of the most sought-after methods to start an enterprise. Private Limited Company registration follows the Companies Act, 2013 and the Ministry of Corporate Affairs (MCA). The Private Limited Company provides limited liability and legal protection for its shareholders. It's a form of corporate organization that gives a company an independent legal identity distinct and legal protection from its owners from any other legal entity. Private Limited Company doesn't have any relation with the public. They cannot ask for collateral from either public or private sectors. In this kind of business, there is no obligation for individuals to transfer shares that protect taking overs made by Private Limited Companies from big companies.

A private limited company registration procedure is crucial as it confers legitimacy to your Company's structure. If you're looking for Private Limited Company Registration in India, You can trust Legalsalah. Legalsalah will help you give all the information you need about Private Limited Company Registration.

Benefits of Company Registration in India

A Private Limited Company is one of the most popular legal forms of the entity that allows you to conduct business to earn money and benefit from the advantages of an incorporated entity. The following are the benefits of having a Private Limited Company Registration in India:

  1. More Credibility Based on their accountability to the authorities and the public, Private Limited is more credible to its customers and helps the development of a broader customer base.
  2. Separate Legal Entity: A Private Limited Company (Pvt. Ltd.) can act as an independent legal entity with all rights to sue or be sued. A legal entity and a juristic person as defined by the Act. A juristic person refers to a person who isn't an actual person. So a company has substantial legal rights and can have property and debts. Directors or Shareholders of the Company are not liable to the Company's creditors for these obligations. Thus, Private Limited Companies are not responsible to creditors. A Private Limited Company is a legal entity distinct from its members (Shareholders and directors).
  3. They are raising Capital, Although Private Limited Company Registration comes with the requirements for compliance. It is a preferred choice for entrepreneurs since it lets them raise capital via equity and expand while reducing risk.
  4. Perpetual existence An Private Limited Company in India has an ongoing existence. As a distinct legal entity that is a separate legal entity, the Company is not affected by the demise or members' departure. It remains in existence regardless of changes to the membership—It is among the essential characteristics of a business.
  5. Capacity for Borrowing A business is more likely to borrow funds. It can issue debentures, secured and unsecured deposits, and take payments from public institutions. Banks and financial institutions prefer to offer significant financial assistance to companies instead of Partnership Firms or Proprietary.
  6. Simple Transferability of Shares Shares in a Private Limited Company are transferable by the shareholder to anyone else. Transferring shares is more straightforward than moving interest in a company by a Proprietary Concern or a Partnership. Filling out and signing a share transfer form and handing over the buyer of shares with a share certificate is a simple way to transfer shares.

Checklist for Registering a Company in India

  • Unique and meaningful name The name should not be a match for any existing entities and should not contain offensive words harmful to the general public. The terms of the Company must be in line with the objectives and goals of the Company and should include the words "Private Limited";
  • The minimum capital There are no minimum capital requirements for companies. Shareholders or members of the Company are required to contribute to it in the proportion of the shares they hold;
  • Minimum Directors Private Limited companies have to have a minimum of two Directors and up to 15, and at minimum, one Director of the Company must reside in India.
  • A minimum of two shareholders is required—up to 200 shareholders as in the Companies Act, 2013.
  • A registered office is a place where a corporation does not require a commercial space. Even a rental home could as an office.

Documents Required for Company Registration

Here are some essential documents that are required to register a Private Limited Company Registration:

  • The documents must be by Directors as well as Shareholders (Indian nationals) for the Company:
  1. PAN Card;
  2. Government Identity Proofs like Aadhar Card or voter ID as well as Driving License;
  3. Latest Bank Statement;
  4. Current Utility Bills like mobile bills, electricity bills or gas bills;
  5. Latest passport size photographs;
  6. An affidavit of a stamp paper has to be provided by each of the

  • The documents that must be by Directors as well as Shareholders (NRIs) in the Company:
  1. Passport;
  2. ID Proof: It could be a Driver's License, Residence Card or Bank Statement, for example.
  3. Latest Bank Statement;
  4. The most recent utility bills (not longer than two months);
  5. Photos of passport size
  6. Specimen Signature.
  • Registered Office Proof:

  1. If the office of the Director or Shareholder in the Company, the most current electric bills, gas invoices or mobile bill that is in on behalf of the Shareholder or Director is necessary;
  2. Additionally, a Sale Deed in the case of property owned by the owner;
  3. A notarized rental agreement in English is also required.

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