We are in an era where people are desirous of starting their own ventures rather than doing a job. Especially when we talk about India, it's like opening a business has become a new trend.
Furthermore, people in India have several options out of which they can choose any one business structure. Private Limited Company Registration is one such business registration which is much preferred by the start-ups.
Reasons why people choose to register their business as Private Limited Company are many. Some of them include a simpler registration process, easy to form, etc. Reports say that more than 90% start-ups in India choose private limited company registration over other business forms.
So, in this piece of article, we will detail the several aspects of a private limited company, including its registration process. Let's get started-
Private Limited Company Registration is the most prominent business form in India, which is done with the MCA (Ministry of Corporate Affairs) under the Companies Act, 2013.
Private Limited Companies are easy to start; start-ups can protect their personal assets with limited liability, reduced audit risk, and tax, high chances of securing funds through a bank or other resources.
As a result, start-ups are more inclined toward starting their company as a private limited. Apart from these, there are various other advantages people can avail with such business structures. We have described the same later in the blog.
Anybody who is desirous of registering his/her company as private limited in India must fulfill the following minimum criteria:
Documents are the most important requirements for Company Registration. Therefore, if you’re willing to register, then you must submit the following documents:
For private limited company registration, one needs to follow the steps as described below:
Digital Signature Certificate (DSC) is required to be obtained for all the directors. One can apply for the same on the MCA with the concerned authority. Later on, this DSC can be used for several other purposes.
The second most essential step to company registration is choosing a unique company name. The name should be such that it adds value to the company and its work. Moreover, it must not match with any of the existing company names.
One can opt for company name approval through RUN service, which stands for Reserve Unique Name. Here, you can propose a maximum of two names. Then, based on the eligibility and availability of the name, the RoC (Registrar of Companies) will approve any one of them.
After the name approval, the applicant needs to file the SPICe form within 20 days.
SPICe stands for Simplified Proforma for Incorporating Company Electronically. Basically, it’s a form for company incorporation. Apart from this, SPICe is a single form that can be used for several purposes such as company name approval, obtaining DIN, company’s incorporation, CIN, PAN & TAN, etc.
So, for obtaining company registration, you need to file SPICe along with the required documents, including those described below:
After the submission of documents and SPICe, the Registrar will inspect them and find if they are valid and complete. If the RoC is satisfied, he will grant the certification of company registration
On the receipt of the certificate of the company incorporation, you are supposed to open a bank account in the company's name. Then, you can initiate the company's process.
A private limited company is considered as one of the best business forms in India because of the following benefits that it offers to the applicant: