Private Limited Company Registration

"Empowering your business with the strength of limited liability - Register your Private Limited Company today with Corporate Raasta Consulting!"

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    What is a Private Limited Company

    Registering a private limited company is highly regarded among new business owners and innovators for its array of benefits. The process is straightforward, typically completed within 7 to 14 days, and comes at a modest cost. Small businesses in India find the regulatory demands quite manageable. To establish a private limited company in India, at least two shareholders and two directors are needed, with the possibility of them being the same people.

    The company can have up to 15 directors and 200 shareholders. Shareholders’ liability is confined to their share of investment, safeguarding personal assets during financial troubles. These companies, recognizable by ‘Pvt Ltd’ or ‘Limited’ in their titles, possess an independent legal status, enabling them to acquire assets, forge agreements, and pursue legal action.

    The blend of shareholder security and restricted public trading of shares renders it ideal for small to mid-sized enterprises, offering a balance between capital input and management authority. Corporate Raasta Consulting provides a comprehensive package for private company incorporation and new company formations in India.

    Corporate Raasta Consulting provides a comprehensive package for private company incorporation and new company formations in India.

    Important Papers Required for Private Limited Company Registration

    An Indian Private Limited Company is a business structure designed for private ownership with limited liability. This arrangement shields the personal assets of the company’s proprietors from its debts and responsibilities. Ownership is usually divided among a select group of shareholders, and the company’s shares are not listed for public trading. Such companies are favoured by small to medium enterprises for their ability to limit liability while offering enhanced management and confidentiality.

    Private limited companies must submit yearly financial reports and adhere to other regulatory filings, ensuring transparency and responsibility to their stakeholders. For entrepreneurs and small business proprietors seeking to safeguard personal assets while retaining business control, a private limited company is often the go-to option.

    Procedure for Private Limited Company Registration Online in India

    Online registration of a private limited company in India is a process that establishes a business with limited shareholder liability and non-transferable shares. It operates as a separate legal entity, capable of engaging in contracts, owning property, and incurring debt independently. A distinctive feature of a private limited company is the private nature of its share transactions, which are not open to the public, offering privacy and discretion to its proprietors. They can selectively admit new shareholders into the business. Small and medium-sized enterprises often prefer this setup for the legal protection it affords its owners, along with possible tax advantages and operational flexibility. Typically, such companies must include ‘Ltd.’ or ‘Pvt Ltd.’ in their names to denote their status. The incorporation process involves several steps:

    • Selecting a service plan
    • Submitting the required documents through our portal or app
    • Our specialists verify the documents and facilitate the signing
    • Receiving the Certificate of Incorporation
    • Ensuring compliance by opting for an annual package
    • Securing related business licenses
    • Guidance on compliance with the Ministry of Corporate Affairs
    • Assistance with opening a company bank account

    How does Corporate Raasta Consulting Help in Private limited company registration?

    CRC’s assistance in registering a private limited company is pivotal. In India, the initial capital needed to register can be as low as Rs. 20, yet it’s common to start with Rs. 1 lakh in both paid-up and authorized share capital. There’s no upper cap on the funds a private limited company can amass, offering the leeway to tailor the capital based on the business’s unique financial targets and operational requisites. Opt for the capital framework that fits your venture’s needs and proceed with assurance. The steps to set up a new company include:

    • Selecting a service package
    • Uploading required documents to our site or app
    • Verification of documents by our experts and signing the necessary forms
    • Downloading the Certificate of Incorporation
    • Maintaining compliance through an annual package
    • Obtaining related business licenses
    • Consulting on MCA regulations
    • Assistance with opening a bank account
    • Establishing a bank account with premier Indian banks for your new business.

    Cost involved in Private Limited Company Registration

    The expenses for registering a Pvt Ltd Company can fluctuate based on factors like the company’s locale, the registration service’s offerings, and extra-legal or compliance mandates. Generally, the cost spans from several hundred to thousands of dollars, covering the registration process, government fees, and professional charges, along with services like digital signature certification or PAN card procurement. It’s crucial to evaluate various registration services to secure the best deal for your needs. While the initial cost may seem steep, the advantages of Pvt Ltd registration—like liability limitation, funding ease, and enhanced credibility—are significant for your business’s sustained growth.

    Benefits of Company Registration in India

    • Legal Entity: Registration grants your business its own legal identity, safeguarding the owners’ personal assets from company liabilities.
    • Funding Access: Registered entities can readily obtain funds from banks, investors, and financial institutions.
    • Brand Recognition: A registered company can establish a distinct brand, attracting customers and fostering trust.
    • Limited Liability: Company owners are only liable up to their invested capital.
    • Tax Advantages: The Indian government offers tax benefits and incentives to registered companies, reducing operational costs.
    • Perpetual Existence: A registered company endures even with changes in ownership or shareholders.
    • Business Opportunities: Registration opens doors to contracts, partnerships, and collaborations.
    • Credibility and Trust: Registration enhances your business’s credibility and trust among stakeholders.
    • Intellectual Property Protection: Safeguard patents, trademarks, and copyrights, securing a market edge.
    • Regulatory Compliance: Registered companies must adhere to laws and regulations, ensuring ethical practices and transparency.

    GST registration is a straightforward online process, allowing you to file from home with updates provided as needed.

    Things to keep in mind while registering a Private Limited Company

    When setting up a Private Limited Company, it’s crucial to consider several factors:

    • Name Selection: Choose a distinctive name that doesn’t clash with existing entities and follows the registrar’s guidelines.
    • Minimum Requirements: You need at least two directors and shareholders, who can be the same individuals.
    • Registered Office: The company must have an official address in its country of incorporation.
    • Constitutional Documents: Submit the Memorandum and Articles of Association, detailing the company’s purpose and governance.
    • Share Capital: Define a minimum authorized share capital and shareholding structure.
    • Company Secretary: Appoint a secretary to manage statutory records.
    • Compliance: Post-registration, adhere to regulatory requirements, file annual returns, and conduct general meetings.
    • Taxes: Be aware of tax obligations and ensure proper tax registration.
    • Legal and Regulatory Awareness: Stay informed about industry-specific laws and regulations.
    • Professional Advice: Seek expert advice to navigate legal and regulatory processes.

    Choosing a business structure while applying for company registration in India

    Choosing a business structure in India involves:

    • Understanding Business Structures: Familiarize yourself with various forms like Sole Proprietorship, LLP, Partnership, Private Limited, and Public Limited Companies.
    • Business Goals and Needs: Reflect on your business’s long-term objectives, desired control level, liability, and the number of stakeholders.
    • Professional Consultation: Obtain guidance from legal or financial advisors on implications and compliance for each structure.
    • Regulatory Requirements: Investigate the specific registration and compliance needs for each structure.
    • Cost and Administration: Consider the financial and administrative demands of maintaining the chosen structure.
    • Tax Implications: Evaluate the tax benefits and responsibilities associated with each business framework.

    Compliances to be followed by the Pvt. Ltd. Company

    For a private limited company, compliance is a multifaceted obligation encompassing various legal and regulatory domains. After careful consideration of these aspects, you’ll be well-equipped to choose the most suitable business structure for your company’s registration in India. Consulting with a company registration service or legal advisor is recommended to fully grasp all legal and regulatory prerequisites before initiating the registration process.

    Statutory Compliances

    A private limited company in India must fulfill all statutory compliance demands as outlined in the Companies Act, 2013, and adhere to rules set forth by the Ministry of Corporate Affairs (MCA).

    Taxation Compliances

    The company is obligated to meet all tax-related duties, including the filing of income tax returns, tax payments, and compliance with Goods and Services Tax (GST) regulations.

    Annual Compliances

    The company is required to hold its Annual General Meeting (AGM), compile and file annual financial statements, and maintain other statutory records as mandated by law.

    Regulatory Compliances

    The company must comply with guidelines and rules from regulatory bodies such as the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI), and the Registrar of Companies (ROC).

    Employment and Labour Law Compliances

    The company must observe relevant employment and labour laws, which cover areas like minimum wages, provident fund, employee insurance, and other labour welfare provisions.

    Intellectual Property Compliances

    The company must respect all laws and regulations concerning intellectual property rights, including trademarks, copyrights, and patents.

    Environmental and Health Safety Compliances

    The company must comply with environmental regulations and maintain a safe and healthy workplace for its employees.

    Data Protection and Privacy Compliances

    The company must adhere to data protection and privacy laws, safeguarding customer and employee information.

    Corporate Governance Compliances

    The company must follow good corporate governance principles as per the guidelines from the Securities and Exchange Board of India and other regulatory authorities.

    Other Industry-Specific Compliances

    The company must also comply with any laws, regulations, and standards that are specific to the industry in which it operates.

    Why Corporate Raasta Consulting

    Corporate Raasta Consulting offers end-to-end solutions for private limited company registration and compliance management. Our team of experts provides timely and efficient services to ensure that your company remains compliant with all legal and regulatory requirements.

    Frequently Asked Questions

    • A Private Limited Company is a company that is privately held for small businesses, where the liability of the members is limited to the shares they hold. It is a separate legal entity and requires a minimum of two directors and two shareholders.

    • Some benefits of registering a Private Limited Company include limited liability protection for the shareholders, separate legal entity status, ability to raise capital from investors, and more.

    • The process of registering a Private Limited Company involves obtaining Director Identification Number (DIN) and Digital Signature Certificates (DSC), drafting and filing the Memorandum of Association (MOA) and Articles of Association (AOA), and obtaining a Certificate of Incorporation from the Registrar of Companies (ROC).

    • The time taken to register a Private Limited Company depends on various factors, such as the availability of all required documents, approval from authorities, and more. It can take anywhere from 10 to 20 days or more.

    • A Private Limited Company must comply with various regulations, such as filing annual returns with the Ministry of Corporate Affairs (MCA), conducting annual general meetings (AGMs), filing income tax returns, payment of income tax and other taxes, and maintaining books of accounts and getting them audited.

    • Yes, the company must file income tax returns, pay taxes due, and comply with Goods and Services Tax (GST) regulations.

    • The company is required to hold an Annual General Meeting (AGM), file annual financial statements, and maintain statutory records as per legal requirements.

    • The company must follow laws related to minimum wages, provident fund, employee insurance, and other labor welfare measures.

    • The company must ensure it respects intellectual property laws, including those related to trademarks, copyrights, and patents.

    • The company should adhere to the principles of corporate governance as per SEBI guidelines and ensure transparency and ethical business practices.