Benefits of Pvt Ltd Company Registration

• Registering a company yields a multitude of advantages that significantly bolster your business prospects. This process elevates your business's credibility, instilling a sense of trust among consumers, thereby potentially augmenting customer patronage. The online avenue for company registration introduces a host of benefits that catalyze your business growth and ultimate triumph.

• Company registration acts as an impervious shield against personal liabilities and other potential losses.

• Registration lends an air of professionalism to your business, fostering consumer trust and consequently expanding your customer base.

• The act of registration provides a solid foundation for substantial growth and expansion endeavors.

• The structure of a registered company facilitates increased capital contribution from diverse sources.

• Through registration, your company's assets are fortified against potential risks and liabilities, preserving the financial integrity of your business.

• Incorporating these advantages, Legalitis serves as your dedicated partner, adeptly guiding you through the intricacies of company registration.

How to Register a Company?

• Initiating the company registration process in India has evolved into an exceptionally user-friendly and accessible endeavor. At Legalitis, we are committed to providing a streamlined and hassle-free experience, whether you intend to register a private limited company or any other business entity. Our approach revolves around simplifying the process, ensuring a seamless journey for our clients.

Steps For Company Registration Process in India

• Step 1: Gathering Initial Documents

  Commence by assembling the essential documents required for the incorporation process. Ensure that these documents are meticulously reviewed and verified for accuracy and completeness.

• Step 2: DSC and Name Approval

  Progress towards obtaining a Digital Signature Certificate (DSC) and initiating the process of securing approval for your chosen company name from the Ministry of Corporate Affairs (MCA). This is a pivotal phase that sets the foundation for your company's legal identity.

• Step 3: Collecting Additional Documents

  Proceed to collect the supplementary set of documents necessary for the incorporation procedure. These documents, just like the initial set, should undergo thorough verification to ensure their validity and correctness.

• Step 4: Drafting MOA and AOA

  Engage in the formulation of the Memorandum of Association (MOA) and the Articles of Association (AOA). These documents serve as the guiding principles for your company's operations and internal structure.

• Step 5: Final Form Upload

  Conclude the process by uploading the completed set of documents and forms, marking the final phase of your company's incorporation journey. This stage encapsulates the culmination of your efforts, paving the way for your business to legally come into existence.

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Characteristics of Private Limited Company

• Members

  In accordance with the relevant legal provisions, a private limited company must have a minimum of two members, and its shareholder count cannot exceed 200 individuals.

• Number of directors

  As stipulated by the Act, a private limited company is mandated to have a minimum of two directors, with the upper cap set at 15 directors.

• Limited liability

  The structure of a private limited company inherently confers limited liability upon its members or shareholders. This means that in the event of company losses, the personal assets of shareholders remain safeguarded. They bear responsibility only up to the extent of their subscribed shares or the predetermined guaranteed amount.

• Perpetual succession

  Perpetual succession ensures that a private limited company continues to exist legally, regardless of factors such as insolvency, bankruptcy, or the death of any of its members. The company's existence is perpetual.

• Authorized and paid-up share capital

  The doctrine of perpetual succession ensures the uninterrupted legal existence of a private limited company. External factors like insolvency, bankruptcy, or the demise of any member do not impede the company's continuous existence.

• Name

  The name of a private limited company necessitates the inclusion of 'private limited' at its conclusion. For instance, if the company name is "ABC," it should be officially represented as "ABC Pvt. Ltd" in official correspondence and registration forms.

• Prospectus

  Unlike public companies, private limited companies are prohibited from issuing a prospectus. This restriction arises from their inability to solicit the public for share subscriptions.

• Index of members

  The obligation to maintain an index of members is not imposed upon private limited companies under the Act. Conversely, public companies are obligated to maintain such an index as per regulatory requirements.

Checklist for Private Limited Company Registration in India

• ATo ensure seamless Private Limited Company Registration in accordance with the Companies Act, 2013, the following checklist of requirements must be adhered to:dia.

• Two Directors:

  A private limited company mandates the presence of a minimum of two directors, with an upper limit of fifteen directors. Among these directors, at least one must be a resident of India.

• Unique Name

  The chosen name for your private limited company must be distinctive and unique. The proposed name should not match any existing company names or registered trademarks within India.

• Minimum Capital Contribution:

  There is no stipulated minimum capital requirement for a private limited company. However, the company should possess an authorized capital of at least ₹1 lakh.

• Registered Office:

  The registered office location of the private limited company need not be a commercial establishment. Even a rented residential address is permissible. It's essential to obtain a No Objection Certificate (NOC) from the landlord of the chosen premises to use it as the registered office.

Types of Private Limited Company

• Company Limited by Shares

  At Legalitis, our commitment lies in providing you with a comprehensive understanding of the legal nuances surrounding companies limited by shares. By partnering with us, you can navigate this framework with precision, securing your business operations while safeguarding your shareholders' interests.

• Company Limited by Guarantee

  At Legalitis, we are dedicated to providing you with a comprehensive grasp of the intricacies surrounding companies limited by guarantee. Through our partnership, you can confidently traverse this legal landscape, effectively managing your business affairs while upholding the financial safeguards of your members.

  Legalitis recognizes the significance of these intricacies and ensures that your understanding of a Company Limited by Guarantee remains comprehensive. By partnering with us, you can confidently navigate this distinct legal structure, safeguarding your members' interests and ensuring seamless operations within the bounds of these regulations.

• Unlimited Companies

  At Legalitis, we recognize the distinctive nature of unlimited companies and are dedicated to ensuring your comprehensive understanding of their operational dynamics. Through our partnership, you can navigate the nuances of unlimited companies with confidence, upholding the principles of liability while safeguarding the interests of all stakeholders involved.

  Despite not providing the traditional limited liability protection to shareholders, it's important to note that an unlimited company retains its status as a distinct legal entity. This recognition as a separate legal entity ensures that the members of an unlimited company cannot be individually pursued through legal action..

Why Is It Important to Choose the Right Business Structure?

• Choosing the right business structure is crucial for several reasons:

• Legal Compliance: Distinct business structures entail diverse legal requirements. Opting for the appropriate structure ensures adherence to pertinent laws, regulations, and taxation norms within India.

• Liability Protection: Selecting the right structure can serve as a protective shield for personal assets against business liabilities. For instance, the establishment of a limited liability partnership or a private limited company extends limited liability protection to proprietors, effectively safeguarding personal assets from potential business debts.

• Tax Implications: Each business structure carries its own set of tax implications. Making a judicious choice with regard to structure can aid in minimizing tax obligations, leveraging available tax benefits and incentives, and ultimately optimizing profitability.

• Funding Opportunities: The chosen business structure can significantly influence the ease of capital acquisition. For instance, a private limited company possesses the capacity to issue shares, rendering it more appealing to investors and lenders, thereby enhancing funding prospects.

• Operational Flexibility: Diverse structures offer varying degrees of operational flexibility. The apt selection empowers business proprietors to define roles, responsibilities, and decision-making protocols in alignment with their specific requirements.

• Long-Term Goals: The elected business structure should harmonize with your enduring objectives. It should facilitate organic growth, expansion endeavors, and future exit strategies, including possibilities like mergers, acquisitions, or public listing.

Name and Capital of the Company

• Legalitis recognizes the multifaceted aspects of these decisions and endeavors to provide you with comprehensive insights. Our partnership empowers you to navigate the intricate journey of naming your company and defining its financial foundation with confidence and precision. Choosing a company name is an artful process that intertwines creativity with practical considerations such as industry relevance, target audience resonance, and personal inclinations. The capital outlay for a company exhibits a dynamic nature, subject to substantial fluctuations contingent upon the resources and investments requisite for commencing and sustaining the business endeavor.

Private Limited Company Registration Compliances

• After the successful completion of the company registration process in India, it becomes imperative to diligently observe an array of compliance regulations. This ensures the prevention of potential fines and legal ramifications. Noteworthy post-registration requirements encompass:

• Auditor Appointment:

  Within 30 days of company incorporation, it is mandatory for every Indian company to appoint a practicing, certified, and registered Chartered Accountant (CA) as an auditor.

• Director DIN KYC:

  Annually, individuals holding a Director Identification Number (DIN) are required to undergo a DIN KYC process. The DIN can be obtained during the company incorporation. This process verifies the accuracy of the phone number and email address on record with the Ministry of Corporate Affairs (MCA).

• Commencement of Business:

  Shareholders of the company are obligated to deposit the subscription amount specified in the Memorandum of Association (MOA) within 180 days of incorporation. The company must also establish a bank current account. For instance, a company with a paid-up capital of ₹1 lakh needs to deposit ₹1 lakh into its bank account. A copy of the bank statement should also be filed with the MCA to receive a business incorporation certificate.

• MCA Annual Filings:

  Every financial year, the MCA necessitates the submission of financial statements from each registered company in India. Companies that incorporate between January and March can opt to include the initial MCA annual return in the annual filing for the subsequent fiscal year. The MCA annual return consists of Forms MGT-7 and AOC-4, both of which require digital signatures from directors and a qualified professional.

• Income Tax Filing:

  Businesses are obligated to file an income tax return using Form ITR-6 for each financial year. This filing should be completed irrespective of the date of incorporation. The income tax return must be digitally signed using the director's digital signature.

Requirements to Register a Company

• Before registering company in india, it must meet a specific set of conditions. The following are such conditions:

• 1. Directors and Members

  Indeed, in accordance with the Companies Act of 2013, a legal Private Limited Company Registration in India mandates the presence of a minimum of two directors and a maximum of 200 members. These directors should adhere to the following stipulations:

• Each director of the company should possess a unique Director Identification Number (DIN) issued by the Ministry of Corporate Affairs (MCA).

• Among the directors, it's a mandatory requirement that at least one director must be an Indian resident. This implies that the director should have spent a minimum of 182 days in India during the previous calendar year.

• By adhering to these conditions, you're not only complying with the legal framework but also facilitating effective governance and regulatory compliance within your private limited company. Legalitis is dedicated to supporting you in navigating these requirements, ensuring that your company registration and operations are aligned with regulatory standards.

• 2. The Business's Name

  When selecting a name for a private limited company, there are two factors must be into consideration:

• Each director must have a unique Director Identification Number (DIN) issued by the MCA.

• At least one director must be an Indian resident, which means they should have spent a minimum of 182 days in India during the previous calendar year.

• 3.Address of the registered office

  After successfully registering the company, providing the permanent address of the business's registered office to the company registrar is essential. The registered office is the primary location where the company conducts its business activities and maintains all relevant documentation.

• 4. Getting Additional Documents

  To ensure the authenticity of electronically submitted documents, businesses are required to obtain a Digital Signature Certificate (DSC). Additionally, the company may require credentials from professionals such as company secretaries, chartered accountants, and cost accountants who are engaged for various operational and compliance tasks.

Comparative List of Different Types of Business Structures in India

Documents Required for Online Company Registration

• The MCA requires proper identity and address proof for private limited company registration in India. The following documents are the requirements for registering a company in India:

• Identity and Address Proof

• Scanned copy of PAN card or passport (foreign nationals & NRIs)

• Scanned copy of voter ID/passport/driving license

• Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill

• Scanned passport-sized photograph specimen signature (blank document with signature [directors only)

• Registered Office Proof

• Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill

• Scanned copy of notarised rental agreement in English

• Scanned copy of no-objection certificate from the property owner

• Scanned copy of sale deed/property deed in English (in case of owned property)

Note: Your registered office need not be a commercial space; it can be your residence too.