India is one of the fastest-growing countries, having a far-reaching impact on global trade and commerce. The level of competition prevailing in the Indian market is extravagant with the launching of new start-ups almost every day. Therefore, having a thorough understanding of the various business structures is essential to select the correct form of business and survive the race. Before anything else, you must know how to register a Company to comply with the statutory obligations related to the business, if you are a newbie entrepreneur planning to start a Private Limited Company.
Private Limited Company-What is it?
A company held by private individuals for small businesses is known as a Private Limited Company. This type of business is the best choice for the novice business person as the liability is limited to the extent of their shares, and one need not sell their assets to clear debts. Also, you can start your privately owned business with at least two members. Since a private limited company has an identity distinct from its shareholders, the stakeholders are safe from all legal entanglements. However, as you start your own privately held company, prioritise completing your Private Limited Company registration to avoid legal complexities. Following are the factors determining a smooth registration process:
- Directors: A private limited company must have at least two and a maximum of fifteen Directors.
- Members: When it comes to shareholders, a privately held company requires a minimum of two and a maximum of two hundred members.
- Capital Investment: As per the statutory mandate, a private limited company must have an authorised capital amounting to Rupees One Lakh.
- Name: Before seeking registration for a privately owned company, it is vital to check out whether or not the name of the Company resembles any other. If so, you must take immediate action to change the name and have a unique one or else your registration process might come to a halt in between.
- Registered Office: The Company must have a registered address to start operating its business.
Process of Registration
Wondering how to register a Company online? Follow the step-by-step guidelines as provided:
- Apply to the Ministry of Corporate Affairs portal and gather a Digital Signature Certificate (DSC).
- Fill up the SPICe+ form and apply for the Director Identification Certificate (DIN).
- Give a unique name to your company that does not match others while filling up the SPICe+ form and then submit it to the MCA portal.
- Wait as you submit all the required documents. Once the verification process is complete, the registration authority will provide you with the Certificate of Incorporation together with the PAN and TAN of the Company.
Frequently Asked Question
Q. What is the least number of members I require to start my private company?
To start your own Private Limited Company, you will need at least two shareholders and two directors.
Q. Who issues the registration certificate?
The Registrar of Companies (ROC) issues the Incorporation Certificate of your Company.
Q. Can I have the registered office of my company at my own house?
Yes, you can have the company registered at your address.
As a newbie entrepreneur, the Private Limited Company registration procedure may seem difficult for you but worry not! Contact the top company registration lawyers who will make the daunting task easy for you.
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