Private Limited Company
Private Limited Company Registration in just 7 Days
Benefits – Why one should go for Private Limited Company Registration in India?
Starting a private limited company offers many advantages. Some of them are as follows:
- Registering your business as a private limited company enhances your business’s credibility.
- shields owners from personal liability.
- safeguards against various risks and losses
- Ease in obtaining bank credits
- provides limited liability to safeguard your company’s assets
- attracts a larger customer base
- simplifies the process of securing bank credits
- facilitates access to increased funds
thereby boosting your potential for significant growth and expansion.
Now, let’s discuss some of the benefits in detail;
- Limited Liability
Members of a private limited company have limited liability, meaning their responsibility is confined to their respective shares in the company. This limited liability arises because a private limited company is considered a distinct legal entity separate from its members.
- Separate Legal Entity
A private limited company is recognized as a distinct legal entity with the capacity to initiate legal action or be subject to legal action. It functions as an artificial entity capable of acquiring property in its own name..
- Credit Availability
A private limited company can raise funds through the issuance of debentures as well as by attracting investment from its shareholders. Registered as a corporate entity, a private limited company tends to attract interest from angel investors and venture capitalists, which can significantly contribute to its expansion and provide additional funding for business growth.
- Perform Internationally
Private limited companies facilitate Foreign Direct Investment (FDI) without the need for extensive licensing and approval processes typically required by other types of firms seeking foreign investments.
- Perpetual Existence
Private limited companies facilitate Foreign Direct Investment (FDI) without the need for extensive licensing and approval processes typically required by other types of firms seeking foreign investments.
- Enhanced Value In Market
A registered private limited company is inherently more reliable and reputable compared to unregistered entities. Information about the registration status of a private limited company can be readily accessed on the Ministry of Corporate Affairs website. This official recognition instills trust among vendors, suppliers, and investors, making them prefer such companies over other business structures. Consequently, this boosts the company’s brand value not only among customers but also among potential investors and suppliers.
- Ease In Transfer Of Ownership
Transferring equity to new members and issuing fresh shares in a private company is a relatively straightforward process.
What are the basic requirements of Private Limited Company Registration in India?
There are several prerequisites to consider before commencing the establishment of a Private Limited Company in India;
- The Private Limited Company is required to have a distinctive name that does not overlap with any other registered company or trademark.
- A minimum of two directors is a mandatory requirement for a private limited company..
- Additionally, it is crucial to bear in mind that a private limited company must have a minimum of two shareholders.
- Every director and member of a private limited company must possess a digital signature certificate, which is essential for the registration of the company.
- There is no mandatory minimum capital requirement for initiating a private limited company in many jurisdictions, including India.
- The online company registration process is relatively straightforward. It is essential to ensure that you have a unique name for your company, as this will expedite the registration process.
- It’s imperative to steer clear of any offensive or inappropriate names when registering a private limited company..
How we can help you with Private Limited Company Registration?
Business Entities Comparison Guide
Proprietorship
- A maximum of 1 member is needed;
- The entity is not considered as a separate legal entity;
- The liability of members is unlimited;
- The Registration of entity is not compulsory;
- The transferability option is only as an individual;
- The profit and losses of the business should be reported in the personal income tax return of the sole proprietor. The business itself is not taxed.
- The Income Tax Return is filed with the Registrar of Companies.
Partnership Firm
- A minimum of 2 and maximum of 20 members are needed;
- The entity is not considered as a separate legal entity;
- The liability of members is unlimited;
- The Registration of entity is optional. The entity can be registered under the Partnership Act, 1932
- The transferability option is available only up to 30% of the Company profit only.
- The Partnership Firm is liable to pay income tax at the rate of 30% of Company profit.
- The Income Tax Return is filed with the Registrar of Companies.
LLP
- A minimum of 2 members are needed. There is no limit on the maximum number of members;
- The entity is considered as a separate legal entity;
- The liability of members is limited;
- The Registration of entity is done under MCA;
- The transferability option of LLP is 30% of Profit Plus CESS and Surcharges applicable;
- The LLP is liable to pay income tax at the rate of 30% of Profit Plus CESS and Surcharges applicable;
- The Income Tax Return is filed with the Registrar of Companies.
Private Company
- A minimum of 2 and maximum of 200 members are needed;
- The entity is considered as a separate legal entity;
- The liability of members is limited to the extent of share capital;
- The Registration of entity is done under MCA.
- The transferability option of Private Company LLP is 30% of Profit Plus CESS and Surcharges applicable;
- A Private Company is liable to pay income tax at the rate of 30% of Profit Plus CESS and Surcharges applicable.
- The Income Tax Return is filed with the Registrar of Companies.
OPC
- Only 1 member is needed;
- The entity is considered as a separate legal entity;
- The liability of members is limited to the extent of share capital;
- The Registration of entity is under MCA and Companies Act, 2013;
- The transfer of OPC is allowed to only one person;
- An OPC is liable to pay income tax at the rate of 30% of Profit Plus CESS and Surcharges applicable.
- The Income Tax Return is filed with the Registrar of Companies.
How E-Taxwala Helps in Private Limited Company Registration?
With E-Taxwala, you can establish your private limited company seamlessly. You can register your Private Limited Company in just 4 simple steps:
Step 1: Purchase the Plan
Purchase our Private Limited Company (PLC) Registration plan. You can even chat with our experts by entering your email, phone number and request a callback. Our experts will contact you and clear all your queries.
Step 2: Upload the Documents on our Website
Upload the below-mentioned documents on our website to incorporate your company:
- Passport size photos of directors
- Address proof of directors
- Photo ID proof of directors
- Specimen signature
- Self-declaration about your directorship in other companies
- Rent agreement of your registered office
- No objection certificate from the owner of the property of the property
- Aadhaar card
- PAN card
The company registration from E-Taxwala is completely online and thus, you can save time and money as you need not have to visit our office.
Step 3: Document Verification by our Experts and Signature of Documents
Our experts will verify the documents uploaded by you. You will need to attest your signature on the documents.
Step 4: Our Experts will File Forms on the MCA portal to Incorporation your Company
Our experts will file the below forms on behalf of you on the MCA portal –
- Digital Signature Certificate (For 2 proposed directors) Application
- Company Name Reservation
- Filing of e-forms with ROC
Once the company forms are submitted on the MCA portal, they undergo verification by the Registrar of Companies (ROC) and relevant government departments. This verification process typically takes approximately 10 days, although the duration may vary depending on departmental approval and feedback from the respective government entities.
Our experts will diligently liaise with the relevant authorities until you obtain the Incorporation Certificate. Once the verification process concludes, you can expect to receive the Incorporation Certificate, as well as the PAN and TAN, within approximately 10 days.
