About Private Limited Company
Registration of private limited company is common in India. Every time when we start a business, we think about the company registration in Gurgaon. Company formation in gurgaon is an easy process, and it takes 7-10 days, provided all information and documents are complete. To register a private limited company, the minimum requirements are:
- Registered Office: Registered office of the company should be in India. You can call it, where all the notices and information from the government authorities are communicated.
- Minimum Directors: There should be at least 2 directors and 1 should be an Indian national and resident of India.
- Minimum Shareholders: 2 Shareholders are required. Directors can be a shareholder of the company.
A Private Limited company is a company held by founders privately in which no public money is allowed to invest in. A private limited company is a separate legal entity and its rights, obligations, assets and liabilities are separate from its members/shareholders. In India, Startups prefer to incorporate private limited companies because it is easy for them to receive money in the company and issue equity shares, preference shares and non-convertible debentures. Investor including Angel Investors and Venture Capitalists also prefer to invest in private limited companies. Hence incorporation of private limited companies for businesses like Startups becomes a necessity.
Benefits of Private Limited Company
These are a few illustrative lists of benefits. We have covered some of the key benefits for you:
- Separate legal identity: The liability of shareholders is limited and it is separate from the company, because the company has its own separate legal identity.
- Perpetual succession: The company has perpetual succession means that the death of any shareholder or director does not affect the existence of the company.
- Easy to invest in Startups: The startup can easily raise funds from investors in the private limited company. Even investors prefer to invest in a private limited company over LLP registration in gurgaon and One person company.
- Loan from Banks: Company has its separate legal identity so it can raise funds from the banks and NBFC in its own name.
- Tax efficiency: The income tax rates are 15%/22%/25% for the private limited company as compared to LLP registration in gurgaon and Partnership firms where the income tax rate is 30%.
- Flexible management structure: In a private limited company it is easy to appoint and resign a director/Management personnel from the company.
- Easy to get government tenders: Government tender’s primary requirement is that the applicant should be a private limited company. Mainly all tenders are allotted to private limited companies and registered LLP and Partnership firms are ignored in some tenders.
- Image and Branding: The name of the company is in itself a brand, however, you can give a brand name to your company which may be different from the name of the company.
Process of Private Limited company Registration
Below are the explanations for the above-mentioned process diagram:
Step-1: Name application is made with the registrar of company, where the application form for approval of the name is filed.
Step-2: After the approval of the name, digital signatures are applied for the subscriber of memorandum and articles. These digital signatures are used to sign incorporation forms.
Step-3: Under this step, all documents relating to incorporation are drafted and prepared.
Step-4: When all documents are ready, it should be filed with applicable forms as mentioned earlier.
Step-5: The registrar of company after reviewing the application, approves the application and issues the registration certificate.
Forms to be filed for Registration of Private Limited Company:
- Spice+ (Form-INC32): Simplified Proforma for Incorporating Company Electronically Plus is a web-based form, filed for registration of company
- MOA (Form-INC 33): Memorandum of association represents the charter of the company. It is a legal document, which is filed with the incorporation documents for company registration in Gurgaon. It also contains the subscribers and share capital details.
- AOA (Form No 34): It is referred to as Article of Association. It defines the rules and regulations of the company under which a company, directors, and shareholders must perform.
- Agile Pro (Form INC-35): This form is filed for an application for
- Goods and Service tax Identification number,
- employee state insurance corporation registration,
- employees provident fund organization registration,
- Profession tax registration,
- Opening of Bank account and Shops and Establishment Registration
- Form – INC-9: Declaration by Subscribers and first directors are filed using this form.
Checklist of documents for Registration of Private Limited Company
- Name of the company (subject to approval)
- Nature of Business of the company
- Objective of the company
- Proof of Registered Address:
- Copy of latest Utility Bill (Should not be more than 2 months)
- NOC from the property owner
- Notarized Rent Agreement (if office is rented)
- Copy of sale deed ( in case property is owned)
- Shareholders/ Promoters Details
- Name of Shareholders
- Number of shares subscribed
- Face Value per share
- Details of proposed director
- DIN of the director (if already allotted)
- Fathers Name
- Phone No and Email address
- Copy of Aadhar and PAN card
- Date of Birth
- Place of Birth
- Period of stay of director at present address
- Bank Statement (Three months)
- Proof of Permanent Address
- Proof of Current Address
Documents you get after incorporation
- DIN for 2 Directors
- Digital Signature for 2 subscribers
- Incorporation certificate
- Share certificates
- Provident fund and ESI registration certificates
- PAN card of company
- TAN number of company
- Document support for opening Bank account
You can contact us at email@example.com, if you are looking for a CA in Gurgaon, for company registration and formation in gurgaon. Our team of experts will assist you in company incorporation and you will get satisfactory services from our professional experts.