Wednesday, 22 July 2020

Private Limited Company

Private Limited Company
Private Limited Company is the most popular corporate entity that is registered extensively in India. It is governed by the MCA (Ministry of Corporate Affairs) and regulated by the Companies Act, 2013 and the Companies Incorporation Rules, 2014.

We can help you with company registration across India at a very competitive price. The advantages of registering a private limited company are enlisted to the right.

Easy Transferability
As the ownership of a company is represented by shares, the ownership of a company can be transferred to any other legal entity or person in India or abroad easily - in part or whole. The directors can also be replaced to ensure business continuity.

Limited Liability
A private limited company provides limited liability protection to its shareholders. In case of any unforeseen liabilities, it would be limited to the company and not impact the shareholders.

A company can raise equity capital from persons or entities interested in becoming a shareholder. Entrepreneurs can raise money from angel investors, venture capital firms, private equity firms and hedge funds.

Separate Legal Entity
A private limited company is recognised as a separate entity legally with perpetual existence. It can have a PAN number, bank accounts, licenses, approvals, contracts, assets and liabilities in its unique name.

Steps to register
We can incorporate a company in less than ten days, subject to government processing times and availability of all documents.

The process for company registration begins with obtaining digital signatures. Your engagement manager will submit the application and generate a link to complete video eKYC verification. The applicant would have to take a short video and verify OTP to authenticate the application.

Next, the name approval form is submitted. The Government typically provides name approval within 48 hours. Then, legal documents are prepared which need to be signed by the directors and shareholders.

Once the documents are verified, your engagement manager will apply for incorporation with the MCA on the same day. Incorporation approval in about 48 - 72 hours of business days.

Documents required
Documents are of utmost importance in the process.In addition to the identity proof, the directors must submit residence proof that is less than three months old.

Companies registered in India must mandatorily maintain a registered office. In case of leased property, the copy of lease deed for the registered office premises along with a NOC from the landlord and EB bill/property tax receipt/water bill copy of the registered office property. In case of property owned by self, copy of the sale deed along with the EB bill/property tax receipt/water bill is required.

In case one of the shareholders or subscribers to the MOA and AOA is a corporate entity (Company, LLP, etc.,) then the certificate of incorporation must be attached along with the resolution passed by the entity to subscribe to the shares of the company under incorporation.

Document submission
Identify the 2 directors and submit their documents as given to the below.

Identity Proof- PAN (Indian Nationals ) or Passport (Foreign nationals)
Proof of Address- Passport / Drivers License / Election ID / Ration Card / Aadhar ID
Proof of residence- Bank Statement / Electricity Bill / Phone Bill
Name Approval
The proposed name is applied and obtained from the Ministry of Corporate Affairs. Upto 2 names can be provided. In case of rejection of both names, an opportunity is provided for re-submission of the form with 2 more names.

Digital Signature
Digital signatures must be obtained for the proposed directors of the company. Digital signature is required for signing of the incorporation application. However, digital signature is not required for obtaining the name approval.

SPICe+ form application
On obtaining the digital signature, the incorporation application can be submitted in the SPICe form with the MCA. There is no requirement for obtaining the RUN name approval for submission of SPICe Form.

Company Incorporation
Company is incorporated along with the incorporation certificate, PAN and TAN within 2-3 business days.

Company current account
We have exclusive relationships with top Banks in India wherein we will open a zero-balance current account digitally through our platform. Based on your choice of Bank, we can forward the request digitally to the Bank for opening the company’s current account from the comfort of your home in any city or town in India.

Register your company this month and get a free payment gateway.
Company Compliance
All companies registered in India are required to maintain compliance under various regulations. Failure to maintain compliance can lead to penalty or disqualification of the directors.

We can help you with accounting and maintaining of statutory compliances for the company at a very affordable price point.

Some of the important compliances for companies registered in India are given to the right. Please note that additional forms will also be applicable as per government notification.

Other than these mandatory compliances, there are others that need to be done depending on the company’s timeline. We also assists in increasing authorised capital, changing registered office, change in directors and others.

Statutory Auditor appointment
30 days of Incorporation
The board of directors must appoint a practising Chartered Accountant within 30 days of incorporation.

Commencement of Business (Know more)
180 days of Incorporation
The capital mentioned in the MOA [Memorandum of Association] must be deposited in a bank and commencement certificate must be obtained from MCA.

Income Tax Filing
30th September
Companies registered in India must file income tax return each year in Form ITR-6.

Annual Return
31st October
Companies registered in India must file MCA annual return each year in forms AOC-4 and MGT-7.

30th April
The DIN KYC procedure must be completed each year for the directors of the company.


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