Private Limited Company Registration | Process | Documents Required

What is Private Limited Company

A Private Limited Company Registration is a privately maintained small business existence, which is one of the highly recommended means to start a business in India. The Companies Act 2013 governs Pvt. Ltd. company registration in India. While, minimum of 2 shareholders are required to start a private company, the higher limit of members is 200 as per the Companies Act, 2013. If a private limited company faces financial risk, its shareholders are not subject to sell their personal assets, i.e. they ought to have limited liability.

For online company registration, there must be a least of 2 directors while a maximum of 15 directors can be appointed in a company. The proposed director must have attained the age of 18 years. A foreign national can also become a director of a private limited company in India. There is no minimum paid-up capital required for a Pvt. Ltd. company registration. Every private limited company must use “Pvt.Ltd.” after their name.

A private limited company has never-ending existence, Pvt. limited company holds on existing even in the case of death or bankruptcy of its Members. A private limited company does not have any relationship with the public; they aren’t permitted to ask for any collateral from the public or public sectors. In a private limited company, people are not entitled to transfer shares, which protects takeovers of private limited companies from big enterprises.

Benefits of Private Limited Company Registration

EASE OF FORMATION: A Private Limited Company can be formed by two persons only, by complying with the prescribed formalities of the Companies Act. With Spice forms, this is the fastest way to register a company
SEPARATE LEGAL ENTITY: The biggest advantage of a Private Limited Company is that its identity is distinct from that of its members. A company is a separate person having its own rights & Obligations.
PERPETUAL SUCCESSION: In case of the death of the owner or transfer of shares, your business won’t get affected and There will be no effect on the firm’s continuance.
LIMITED LIABILITY: The greatest benefit of a Private Limited Company is limited liability. If any liability arises then its member is not personally affected; members are only liable for unpaid shares held by them and not more than that. Stakeholders are not liable for corporate debts and liabilities
GREATER FLEXIBILITY: A Private Limited Company is required to perform lesser legal formalities as compared to a Public Limited Company. It enjoys special exemptions and privileges under the company law. Therefore, in a Private Limited Company, less compliance is required.
SECRECY: A Private Limited Company is not required to publish its accounts or file several documents. Therefore, it is in a better position than a public company to maintain business secrets.
INVESTMENT: Flexibility to raise investments or loans from NRIs and Foreigners. Easy to raise investments and corporate loans
TRANSPARENCY: Private Limited Company enjoys enhanced transparency thus able to win the trust of the general public.
MINIMUM COMPLIANCE: Private Limited Company Registration enjoys enhanced transparency thus able to win the trust of the general public.

FAQ- Frequently Asked Question

What are the rules for picking a name for a private limited company?

The registrar of companies (RoC) across India expects applicants to follow a few naming guidelines. Some of them are subjective, which means that approval can depend on the opinion of the officer handling your application. However, the more closely you follow the rules listed below, the better your chances of approval. First, however, do ensure that your name is available.

How much time is needed for setting up a private limited company in India?

If you have all the documents in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar.

Do I need to be physically present during this process?

No, new company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.

What documents are required to complete the process?

All directors must provide identity and address proof, as well as a copy of the PAN card (for Indian nationals) and passport (for foreign nationals). No-objection certificate must be submitted by the owner of the registered office premises.

Is it necessary to have a company’s books audited?

Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs of rupees and even lead to the blacklisting of directors.

What is the minimum capital needed to form a private limited company?

There is no minimum capital required for starting a private limited company.

Can the limited liability partnership (LLP) be converted to a private limited company?

No, one cannot convert an LLP into a private limited company as it is not an MCA. The LLP Act, 2008, and the Companies Act, 2013, both don’t have any provisions on the conversion of the LLP is a private limited company. However, if one wants to expand their business they can register a new private limited company with the same name. The LLP company needs to just issue a no-objection certificate.

Can one register a private limited company on their home address?

Yes, the company can be registered at the owner’s home address. A copy of the utility bill is required to be submitted.

Does one have to be present in person for the incorporation of a private limited company?

The entire procedure is done online and one does not have to be present at our office or any other place for the incorporation. A scanned copy of the documents has to be sent via mail. They get the company incorporation certificate from the MCA via courier at the business address.

Can NRIs/foreign nationals become directors in a private limited company?

Yes, an NRI or a foreign national can become a director of a private limited company. He or she must obtain a DIN from the Indian RoC. They can also hold a controlling stake in the company. As long as at least one director on the board of directors is an Indian resident.

For more information, or to get started, reach out to Chartered Accountants from CA in Delhi‘s homepage

Know more about Documents required for private limited company

Company Registration in Delhi

Private Limited Company Registration in Delhi

Company Registration in Delhi is a hassle-free process with us. Company Registration in Delhi can be done in 5-7 working days once all the required documents are received. A Private Limited Company requires a minimum of 2 directors and shareholders and a registered address proof of the office. Our team will guide you in detail about the process and keep you updated with the status and next steps during the entire process of Company Registration

Company Registration Fees in Delhi
Market Price	~~₹12,000~~
Our Price	₹9,999
You Save	₹2,001
Government Fee & Documentation Charges	Included
Duration	5-7 Working Days*
Inclusions	AOA, MOA, PAN, TAN, and COI
Additional Freebies	1. Commencement Certificate (First mandatory compliance) 2. Onboarding Kit

Company Registration in Delhi Details

Checklist for registering a Company in New Delhi

A minimum of two members
The minimum capital required to start the private limited is Rs. 100,000
DIN of two members.
DSC or Digital Signature for all director
Consent either from the subscriber or director
Address proof of the registered address
NOC which will be provided by the owner of the property or premises
A minimum of 1 Director must be a resident of India

Documents Required for Private Limited Company Registration in Delhi

Two colored photographs of all the members
PAN card of all the associates
Address proof of all the directors
If the premises is on rent or lease then the respective documents need to be provided
Signature on DSC form, Affidavit for the DIN, consent form, and subscriber sheet

Company Registration Process in Delhi

Documents Submission: As a primary step, our team will share a documents checklist with you. so as a next step, you share the required documents with our team. For any queries, our team will be happy to guide you.
Name Approval Process: As a next step, our team will request you to share 2 proposed names for preliminary research of name availability. Then, we will apply for the name which has a higher chance of approval from the Ministry of Corporate Affairs. This step takes approximately 1-2 business days.
Registering DSCs of the directors: As a next step, our team will register DSCs for the directors of the company. The need for DSC arises while signing the incorporation application.
SPIC e+ Form Application: Next, our team will prepare the documents in the format accepted by MCA and fill upload the same while filling out the SPIC e+ form.
Incorporation of Company: That’s all. The MCA review and approve the application in 2-3 working days. Post that, we will share the PAN, TAN, and Certificate of Incorporation of your company.

Compliances after company Registration in Delhi

Hold the first meeting of the company’s board of directors no later than 30 days after registration.
Appoint an initial auditor. Additionally, submit information about him to the MCA via Form 1 ADT.
Open a bank account within 60 days of registration.
Deposit capital in the bank as per the MCA form so that we can obtain a certificate of commencement
Issue shares within 60 days of company registration.
Hold regular board meetings and prepare, manage and save your meeting minutes.
The company needs to submit an MSME-1 form
Companies registered under ESI, PF, and GST must submit monthly or quarterly reports as required. In addition, companies that own TAN must deduct and store the required amount of TDS each month. Once every quarter.
Income Tax filing: The Companies have to file their income tax return each year in Form ITR 6.
Annual return: The Companies need to file the MCA annual return mandatorily each year in Form AOC 4 and MGT 7.
DIN KYC: Each year for the proposed directors of the Company.

FAQ – Frequently Asked Questions

What are the rules for picking a name for a private limited company?

How much time is taken to register a private limited company in India?

If you have all the documents in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar.

Do I need to be physically present during this process?

No, new company registration is a fully online process. As the entire process is digital, there is no requirement to be physically present at all. You would need to send us scanned copies of all the required documents & forms.

What documents are required to complete the process?

All directors must provide identity and address proof, as well as a copy of the PAN card (for Indian nationals) and passport (for foreign nationals). No objection certificate must be submitted by the owner of the registered office premises.

Does a private limited company have continuous existence?

Yes, so long as the annual compliances are met, the private limited company will continue to exist. If you do not comply with the requirements, it will go dormant, until it is struck off the register altogether.

Is it necessary to have a company’s books audited?

What are articles of association and memorandum of association?

These documents contain the rules, vision, and mission of your organization, and define them. Additionally, the exact business and the roles and responsibilities of shareholders and directors.

What is the minimum capital requirement to register a private limited company in Delhi?

There is no minimum capital required for starting a private limited company.

Can the limited liability partnership (LLP) be converted to a private limited company?

No, one cannot convert an LLP into a private limited company as it is not under MCA. The LLP Act, 2008, and the Companies Act, 2013, both don’t have any provisions on the conversion of the LLP is a private limited company. However, if one wants to expand their business they can register a new private limited company with the same name. The LLP company needs to just issue a no-objection certificate.

If there are no partners available, then can one register their family members in the company?

Yes, it is good to register a family member as a partner. At a later stage, one can change this or transfer shares of the directors.

Start Limited Liability Partnership

Overview To Start Limited Liability Partnership

Let me go for a company. Umm…. but it’s difficult to keep up with its compliance requirements, the cost is also high, and I don’t even need to give shares to anyone. Let me go for Start Limited Liability Company. Less compliance, less cost, liability.Oh no! I don’t want an unlimited liability. I should rather go and Start a Limited Liability Partnership because: –

Limited Liability Partnerships, LLP is a unique and new form of business that combines the advantages of both ‘Company’ and ‘Partnership’ in a single business entity.
LLP is a superior form to the partnership. The partnership is often discouraged to use because of its unlimited liability feature, i.e. your personal assets may also be held up in case all the dues are not cleared. Hence, it is very risky to use this form of business. So, to overcome this problem, a most important feature of limited liability of the company is added to the partnership, which results in a Limited Liability Partnership.
LLP is a separate entity, which can be formed in India by a minimum of two persons coming together with a motive of earning profit. Unlike a Private Limited Company, an LLP is easy to manage. It is subjected to minimal post-registration compliances.

If a startup is not keen on raising funds and wants less stress on the compliance filing part, then they can opt for an LLP type of partnership.

A Start Limited Liability Company in India has the following features:

The liability of Partners in LLP is limited to their capital contribution.	Less compliance is needed as compared to a Public Company.
Flexibility in business operation because partners can decide how they will individually contribute to the business operations.	Now, LLP can access foreign equity funds under the automatic route. No RBI approval is required.
No tax is levied on the distribution of profits amongst the partners.	No restrictions on a maximum number of partners.

Description to Start Limited Liability Partnership

LLP is a unique and new form of business that combines the advantages of both ‘Company’ and ‘Partnership’ in a single business entity. This business form was introduced in India in the Year 2008 with the approval of the Limited Liability Partnership Act, 2008.

LLP is a superior form to the partnership. The partnership is often discouraged to use because of its unlimited liability feature, i.e. your personal assets may also be held up in case all the dues are not cleared. Hence, it is very risky to use this form of business. So, to overcome this problem, a most important feature of limited liability of the company is added to the partnership, which results in a Limited Liability Partnership.

LLP is a separate entity, which can be formed in India by a minimum of two persons coming together with a motive of earning profit. Unlike a Private Limited Company, an LLP is easy to manage. It is subjected to minimal post-registration compliances.

Some of the demerits of an LLP are, one doesn’t have the option of generating equity in an LLP which decreases the chances of raising funds from the investors in case of a startup, as investors are mostly expected to take up some percentage of the profit shares from the company.

Although, if a startup is not keen on raising funds and wants less stress on the compliance filing part, then they can opt for an LLP type of partnership.

An LLP in India has the following features:

The liability of Partners in LLP is limited to their capital contribution.
Less compliance is needed as compared to a Public Company.
Flexibility in business operation because partners can decide how they will individually contribute to the business operations.
Now, LLP can access foreign equity funds under the automatic route. No RBI approval is required.
No tax is levied on the distribution of profits amongst the partners.
No restrictions on a maximum number of partners.

Why Start Limited Liability Partnership?

EASY TO FORM:

It is very easy to form LLP, as the process is very simple as compared to Companies and does not involve much formality. Compared to other forms of starting a business, LLP has been found as the easiest form of incorporating a company and requires fewer hassles.

BODY CORPORATE:

Just like a Company, LLP is also a body corporate, which means it has its own existence as compared to a partnership. LLP and its Partners are a distinct entity in the eyes of the law. An LLP is known by its own name and not by the name of its partners.

LIMITED LIABILITY:

An LLP exists as a separate legal entity from its partners. Liability for repayment of debts and lawsuits incurred by the LLP lies on it and not on Partners. Forming an LLP is a good way to protect your personal assets from your company’s liabilities.

EASY TRANSFERABLE OWNERSHIP:

It is easy to become a Partner or leave an LLP or otherwise, it is easier to transfer the ownership in accordance with the terms of the LLP Agreement. It is relatively easy to transfer the ownership of an LLP to another person as compared to other business forms.

NO AUDIT REQUIREMENT:

Under LLP, only in the case of business, where the annual turnover/contribution exceeds Rs 40 Lacs /Rs 25 Lacs are required to get their account audited annually by a chartered accountant. This provides great relief to small businessmen.

COMPLIANCE:

Compared to a Private Limited Company, A Limited Liability Partnership tends to have less compliance to follow.

CAPITAL REQUIREMENT:

There is no minimum capital required to form an LLP.

TAX ADVANTAGES:

There are some important advantages over the private limited company. For example, Dividend Distribution Tax and tax surcharge don’t apply. Loans to partners are also not taxable as income

GREATER FLEXIBILITY:

Limited liability partnerships offer partners flexibility in business ownership. Partners have the authority to decide how they will individually contribute to business operations.

Time Period :

For certificate of incorporation, if documents are complete, consider 14 working days, and for the entire process including Form 3 & 4, just 7 more days.

Moving Step By Step to Start Limited Liability Partnership

Apply DSC and DIN of directors
Apply Company Name
Submission of Forms
Tadaaa..!! Certification of Incorporation is ready..!
All done, Just Form 3 & 4 to be filed within 3 months

Greenwolf Advisors Pvt Ltd : Finance Services

Greenwolf Advisors Contact Details:

Address : 208, Pearls Business Park, Netaji Subhash Place, New Delhi 110034 || Contact :+91 9711430728 || Email : [email protected] || Website : www.greenwolfadvisors.com.

Our partners at Greenwolf Advisors genuinely understand your requirements and with their tremendous experience, help you in not only taking care of compliance but also acting as a CFO partner of your business to drive growth and maximize the efficiency of the company’s finances. Our experts will help you make insights-driven strategic decisions through our tailored solutions to your unique requirements

We understand that our growth lies in our clients’ growth and we whole heartedly focus on satisfaction and growth of our clients.
We are committed to provide you the highest quality service wherein our dedication and sincerity can be felt by you in our work. Our philosophy lies in going an ‘extra mile’ and provide you value addition that is more than a part of our duty.

We understand that each business is driven by different aspirations, which is why we customise our advice, ideas and support for every client. Every bit of stress and paperwork we can take off your hands means more time for you to spend on running and expanding your business.

Greenwolf Advisors offer a wide range of financial services to individuals and business owners. By seeking our sound financial information, we believe you will be better able to identify your goals and make sound decisions, to help you reach these goals.

At Greenwolf Advisors, we also help Finance Functions leverage the power of analytics and deliver much more than accurate financial statements and reports. We help our clients deliver forward-looking, predictive insights that help shape the business strategy, controlling the strategy execution by taking ownership of the organizational data and improve day-to-day decision-making in real-time.

Services offered by Greenwolf Advisors :

Company Registration

Steps On How To Start A Business?

“Yes, I can do it!” I can start a business. But, Steps On How To Start A Business?

There is a fire within us to make a dent in the universe. We synonymously call it as passion, which can achieve anything. But, a passion without direction will lead us nowhere. It needs to be put into action, not abruptly, but in an organized way. Let’s climb up the stairs step by step:

The Vision: Steps On How To Start A Business Put your clear glasses on! Look ahead, 5 years ahead. What do you see? Where is the market heading? Where do you want to see your business in that market? That’s a vision. I am sure it looks beautiful. Now let’s come back to reality and get back into action.

The Gameplan: The beautiful vision you just saw, let’s put it into a structure and draft the route to reach there. It will not only help you understand your existing situation, strength and weakness of your business, but also help you to start a business and be on track. If you are looking for an investor, then it is essential to have a plan.

A business plan for Steps On How To Start A Business generally includes:

Products/Services: List down your products and services, their features, their advantages and competitiveness. Why would your customers buy your product?
Market Research: Conduct a research on the industry you are operating, understand the market size, growth potential, trends in the market, players in the market and their profit margins. This helps in understanding the potential customers and your strengths and weaknesses.
Business Profile: It includes your business’s name, its activities, and its structure (proprietorship, partnership, LLP, private limited company, or one-person company). Every structure has its own pros and cons. (You can know the suitable structure here).
Team: Divide the business into departments: marketing, finance, administration, IT, etc. You can either have a team in-house or outsource it to the experts. At the initial stage, outsourcing is a better option as you can avail the specialized services of experts at a very affordable cost. We can also play a role of a financial expert for your business at a very affordable cost.
Operations: It lays down where your business operations will be conducted and how will they be conducted. Furniture requirements, machinery, equipments, stationery, water, electricity, etc.
Legal and Financial: If your business needs to comply with any legal formalities or obtain license before commencing the business. You also must make a budget with estimates of finance and cash flow that will be incurred for business operations and the income that would be generated. How much profit/loss can be made every year and if it is adequate for business to survive and grow.
Scaling the business: A plan should be in place laying down means and methods to promote your business and the regions where you aim to promote.

You can easily prepare a business plan, but if you need help in preparing it, CA In Delhi is always there to help you in building the same.

Take Off: You have a vision, you have a plan, now all you need is an action. Come on, fire the cylinders! Start a business.

What Needs To Be Done?

Register your business: First step is to get registered. You can choose the entity form that suits you the best. A proprietorship, partnership, LLP or a private limited company. Reminding you: When in doubt, ask us! If you are confused on what suits you the best, read here, or if you prefer a call over reading, feel free to call us
There are several benefits of registering your business under Startup India Scheme and Udyog Aadhaar If your business meets those criteria, don’t miss out registering under them.
Obtain License: License requirements are there if you operate in certain industries. Like if you intend to start a delicious food business, then food license is mandatory from FSSAI. If you are a business with wings, and intend to import or export, then Import Export Code (IEC) is needed.
Register under GST: If you are selling goods or if you are providing services, it is mandatory for you to register under GST
Fund Raising: If you have your own funds, amazing! But, if you are looking to raise them, you can do raise funds through a loan or investors. Investors generally provide funds in return of equity, while banks lend loans in return of interest and principal repayments at regular intervals (monthly). You need to prepare financial statements and projections to obtain the same. (Don’t worry if you can’t prepare them, we can help you with the same)

Stability and Scaling
The primary requirement for stability in an organization is meeting legal compliances. Violation of these compliances will not only screw up your finances, but also keep you occupied in unproductive legal tussles, which can drain your mind and energy.

Pay taxes on time, make sure you are filing returns for the same. If you are a private limited company or LLP, make sure all the compliances with the Ministry of Corporate Affairs are met, and accounts are updated. Ask us, whenever needed.

Find a mentor. Take this advice seriously! Richard Branson, founder of Virgin Group, who rose from rags to riches, says “It’s always good to have a helping hand at the start. I wouldn’t have got anywhere in the airline industry without the mentorship of Sir Freddie Laker [founder of Laker Airways].

Zig Ziglar said, “A lot of people have gone further than they thought they could because someone else thought they could.” A mentor can provide pearls of wisdom, great insights, and encouragement along the way to help you make thoughtful choices. They can talk about the business building process, industry trends, administration challenges, marketing strategies, and a lot more than you can think.

Start invading the market: Show your brand’s presence everywhere. Go all out with marketing and advertisements. Reach out to people through emails, social media, magazines, TV, radio and all other means. Ah, obviously within your budget, or else you will lose the battle if you run out of funds.
New ways of marketing have emerged, but nothing can beat ‘word of mouth’. Networking is still the most powerful way of marketing. Attend community events, networking groups, seminars, gatherings, etc. Just show yourself, sell yourself!

Enjoy the journey of success by following the Steps On How To Start A Business. You are already an entrepreneur, a hustler, someone who has set his eye on the goal. Keep working and don’t forget to enjoy this beautiful journey of entrepreneurship. Stay financially healthy and prosperous, take help of CA In Delhi whenever needed.

Mail at [email protected]

Call at +91-9711430728.

Category: Company Registration