“Boundless Services, Seamlessly Delivered: Online Nationwide, Offline in Mumbai!”
If you’re looking to embark on a business venture in India, setting up a private limited company is like putting on a shiny suit of armor. With limited liability for shareholders, it offers a shield of protection against any unforeseen obstacles. But like any suit of armor, there are restrictions on who can wear it – only those who meet the requirements can don this protective gear.
On the other hand, an LLP is like a partnership dance. The partners are the choreographers, setting the direction and rhythm for the business. It’s a collaborative effort where everyone has a say in the company’s management and success.
So, if you’re ready to take on the challenge of starting a business in India, you have two options – put on the armor of a private limited company or join the dance of an LLP.
A Private Limited Company (PLC) is one of the most popular type of company in India that is regulated by the Companies Act, 2013. It needs at least 2 Directors and 2 Shareholders, with one Director being an Indian resident and citizen. To register a PLC in India, you need to have a minimum of:
Registering a private limited company has many benefits, such as:
Creating a private limited company in India is a straightforward process, but you need to ensure that you follow the checklist requirements as defined by the Companies Act, 2013:
If you’re a startup looking to get ahead, registering your company in India can give you a major advantage over unregistered businesses. However, let’s be real—navigating the complexities of company registration can be about as enjoyable as a root canal. Lucky for you, our team of experts will hold your hand every step of the way, making the process smoother than butter on a hot piece of toast!
Step 1: RUN Name Approval
The initial stage of company registration is called the RUN Name Approval process. This involves reserving a unique name for your company by submitting a request to the Ministry of Corporate Affairs (MCA). You can suggest one or two names along with a brief description of your business goals in the application. If the MCA rejects the name, you can submit one or two more names. The MCA usually approves name requests within 5 business days.
— and ya, worry not! Our professionals would assist you in selecting the perfect name for your company and registering it with the government.
Step 2: Get Directors’ Digital Signature Certificate (DSC)
In India, regular signatures are not accepted by the Ministry of Corporate Affairs (MCA). Hence, it is necessary to use a digital signature certified by an Indian certification authority for all filings with the MCA. Before incorporating the company, the Directors must obtain digital signatures.
We will help the Directors obtain a DSC from a recognized certifying body. They need to submit their identity documents and complete a video KYC process to get the digital signature. If a Director is a foreign national, their provided passport and other documents need to be apostilled by a nearby embassy
Step 3: Submitting the Company Incorporation Application
After obtaining the required digital signatures, the next step is to submit the company incorporation application in SPICe form along with all necessary documents to the MCA. The application must also include the Memorandum of Association (MOA) and Articles of Association (AOA). Upon review and acceptance by the MCA, an incorporation certificate and PAN for the company will be issued. The entire process usually takes less than five working days for approval.
Keeping up with various compliances is important for a registered company in India. After registration, a company must comply with requirements such as:
To become legally registered, a firm must fulfill certain conditions before its incorporation. These are the conditions that must be met:
To register a private limited company in India, providing valid identity and address proof is mandatory. The following documents are accepted by the MCA during the online company registration process:
To register a company in India, it is mandatory to provide proof of a registered office. The following documents are accepted by the MCA for online company registration:
Note that the registered office can be located at a residential address and doesn’t necessarily have to be a commercial space.
*Side right to view more.
| Particulars | Private Limited Company | LLP | One Person Company |
|---|---|---|---|
| Ideal for | Businesses having high turnover and entrepreneur who need external source of funding. Enterprises with significant revenue and entrepreneurs seeking external funding. | Service oriented business that have low investment needs. Service-based businesses with minimal capital requirements. | Proprietor looking to limit liability and wants 100% control over the business. Business owners who want to restrict liability and retain complete control over their enterprise. |
| Minimum Share Capital | No minimum requirement | No minimum requirement | No requirement for minimum share capital. If capital exceeds 50 lakhs, OPC gets converted to Pvt. Ltd. No minimum share capital is required for an OPC, but it will be converted into a Pvt. Ltd. company if the capital exceeds 50 lakhs. |
| Members Required | 2 members minimum Max 200 | 2 members minimum No Limit | 1 member minimum Min 1 |
| Directors Required | Minimum 2 | Two designated partners | Minimum 1 |
| Statutory Audit | Compulsory | Not compulsory unless partner’s contribution is above 25 lakhs or annual turnover exceeds 40 lakhs It is optional unless the partner’s contribution is over 25 lakhs or the annual turnover exceeds 40 lakhs. | Compulsory |
| Liability of Partners/Directors | Limited | ||
| Foreign Direct Investment | Eligible via automatic route | Not eligible for FDI | |
| Income Tax Rate | 25% | 30% | 25% |
| Statutory Compliance | More | Less | Moderate |
| GST Registration | In case of service if turnover exceeds 20 lacs | Same | |
To register a private limited company in India, the Registrar of Companies (ROC) has some naming guidelines that should be followed. Although some guidelines are subjective, adhering closely to the rules increases the chances of approval. Before applying, make sure the desired name is available.
If all your documents are in order, the company setup process in India can be completed within 15 days, depending on the registrar’s workload.
The process is entirely online, so physical presence is not required. Instead, you would need to submit scanned copies of all necessary documents and forms.
Directors must provide ID and address proof, PAN card (for Indians) and passport (for foreigners). Owner of registered office must submit a no-objection certificate.
As long as you fulfill the annual compliances, your private limited company will remain in existence. Failure to meet these requirements will result in dormancy and eventual removal from the register.
A private limited company must appoint an auditor within 30 days of incorporation, regardless of its revenue. Non-compliance can result in penalties and blacklisting of directors.
These documents outline your organization’s rules, vision, and mission, as well as defining the business and outlining the roles and responsibilities of shareholders and directors.
Two directors are mandatory for a private limited company, with a maximum of 200 members. In case of a sole owner, one person company registration is possible.
No minimum capital required
A salaried person is eligible to become a director in a private limited, LLP, or OPC private limited company, subject to the terms of their employment agreement. Employers may permit their employees to serve as directors in other companies.
LLP cannot be converted into a private limited company as there are no provisions in the Limited Liability Partnership Act, 2008 or the Companies Act, 2013 for such conversion. However, a new private limited company with the same name can be registered for business expansion, provided that the LLP issues a no-objection certificate.
We can register a private limited company within 14-15 days, subject to timely document submission and government approvals. Choose a unique name and have all necessary documents ready to speed up the process.
The company can be registered using the owner’s residential address, provided that a copy of the utility bill is submitted as proof.
Definitely! It is never a stale idea to register a family member as a partner initially, as the director’s shares can be transferred or changed at a later stage.
A NRI or foreign national can be a director and hold a controlling stake in a private limited company, provided they obtain a DIN from the Indian RoC. However, the board of directors must have at least one Indian resident.
Managing your finances without guidance is like driving a car without a steering wheel – you might get somewhere, but you’re more likely to crash.
If we don’t meet your saving ways,
Refund your fees, no delays!
Design And Developed By VERVELOGIC
Copyright © 2023. All rights reserved.
