Private Limited Company Registration
Ideal business structure for Small and Medium sized Enterprises going for Partnership
Information about private limited company registration
Private Limited Company registration is the most popular legal structure option for businesses in India. Private Limited Company can have a minimum of two members and a maximum of fifty members. The directors of a Private Limited Company have limited liability to creditors. In a case of default, banks / creditors can only sell company's assets but not personal assets of directors.
Start-ups and growing companies prefer Private Limited Company as it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to pull in top talent. Private Limited Company Registration can be done through TaxOSmart in Delhi NCR, Mumbai, Bengaluru, Chennai and other Indian cities.
Factors to Consider in Company Name Selection
Short & Simple
The name should be concise and not be too long. People should be able to pronounce it easily and they should be able to remember your company's name the first time they hear or read it.
Suffix
The name of your company should end with the suffix "Private Ltd" in a case of a Private limited company and "LLP" is a case of a limited liability partnership.
Meaningful
The name of your company should be related to your business. It should fit the company's branding. For example, Infosys refers to information systems or IT technologies.
Should not be illegal / offensive
The name of your company should not be against law. It should not be abusive or against the customs and beliefs of any religion.
Unique
Name of your company should not be same or identical to an existing company or trademark. You can go to search.TaxOSmart.com to check if your company name is identical to others. You should ideally avoid plural version e.g., "Flipkart's" or changing just letter Case, spacing or punctuation marks in an existing company name.
Steps For Company Registration
Application of DSC & DPIN:
First of all, the partners have to apply for Digital signature and DPIN. Digital signature is an online signature used for filing and DPIN refer to Directors PIN number issued by MCA. If the directors already have DSC and DPIN, then this step can be skipped.
Name Approval:
You need to provide 3 different options for your company name to MCA of which one will be selected. Names provided should ideally be unique and suggestive of company business.
MOA & AOA submission:
Once name is approved, one needs to draft Memorandum of Association and Articles of Association. Both MOA and AOA are filed with the MCA with the subscription statement.
Get Incorporation Certificate:
It typically takes 15- 25 days to form a Private limited company and get the incorporation certificate. Incorporation certification is a proof that company has been created. It also includes your CIN number.
Cheaper infrastructure:
Charges are lower for MSME registered company for facilities such as electricity and VAT exemptions. In fact, other business services such as patents are also cheaper for MSMEs
Apply for PAN, TAN and Bank account:
Then you need to apply for PAN and TAN. PAN and TAN are received in 7 working days. Post this, you can submit the Incorporation certificate, MOA, AOA and PAN with a bank to open your bank account.
Private Limited Company Registration
Ideal for Start-ups Going for Funding & Growing Business
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