Know about Private limited Company Registration in India?

Most of the clients have several questions in their mind regarding the private limited company registration. In this article, we are going to discuss all that questions that are frequently asked by the customers regarding the registration process.

1.     What is a private limited company?

Limited liability means that a shareholder of the company is not liable to the amount of debt and his personal assets won’t be used to pay the amount of debt. It can be started with just two members limiting to a number of 200 members. A Private Limited Company Registration is one that has separate legal entity following the perpetual succession, with a benefit of limited liability for its shareholders.

2.     Is private limited company beneficial for small businesses?

Yes, small business can get themselves registered as a private limited company to get the benefits of credibility and good image of their proposed business in the eyes of the financial institutions, potential clients and the suppliers. It is also helpful for the company in getting loans at less compliance from the clients or the banks while entering into the work.

3.     Do you require high qualification to become a director or shareholder of a private limited company?

Basically no, you don’t require such high qualification to become a director or a shareholder of a private limited company.

4.     What is eligibility criteria used to appoint a shareholder or director for a private limited company registration?

The person should fulfill the following conditions to become a shareholder or director of the company:

• Minimum age of the person should be 21;
• Resident or citizen of India;
• Sound Mind.

1.     What do you mean by a director identification number or DIN?

Director identification number or DIN is required for the individual who intends to become the director of the company. Now, there is no special form used to fill to get a director identification number. You can simply get it by applying for a DIN with SPICe form. It usually takes 3-4 days to get approval. Swarit advisor makes it sure to get a DIN while filling the registration form for a private limited company.

2.     What are the benefits of private limited company registration?

Here are some of the main benefits of private limited company registration:

• Limited liability
• Ease in transferability
• Better credibility
• Supports business growth
• Separate legal existence
• The company can continue its existence, even after the death of any or all directors or shareholder.

3.     What are the main documents required for the registration?

Here is the list of documents you will require for the registration process:

• PAN card
• Address proof
• Identity proof of all the directors
• Rental agreement (incase of rented place)
• NOC from the owner
• Copy of any utility bill
• Bank statement
• Photographs of all the directors

For detailed document list, contact Swarit advisors at ho@swaritadvisors.com.

Can sole proprietorship be converted into a private limited company?

Yes, you can convert your sole proprietorship into a private limited company by following the procedure of the Companies Act, 2013.

What are the basic forms required for the registration process?

Under the rules and regulations of the Companies Act, 2013 you need to fill up the SPICe INC-32 form introduced by the Ministry of Corporate Affairs. Another form you need to fill is MoA (INC-33) and e-AoA (INC-34). These forms are submitted along the SPICe form.

Hope that article was informative for you. To get more information regarding private limited company or to get registration leave an email to Swarit advisors at ho@swaritadvisors.com or you can call them on +919821399320.

Private Companies have now become a very coveted business entity option for entrepreneurs in India. The reason for the same is that there are a lesser number of compliances and regulations as compared to public limited companies. Also, the business can be done more privately in case of private limited companies as opposed to public limited companies, where multiple disclosures have to be made. We hope that the article on the benefits of private companies over public limited companies was beneficial for you.

In case you require more information on private limited companies, public limited companies or any procedural aspect relating the to incorporation of both of these, contact Swarit Advisors.