Registration of Private Limited Company in India

 

Private Limited Company Registration

 

Owning a business is a dream of many for achieving financial freedom and be their own boss. In the recent times, India has become one of the most preferred countries for starting or setting up a business across the globe. The business policies, Foreign Direct Investment (FDI) policies, startup culture and ease of doing business here, are helping people to incorporate their own entities.

One of the most popular forms of business model is the Private Limited Company Registration in India. One can enjoy the following benefits by this form of business setup in India-



1.      It is considered as a separate legal entity compared to its shareholders.

2.      Shareholders have a limited liability

3.      One can easily register under the Startup India Scheme with this business model.

4.      It is easy to add and even remove the shareholders and directors.

5.      A Private Limited Company Registration in India enjoys a brand reputation compared to other business models such as Partnership or proprietorship firms.

6.      It enjoys a lower taxation benefits compared to partnership firm or Limited Liability Partnership (LLP).

7.      To raise money from Angel Investors, Private Equity Funds or VC funds etc., a private company is most suitable.

 

Requirements of Private Limited Company Registration in India:

 

To incorporate a private limited company in India, the following essentials are must-

1.      Minimum of Two directors are required.

2.      It can also have foreign directors as well.

3.      Minimum of two shareholders be there in the company. They can be either an individual or a company.

4.      A registered office address in the local area serving as place of business of the          Private Limited Company Registration in India.

5.      Paid-up capital for operating the business setup in India

 

Process of Private Limited Company Registration in India:

 

The private company incorporation in India involves a set of steps that are to be completed. These steps are to be completed before the company has been setup as well after the registration of the company with the Registrar of Companies (ROC). Therefore, we have categorized the process steps into two depending upon its time of completion. These are as follow-

1.      Pre-Incorporation Steps: It includes-

a.       Application for obtaining the Digital Signature Certificate (DSC) for all the directors.

b.      Application for Name approval of the company.

c.       Application for Director Identification Number (DIN) for all the directors.

d.      Application for PAN (Permanent Account Number) and TAN (Tax Account Number).

e.       Application for registration under the Provident Fund (PF) and Employee’s State Insurance (ESI).

f.       Preparing the company’s Memorandum of Association (MoA) and Articles of Association (AoA).

g.       Obtaining the Incorporation certificate or Private Limited Company Registration in India 

 

2.      Post-Incorporation Steps: It includes-

a.       A current bank account opening

b.      Application for business commencement certificate.

c.       Application for Registration under Goods and Services Tax (GST).

d.      Appointing the Auditors (Qualified Chartered Accountants) within 30 days of Private Limited Company Registration in India.

e.       Organizing the First Board Meeting of the company within 30 days of incorporation.

 

Annual Compliance List for Private Limited Company Registration in India:

 

Once a private limited company is incorporated as per the Companies Act, 2013, it has to fulfill annual as well as periodical compliances such as-

 

1.      Accounting: The private limited company registration in India is required to update its Books of Accounts on a day to day basis.

2.      Conducting Audits: Each company is required to conduct Statutory as well as Tax audits in the company for true and fair operations.

3.      Financial Statements: The companies are required to prepare its financial statements that include Profit and Loss Account, Cash Flow Statement and Balance Sheets for each financial year.

4.      GST Returns: If the turnover of the company is more than Rs. 5 Crore, the company is required to file 24 GST Returns each year (2 in each month). If the turnover is less than that, then 16 GST Returns are to be filed every year (one for each quarter and one for each month).

5.      Income Tax Returns: Income Tax Returns are to be filed by the Company annually.

6.      ROC Compliance: A Private Limited Company Registration in India is required to hold four Board meetings and an Annual General Meeting (AGM) each year.

7.      ROC Returns: The companies are required to file 6 returns with ROC every year.

8.      TDS Returns: A total of 8 Tax Deducted at Source (TDS) Returns, are to be filed by the Private Limited Company Registration in India.

 

Keyword: Private Limited Company Registration in India, Business Setup in India

 

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