A private limited company is essentially a company formation structure held by two or more private members (fewer than 200). The most significant advantage of forming a pvt ltd company registration is that the directors’ liabilities are greatly reduced because the liability is distributed to all shareholders.
As a result, an increasing number of startups are opting for this type of business structure.
- How to start with your company?
With the development of a startup ecosystem across the country, more people are seeking to enter the world of entrepreneurship. So, if you are a business owner and have decided to enter the business world, it is critical that you register your company under the proper structure.
- What is a private limited company?
A privately held organisation for low-tier businesses is an excellent investment for small-scale entrepreneurs. That is where the numerous advantages of forming a private limited company can be seen. A company of this type limits the owner’s liability for the shareholdings and prohibits shareholders from publicly trading stocks or shares.
#1. Document required for registering a company
The DSC, or digital signature certificate, should be obtained by each shareholder and director of the Pvt. Ltd company. It is used on documents to safely and securely file e-forms.
As a result, each candidate must provide the following:
- Phone number
- Email address
- Aadhaar card
- PAN card
- Passport-sized photos
#2. Register for a name of the company
As soon as you have some genuine company names in mind, you can select the best two names in SPICe+ Part A form. This is primarily used to reserve a fantastic company name for the new organisation. To submit the form, it is best to seek assistance from practicing professionals.
The following fields are included in the form:
- The company type
- The company category
- Its sub-category
- The primary division of the industrial activity
- The description of the primary division
- The proposed name of the organisation
#3. Details of the proposed company
In the SPICe+ Part B form, you must fill in the critical business information. Ensure that the information is given to the professional.
Simply put, the procedure consists of eight critical steps:
- Provide details of the capital brought into the business;
- Provide the address of your office from which you intend to operate;
- Include the Director Identification Number or DIN of the company’s Director; and
Depending on the registered address and authorized capital, each union territory will calculate government charges for company registration – so be aware of the payable stamp duty amount.
Next few steps are –
- The company would need TAN and PAN accounts to carry out the operation;
- Include documents required in the proper formats as attachments; and
- Include a digital signature declaring that you are adhering to the Companies Act 2013 rules.
- At the end, the practising professional or CA must provide their digital signature.
The Final Words
Do you want to learn how to set up a private limited company in India? The first step is to register a private limited company and maintain all details correctly.
Currently, the process of registering a company in India is much simpler. In this article, we will take you step by step through the process of forming a private limited company in India.