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Things to consider before you register a private limited company

by priaanca_singh

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.

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