A private limited company is a type of business entity that is incorporated under the Companies Act 2013. It is a best form of businesses for all sizes, as it offers limited liability to its shareholders and other benefits such as tax savings and easier access to funding.
The Benefits of Registering a Private Limited Company in India
There are many benefits to registering a private limited company in India. Some of the most important benefits include:
- Limited liability: The shareholders of a private limited company are only liable for the debts of the company up to the extent of subscribed share capital in the company. This means that your personal assets are protected in the event that the company goes bankrupt.
- Tax benefits: Private limited companies are subject to lower taxes than other types of businesses. This can save you money on your taxes each year. Right now Private Limited Incurs approx 25.16% as income tax which is very effective in case of companies with higher PAT as it rate of 25.16% includes surcharge of 10% as well.
- Easier access to funding: Private limited companies are more likely to be able to obtain funding from banks, NBFC and other financial institutions. This can help you to grow your business and achieve your goals.
- Enhanced credibility: Private limited companies are seen as more credible than other types of businesses. This can help you to attract customers and partners. And it is globally accepted throughout the world.
How to Register a Private Limited Company in India
The process of registering a private limited company in India is relatively straightforward. However, there are a few steps that need to be followed in order to complete the process successfully.
Step 1: Choose a name for your company and Filing it thought Spice+A on MCA
The first step is to choose a name for your company. The name must be unique and must not be already in use by another company. You can check the availability of a company name on the website of the Ministry of Corporate Affairs.
Step 2: Prepare the SPICE (MoA) and SPICE (AoA) , AGILE, INC9 and Other Forms Online in Version 3 Portal of MCA.
The next step is to prepare the Memorandum of Association (MoA) and Articles of Association (AoA) and prepare other necessary forms online by providing all the information required by forms. These documents set out the company’s constitution and its rules and regulations and the objective for which company would work along with other details required for company formation. You can get help with preparing these documents from Efilingcompany.com.
Step 3: Download these forms once filled and Attached Digital Signature
Once the MoA, AoA, INC9, AGILE have been prepared, you need to upload them with the ROC along with other required documents after attaching Digital signature, a list of directors and shareholders, and the company’s address. All documents must be of digitally signed by Directors along with signed by either Practising Chartered Accountant, Practising Company Secretary or Advocate.
Step 4: Pay the registration fees
There is a fee payable to the ROC for registering a private limited company. The fee varies depending on the state in which you are registering your company.
Step 5: Obtain a certificate of incorporation
Once the ROC has processed your application, it will issue a certificate of incorporation. This certificate is proof that your company has been legally registered. Now a Days with Certificate of Incorporation, PF Registration, ESI Registration, PAN of the company and TAN of the company and PT Registration also provided along with COI.
Registering a private limited company in India can be a complex process, but it is essential if you want to set up a business in India. By following the steps outlined above, you can ensure that your company is registered correctly and that you are compliant with all relevant regulations.