Private Firm Reg.

What is Private Limited Company?

In India, the most common type of "legal structure" is a private limited company. A Private Limited Company Registration in India is governed by the Ministry of Corporate Affairs and is incorporated under the Companies Act of 2013. It is legally distinct from its owners. It is widely used because it provides numerous benefits to its directors, such as limited liability, which means that if the company defaults, bank/creditors can only sell the company's assets and not the directors' personal assets. Starting a business in India is a pipe dream unless you have a proper business entity to back it up.

Everyone, from veterans to novices, from budding start-ups to established entrepreneurs, and from north to south India, regard it as the best business entity. You can use our services to register your Private Limited Company. We have served clients from major cities throughout India for Private Limited Company Registration.

Lexlivo team of knowledgeable and efficient experts is always available to help and advise you on the process of forming a Private Limited Company. Lexlivo is a leading business startup consultant in India, offering a wide range of company registration services.

Procedure for Company Registration

● Complete the Private Limited Company Application Form
● Provide us Pertinent Documents
● Make an Online Payment
● Our executive will manage the Application process for Private Limited Company registration
● We will mail you a Certificate of Private Limited Company Registration
 

Documents Required for Company Registration

● Self-attested PAN card from each prospective partner is required for the Private Limited Company Registration Process.
● Self-attested passports, election cards or voter identification, Aadhaar cards, or any other form of identity verification acceptable for Indian citizens and required for Private Limited Company Registration Documentation.
● The most recent electricity or telephone or gas or mobile or other utility bills from the company's location that are less than two months old can be used as proof of the registered office address.
● Also included are the most recent two passport-size photos.
● All directors and members must submit two months' worth of bank statements.

Private Limited Companies Registration Process

● Step 1
Submit an application for the reservation of the Company's name via Spice PART. A form that can be accessed through the MCA portal.
● Step 2
Selecting an appropriate name for the Private Limited Company. Private Limited Company name suggestions can also be obtained from Lexlivo Private Limited Company Registration experts.
● Step 3
After receiving the application, the MCA will either approve or reject it within 3-4 days.
● Step 4
If the name is approved, the MCA will send us a name permission letter, and we must register the company within 20 days.
● Step 5
To extend the grace period before the 20-day grace period expires, an additional fee must be paid.
● Step 6
To get the DSC of the company's directors which will aid in the authentication of documents uploaded online.
● Step 7
Using SPICE PART B, electronically draught the company's MOA and AOA.
● Step 8
Submitting an online application to form a Private Limited Company.
● Step 9
The application will be evaluated by the Ministry of Corporate Affairs.
● Step 10
A Certificate of Incorporation, PAN, and TAN will be issued by the department upon the formation of a company.

Advantages of a Private Limited Company

● No Minimum Capital:
There is no minimum capital requirement to form a Private Limited Company, and it can be registered with as little as Rs. 10,000 in total Authorized Share capital.
● Separate Legal Entity:
A Private Limited Company is a separate legal identity in the eyes of the law, which means that the assets and liabilities of the business are distinct from the assets and liabilities of the Directors. A juristic person is someone who isn't a natural or human being. Members of a company are not liable to the company's creditors for such debts. A Private Limited Company separates management and ownership, so managers are accountable for the company's success as well as its failure.
● Tax Efficient:
Because they can claim corporation tax relief on their profits, private limited companies are tax efficient. This can result in significant savings for businesses and increased profits, as well as capital allowances and R&D tax credits. Dividends paid by private limited companies to their shareholders are taxed at a lower rate.
● Uninterrupted existence:
A company, as a separate legal person, is unaffected by the death or other departure of any member and continues to exist regardless of membership changes.
● Limited Liability:
The status of being legally responsible only for a limited amount of a company's debts. As a result, where a company is limited by shares, the members' liability on a winding-up is limited to the amount unpaid on their shares. For example, if a Private Limited Company takes a loan and is unable to repay it, the members are only obligated to pay the amount they own towards their own shareholding, i.e. the unpaid share value. This means that if you have no balance payable on the number of shares you own, you are not liable to the company for any debt or credit amount that remains unpaid.
● Fund Raising:
In India, the only type of business that can raise funds from Venture Capitalists or Angel Investors is a Private Limited Company.
● Transferability of shares is free and simple:
A shareholder's shares in a company limited by shares are transferable to any other person. When compared to the transfer of an interest in a business run as a sole proprietorship or partnership, the transfer is simple. Transferring shares is as simple as filling out and signing a share transfer form and handing over the buyer's shares along with the share certificate.
● Easier to Manage:
Due to the flexibility to set up an unlimited number of bank accounts, income and expense items, and other features, many online accounting software suppliers have integrated into their systems as private limited companies have risen in popularity. These include submitting annual returns and reports to Companies House, holding shareholder meetings, and maintaining accurate company records.
● Owning Property:
As a legal person, a corporation can acquire, own, enjoy, and alienate property in its own name. As long as the company is in business, no shareholder can make a claim on its assets.
● Suiting and being sued:
Suing means to initiate legal proceedings against someone or to file a lawsuit in a court of law. Just as one person can sue in his or her own name against another in that person's name, a company, as an independent legal entity, can sue and be sued in its own name.
● Dual Partnership:
A company can enter into a valid and binding contract with any of its members under the company form of organization. It is also possible for a person to be in charge of a company while also working for it. An individual can thus hold multiple positions within the organization at once, including shareholder, director, employee, and any other position.
● Borrowing Capacity:
A company has more options for borrowing funds. It can issue both secured and unsecured debentures and accept public deposits, among other things. Even banks and financial institutions prefer to lend large sums of money to corporations rather than partnership firms or proprietary concerns.
● Foreign Direct Investment (FDI):
It is permitted in a Private Limited Company, which means that any foreign entity or foreign person can invest directly in a Private Limited Company.
● Builds Credibility:
The company's specifics are available on a public database, which increases the company's credibility by making it simple to authenticate the details.

Registration Criteria for Private Limited Companies

● For a private limited company, there must be at least two shareholders and two directors.
● A private limited company must have two directors, at least one of whom must be an Indian citizen.
● In India, there is no minimum capital requirement for forming a private limited company.
● Your company's name is crucial because it creates the first impression in the minds of your buyers, suppliers, and stakeholders. So the factors to consider when choosing a name are that it should be short yet simple, meaningful, not illegal or offensive, unique, and end with the suffix "Private Ltd."

Private “Company registration” is a service, which our firm provides. Private Limited Company registration is one of the most popular form of a “legal structure” for all businesses in India. A “Pvt Ltd.” company is incorporated under the “Companies Act 2013” and is governed by the Ministry of Corporate Affairs (MCA).

You can go through the procedure of “Private Company registration” using our expert services. This whole process usually takes 10-15 days to complete. You are only required to fill out a 10-minute questionnaire.

Our experts at “Lexlivo” charge only Rs.5,999 to carry out the process of registration required for your Private Ltd. Company.

Step 1: Obtaining Digital Signature (DSC) and DPIN Step 2: Application of DPIN Step 3: Name approval Step 4: Form SPICe Step 5: e-MoA (INC-33) and e-AoA (INC-34) Step 6: PAN and TAN application

The following provides a complete list of documents which are required to get your Private Company registered: 1. A Copy of PAN Card of all the directors 2. Passport size photographs of all the directors 3. Copy of Aadhaar Card/ Voter identity card of all the directors 4. Copy of Rent agreement (If the company property is on a renting basis) 5. Electricity/ Water bill (Relevant to the “Business Place”) 6. Copy of Property papers (If the property is owned) 7. Landlord NOC (Format will be provided)

The pre-requisites for the incorporation of a “Private Limited Company” are as follows: ● At least 2 directors and 2 shareholders are required ● The members associated should be between “2-200” ● Every director should have a DPIN ● A copy of PAN card of all the shareholders/Directors or Copy of passport (for NRIs only).

Once the filing of the documents is through, the ROC calls the attorney on a specific date for scrutiny and makes the necessary changes in the “MoA and AoA”, which have been filed. After this is done, the Certificate of Incorporation is granted to the company.

After the registration of the company, the following conditions should be fulfilled: ● Current account should be opened within 30 days of PAN registration. ● Appoint a Statutory Auditor. ● The paid-up capital should be deposited as mentioned at the time 0f registration. ● Issue and allotment of shares.

No, there is no such requirement. Any person can start a business at their “Place of residence or even in their garage”.

● A company limited by shares. ● Unlimited company. ● A company limited by guarantee.

You need to have a minimum capital of Rs.1,00,000 to start a private limited company. You need not have this amount in hand or your bank account. You can show this amount as the pre-incorporation expense of the start-up. Also, you can show the capital as an amount which has been infused in the assets.

If it has been mentioned in the “MoA” and approved by the registrar of the company, then only it is possible to carry out multiple businesses. The businesses could be in the same field or different. Though, unrelated activities like event management and fashion designing cannot be registered under the same company.

There are only 2 conditions for anyone to be a director of a Private Limited Company. These are: 1. He/she should be 18 years or older 2. He/she requires a DIN (Director Identification Number)

Your company needs at least 2 directors to get itself registered as a “Private limited company”.

Yes, for sure. You can become the director of any type of company. But you need to go through the employment rules and make sure they allow you to do so.

You are only responsible for the extent of your investment in the company. Personal assets are not to be procured in case of bankruptcy.

Of course, a private Limited Company is eligible to make FDIs in India.

A digital signature is just like a hand signature, but in this case, it is used for the purpose of being affixed with the computerized reports. A DSC provides validity to the signature.

It is only possible if you provide sufficient proof of it. The address to be provided shall be of the place from where the company receives important information (if any) from the MCA or any other concerned authorities.

“MoA” contains the details of the main, ancillary/ subsidiary, and other objects from the proposed company. While “ AoA” contains the details of the rules and procedures for the routine conduct of the proposed company. “AoA” also contains the details of the authorized share capital and the name of it’s first/permanent directors.

Multiple compliances need to be fulfilled by a private limited company which are: • The company must appoint an auditor. • The company should conduct at least “one AGM (Annual General Meeting) and 4 board meetings (one in each quarter)”. • An auditor must audit the books of the company. • Furthermore, a company shall fill the form AOC-4 and MGT-7 as a part of annual compliance, within the specified time frame. • There should be annual filing of the “ITR” with the “Registrar of Companies (RoC)”.

Business structure Tax rate Effective tax rate Domestic company: (Base rate) (Base rate+ surcharge + CESS) Not availing any exemptions or incentives 22% 25.17% Manufacturing companies incorporated after 1st October 2019 and not availing any incentives or exemptions 15% 17.16% Availing any incentives or exemptions 25% 25%+ surcharge + CESS (4%) In any other case 30% 30%+ surcharge + CESS (4%)

A “Private Limited Company” is easy to grow and to expand more. ● This type of company has greater stability. ● It protects the owner’s assets in the case of bankruptcy. ● Attracts more clients. ● It is easier to procure bank loans and investments from the investors. ● It is very easy to sell a Private Limited Company, as there is very little documentation required and the cost involved in the procedure is not very high. ● Only corporation tax is charged (which is usually lower than the other forms of taxes)

No, we do not charge any extra amount from our clients. Our fees is inclusive of all the taxes and charges involved.

The whole process is online. So, a person needn’t go anywhere for the procedure of registration. You are required to send in your documents via email and fill up our questionnaire to get it done.