Start-ups and business who aspires growth for higher and exponential growth prefers to incorporate a Private Limited Company as a most suitable structure of business. When a business gets registered as a Pvt Ltd Company is governed by the Companies Act 2013 under Ministry of Corporate Affairs popularly known as MCA.
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Why the Private Limited Company is a preferred type of business for the Start-up enables?
Private Limited Companies are generally most preferred structure by startups due to the flexibility, high stability and wider growth opportunities that are provided by this business structure. Further, it also assures the separate legal survival from the members of the company. Therefore, it can also engage in the contracts and legal proceedings in its own name. Also, the status of a company is not affected by any change in members and management.
The Board of Directors or the specialized managerial board is profitable for members those who are interested in investing in the venture. In case where the Board works on remuneration, the members also receive dividends as profit-sharing.
The private limited company provides various funding options in the form of
- Private Equity,
- ESOP,
- Angel Investors,
- Venture Capitalists
This ensures better compatibility for internal and external funding options. Private ltd company is also most preferred by banks and lending agencies because of its credibility.
A private ltd company can further enjoy the benefit of registration under the Startup India Scheme of the Government of India. By registering in this scheme, several benefits can be availed by the company that includes tax exemptions for the recognized startups.
Due to these reasons, Private ltd Registration is the priority as well as the preference for both family-based businesses and start-ups. Also,Service-based businesses tend to choose Limited Liability Company (LLP) whereas Private Limited is better suited for organizations which are related to product-based and growth-oriented businesses.
Is it complicated to Register a Private Ltd Company?
The process of Company Registration is not at all acomplicated one, you can get your dream venture registered at the ease of your home. As the registration process is completely online. However, as you know it is the legal procedure and that is why it is advised that you should hand it over to the professional only.
Steps to Register a Private Limited Company are as follow: –
Step-1 Checking the Name Availability and reservation of the name.
At an initial stage an applicant has to search for a name which is not already registered on the MCA Portal as well as Trade Mark. The proposed name of the company should always be as per the guidelines provided by the department and once the applicant decides the proposed name of the company,he or she can immediately file for the Name Reservation along with the prescribed fees 1000/- in SPICe- PART A
Once the name gets approved it is valid for 20 days. However, you can extend the date by filing the fees for extension.
Step-2 Filing of SPICe+ PART B and all the attachments
- AGILE-PRO-S
- Form INC-33, E-MOA
- Form INC-34, E-AOA
- Form INC 9
Documents to be attached in the SPICe+ PART B
For Members/Subscribers
- Self-attested copy of PAN Card
PAN card is mandatory in the process of company registration.
- Identity Proof
Submit thecopy of anyone of the following-
- Driving License
- Passport
- Voter Card
| The documents need to be self-attested. |
- Address Proof
Copy of the Bank Statements or Utility Bills. (Anyone)
(In utility bills you can submit GAS bill/ Telephone Bill/Mobile Bill/Electricity bill) Please make sure the utility bill is not older than 2 months from the date of submission to MCA and should also be Self-Attested.
- Passport Size Photograph
Submit the recent coloredpassport size photographs.
- Details of Qualification and Place of Birth.
Only the basic details of the qualifications and place of birth is required, no documents shall be attached in support.
For Registered Office of the company
Address Proof of Company or Place of Business
Anyone, self-attested Utility Bills which includes Gas Bill, Telephone Bill, Mobile Bill, Electricity Bill) or Bank Statement can be submitted to MCA. It must be self-attested and should not be older than 2 months from the date of submission to MCA.
If in case the Place of business is on Rent or lease
Landlord Authorization, if the property is on rent or lease is required to be submitted stating the consent to use the premises as the principal office of the proposed company.
No Objection Certificate
NOC is mandatory because both company and owner has the distinct Identities. It must be submitted by the person whose name is mentioned in the utility bill. Even if the company is on the name of the owner.
Step-3 Fee Payment for PAN/TAN and Stamp Duty
The next step is to pay the PAN/TAN fee of Rs 131/- to the department and the stamp duty which is not fixed and dependent on the jurisdiction where the company is getting registered.
Step-4 Certificate of Incorporation
Once the process of incorporation is complete from the professional hands areand duly filed to the departments with the fees. The Department will verify all the documents and if finds everything at the best pace shall issue the Certificate of Incorporation (COI) by which the Incorporation Process is set to be completed successfully. On the other hand, the department can also send back the form for making correction which you have to resubmit by making all the concerned corrections marked by the department.
Keytakeaways!
www.mca.gov.in is the online government portal which has lakhs of human traffic on the daily basis. It is suggested that for the better vision of the website always use Internet Explorer as the standard browser which can make your registration process bit easy as compared to other browsers.
Are you looking for Private Company Incorporationat low cost?
At Compliance Calendar LLP we have the group of professionals who are experts in the Company Registration Process, and they can provide you the complete handholding throughout the Incorporation Process. In case you have any doubts, feel free to reach us at 9988424211 or you can also write your thoughts to us at info@ccoffice.in.
