Private limited company registration
Private Limited Company Registration: A Simplified Guide by Lawgical India
Lawgical India is a company created to simplify legal content and make it easily understandable by developing simplified resources accessible to anyone and everyone.
Among all forms of business entities in India, the Private Limited Company is the most preferred type of business organization because it never provides a limitless liability to its members and also provides a separate legal entity to function on its own on behalf of the promoters. Today, the process of getting a Private Limited Company registered is easier than ever with automated online procedures available, getting your own business off the ground is less of a chore with the help of professional companies such as Lawgical India.
In this blog, we will explain the entire process of Private Limited Company registration in India and showcase, how Lawgical India can assist in as well as provide legal advice on each step of the procedure.
What do we mean by Private Limited Company?
A Private Limited Company is a legal entity that has limited the responsibility of shareholders to the amount they contribute towards the possession of the company’s share. It is thus not its members which therefore means that the company has the legal entity apart from its owners.
Key Features of a Private Limited Company:
Limited Liability: The members, it also limits liability to the amount of their share in the company making personal assets off limit to business risks.
Separate Legal Entity: The company is separate legal entity, which will introduced after formation of the company and will remains the same even if ownership or management has changed.
Capital Raising: One can easily get funding from venture funding or equity investments as it has legal viability.
Credibility: Having your business as a registered Private Limited Company is a plus for your business, particularly when approaching investors, contractors and consumers.
Based on these benefits, a number of the business lovers choose a Private Limited Company type to legalize and develop the existing enterprises. We have explained the company registration in India through the services of Lawgical India, a renowned consultancy firm in India.
Advantages of registering for a Private Limited Company
Before we delve into the registration process, let's explore the key benefits that come with registering a Private Limited Company in India:
Limited Liability Protection: The main advantage of registration as a Private Limited Company is the liability shield. As regards financial contractual risks, shareholders’ (members’) personal resources are shielded.
Ownership Transferability: In the case of the Private Limited Company business structure, it is easy to transfer the ownership by selling or transferring shares.
Attracting Investment: Since it is a registered company, it becomes easy to obtain venture capital or even sell share to the public to raise capital.
Credibility & Trust: Registered company benefits your business by improving the image of your business to customers, suppliers, and investors, with confidence in your operations.
Tax Benefits: Private Limited Companies are also privileged to various tax incentives and more significantly the various exemptions allowed under the Companies Act and every other favourable and liberal business oriented tax laws.
With the understanding of the importance of starting a Private Limited Company, let’s discuss how to Register a Private Limited Company in India with the assistance of Lawgical India.
Measures for Registering Private Limited Company In India
The process of Incorporation of a Private Limited Company is divided into following steps. As much as it might appear to be a complicated method, at Lawgical India, every phase is made as easy and as fast as possible. Here’s a breakdown of the essential steps:
1. It is mandatory for the online tendering process that the participating entities must possess Digital Signature Certificate (DSC).
Because the registration process is done online the first requirement that is needed is a Digital Signature Certificate (DSC) for the proposed directors. The DSC is used for managing an organization’s documents electronically through signing. Any person that want to make a proposal as one of the directors of the company must have a DSC in order to continue with the registration process.
This organization makes you get the DSC from the right agency within a short period without much effort which is very important getting registered as soon as possible.
2. Apply for Director Identification Number or DIN
The next step is to apply for DIN to every of the proposed directors of the company. A DIN is a director identification number provided by the Ministry of Corporate affairs (MCA) to directors of companies in India.
The procedure to obtain DIN includes filing the necessary documents like identity proof, proof of address of the director. If required Lawgical India can also help in filing the documents and making the application for DIN.
3. Selecting a Company Name and Section 13(g) Name Reservation
Having a proper name for your Private Limited Company is mandatory it should be unique, must represent the business, and should follow the guidelines provided by Ministry of Corporate Affairs (MCA). The latter should not be coincidental to the name of any other company or trademark.
You are obliged to file the name approval which include name search to find out if the name qualifies the MCA guidelines. Lawgical India provides advice on the name selection process for your firm and dealing with the authorities in order to get the necessary permissions, thus saving time for the clients.
4. Contribution towards preparing Memorandum of Association (MOA) and Article of Association (AOA)
Two key documents are crucial for the formation of a Private Limited Company:
Memorandum of Association (MOA): This document contains aims and objectives of the company, areas of operation and authority that the company possesses.
Articles of Association (AOA): Under the AOA the process by which the company manages itself is outlined such as arrangement for conducting meetings or appointment of directors.
Both documents are legal requirements, though much of their content is set out in the Companies Act. Legal India provides services in drafting the MEMORANDUM OF ASSOCIATION AND ARTICLES OF ASSOCIATION as per legal requirements for your company.
5. Filing of Incorporation Forms with MCA
After preparing the MOA and AOA, the next decision is to submit incorporation forms with the Ministry of Corporate Affairs (MCA). Some of them include forms such as SPICe+ which is Simplified Proforma for Incorporating Company electronically, for incorporation of company and DIR-12 for directors appointment.
Lawgical India provides for the filing of all such forms with MCA with ease while all documents are correctly filled and submitted without incidents.
6. That was why the Certificate of Incorporation had to be issued.
Once the application has been completed and submitted and approved by the Ministry of Corporate Affairs (MCA) then a Certificate of Incorporation is issued. It is officially issued to announce the creation of the Private Limited Company and bears the CIN of the company.
It becomes a legal entity of its own with limited liability at the present time. This certificate is an important legal requirement and it is used to act in proof of the existence of the company.
7. PAN and TAN Registration
After the company is incorporated it is important to obtain the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN). These are useful for taxation rules for the company since it operates in India and is bound to meet the tax requirements of the country.
Lawgical India will help you get PAN and TAN as your company to explain all the taxes needed.
8. Opening a Bank Account
For ease and efficiency of carrying out the company’s transactions, you must open the company’s corporate account. To do this you will be required to produce the following: certificate of incorporation, PAN, article of Memorandum of Association (MOA), Articles of Association (AOA), and proof of the registered office.
Having one single business account in a corporate bank is mandatory when doing business transactions because there is a clear distinction between business and personal money.
What Makes Lawgical India Unique for Private Limited Company Registration?
So, to register a Private Limited Company is possible all by yourself, but it’s always better to turn to a professional help. Lawgical India provides professional solutions for every procedure of company registration along with legal issues and quick solutions whenever needed.
End-to-End Support: Ranging from getting DSC and DIN to filing incorporation forms to getting registrations, Lawgical India offers it all.
Expert Guidance: Through our team of professionals, your company registration process is done professionally and in compliance with the current laws.
Timely Registration: Using Lawgical India, you can be guaranteed that our registration process will be fast and seamless, here at Lawgical India.
Conclusion
Privately held Limited Companies has many advantages after its registration which include limited liability, increase credibility, and increased funding opportunities . When you engage the services at Lawgical India you have professional assistance needed during the process of registration and all the necessary compliance to create a sound foundation for your business. Interested in starting your entrepreneurial journey in India? Do not hesitate to contact Lawgical India for the easy and fast registration.
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