Startup Counter

Generic selectors
Exact matches only
Search in title
Search in content

THINGS TO KNOW BEFORE YOU REGISTER-
PRIVATE LIMITED INCORPORATION

INTRODUCTION:

  • Private Limited Company is the most common business structure. It is the most accepted business organization. Private company is incorporated under Companies Act-2013.
  • Private Limited Company, the most popular legal structure for businesses, should be chosen by anyone looking to build a scalable business. Start-ups and growing businesses choose to register a company in India because it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to attract top talent.
  • As these entities must hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA), they tend also to be viewed with more credibility than a Limited Liability Partnership (LLP), One Person Company (OPC), or General Partnership. 
  • At OSPS, we are continuously available to help you understand how to register a private limited company. All such businesses must have at least two directors and shareholders on inception.

ADVANTAGES OF PRIVATE LIMITED COMPANY

  • Perpetual Existence
  • Separate Legal Entity
  • Uninterrupted Existence
  • Borrowing Capacity
  • Easy Transferability of shares in company limited by shares
  • Owning Property in its own name

DOCUMENTS REQUIRED

  • Copy of self-attested PAN Card and Aadhar Card of directors
  • Passport size photograph of all the directors and subscribers
  • Copy of self-attested Voter ID/ Driving License/ Passport of directors
  • Copy of Rent agreement (If rented property)
  • Electricity/ Mobile Bill/Telephone Billas business address proof (not older than 2 months)
  • Landlord NOC (Format will be provided)
  • Bank Statement/ Electricity/ Mobile Bill/Telephone Bill of director.(not older than 2 months)

MINIMUM REQUIREMENTS FOR PVT. LTD.

  • Minimum of 2 Shareholders
  • Minimum 2 directors (Shareholders can also become directors)
  • Director Identification Number (DIN) of proposed directors
  • At least one director should be Resident in India

BASIC

All Inclusive Fees
10999
  •  

PRO

All Inclusive Fees
18899
  •  

PREMIUM

All Inclusive Fees
28899
  •  

PROCESS FLOW OF REGISTRATION

  • Minimum of 2 Shareholders
  • Minimum 2 directors (Shareholders can also become directors)
  • Director Identification Number (DIN) of proposed directors
  • At least one director should be Resident in India

HOW IS A PRIVATE LIMITED COMPANY DIFFERENT FROM PARTNERSHIP FIRM AND LLP?

CatergoryPartnershipCompanyLLP
Name of Entity Any name as per choice Unique Name Unique Name
Perpetual Succession It does not have perpetual succession as this depends upon the will of partners It has perpetual succession and members may come and go. It has perpetual succession and partners may come and go
Legal Proceedings Only registered partnership can sue third party A company is a legal entity which can sue and be sued A LLP is a legal entity can sue and be sued
Liability of Partners/Members Unlimited Limited to the amount required to be paid up on each share. Limited, to the extent their contribution towards LLP
Cost of Formation The Cost of Formation is negligible There is no Statutory fees for incorporation of Company up to 15 Lakh Authorized Capital The cost of Formation is comparatively lesser than the cost of formation of Company.
Formalitie of Incorporation In case of registration, Partnership Deed along with form / affidavit required to be filed with Registrar of firms along with requisite filing fee Various e-forms along the Memorandum & Articles of Association are filed with Registrar of Companies with prescribed fees Various e-forms are filed with Registrar of LLP with prescribed fees
Annual Filing No return is required to be filed with Registrar of Firms Annual Financial Statement and Return are required to be filed with the ROC every year. Annual Statement of accounts and Solvency & Annual Return is required to be filed with ROC every year.
Audit of accounts Partnership firm is only required to have tax audit of their accounts if the Turnover exceed Rs. 2 Crores Companies are compulsorily required to get their accounts audited annually. LLP are compulsorily required to get their accounts audited if turnover exceeds Rs. 40 or its contribution exceeds Rs. 25 Crores.
DIN / DPIN The partners are not required to obtain any identification number Each director is required to have a Director Identification Number. Each Designated Partners is required to have a DPIN.
Number of Members Minimum 2 and Maximum 20 2 to 200 members in case of Private Company Minimum 2 partners and there is no limitation of maximum number of partners.
Charter Document in which scope is defined Partnership Deed Memorandum and Article of Association LLP Agreement

FAQ on PRIVATE LIMITED COMPANY

Any individual/organization can become the member of the private limited company including foreigners/NRI. However, the individual must be atleast 18 years old and should have a valid PAN card.

In that case, you have an option to register a One Person Company (OPC).

Digital Signature is a digital equivalent of a handwritten signature or stamped seal, but offering far more inherent security, a digital signature is intended to solve the problem of tampering and impersonation in digital communications.

DIN Number or Director Identification Number is a unique 8 digit number that is required for any existing or proposed director of a company. It is mandatory for every director and a proposed director to have a DIN.

Yes, a Foreign National or an NRI can be a Director of a Private Limited Company in India after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident Indian.

No, it must be situated in India Only

Yes, a foreign company may do so but the new company must have a resident Indian Director.

Every Company shall have at least one Director who has stayed in India for a total period of not less than 182 days in the previous calendar year.

Yes, an NRI or Foreign National can become a Director in a Private Limited Company. They can get a DPIN from Indian ROC. Also, they can be a majority shareholder in the company. But, at least one Director on the Board of Directors must be an Indian Resident.

APPLY FOR PRIVATE LIMITED INCORPORATION