Private Limited Company is the most preferred type of corporate legal entity in India. It is governed by the Companies Act, 2013. If you want to register a private limited company, a minimum of two shareholders and two directors are required. A natural person can be both a director and shareholder, whereas a legal entity can only be a shareholder of the private limited Company.
Incase of foreign nationals, foreign corporate entities or NRIs are also allowed to become Directors and/or Shareholders of a Company with Foreign Direct Investment (FDI), making it the preferred choice of entity for foreign promoters.
There are several features of a private limited company like limited liability to protect shareholders, ability to raise equity funds, enjoy separate legal entity status and has perpetual existence which make it the most recommended type of business entity for millions of small and medium businesses structures which are owned by the family or managed professionally.
In this write-up you will read about Advantages and Documents required for Pvt Ltd Firm Registration
Here, are some of the advantages why people choose to incorporate Private Limited Company whenever it comes to company registration.
Ease to form
A Private Limited Company can be incorporated with minimum 2 directors by filing Spice+ Form INC-32 along with link form Spice MOA (INC-33) and Spice AOA (INC-34)Once all the documents get verified, the Certificate of Incorporation (COI) has been issued by Ministry of Corporate Affairs (MCA) within 2 to 3 days.
Perpetual Succession
In private limited company, death of the owner won’t affect the continuity of the firm. In other words, you can say that entry or exit of the members or shareholders does not affect the existence of the Company.
Distinct Legal Personality
In private limited company the identity of the company is distinct from its members. It is considered as the most favorable advantages of the company. However, whenever there is some misconduct the concept of lifting or piercing of the corporate veil applies.
Maintains Secrecy
The Private Limited Company is not bound to disclose or publish its accounts, balance sheets and several documents as compared to Public Company.
Transparency
The private limited company enjoys enhanced transparency, and they can win the trust of the General Public.
DOCUMENTS REQUIRED TO REGISTER PVT LTD FIRM IN INDIA
Documents required from directors/shareholders.
- Passport Size Photographs
It should be a recent photo in colour.
- Self-Attested copy of PAN Card
PAN (Permanent Account Number) is the mandatory document to register a Private Limited Company and the details should normally match the information’s given in the other documents for example: Driving license, Aadhaar Card and Passport etc.
- Self-attested copy of Identity Proof
You are required to submit a self-attested copy passport/Voter ID/Driving license as a proof of your identity. Aadhar Card is not accepted by MCA as ID Proof, but you can give your Aadhar Card as an additional KYC document.
- Self-attested copy of Current Address Proof
After identity proof, you need to submit a self-attested copy of anyone of the following:
Mobile Bill/ Telephone Bill/ Electricity Bill/ Bank Statement
- Note that it must include complete name and address of the stakeholder.
- These bills should not be older than two months.
Documents required in respect to Registered Office
- Electricity Bill/Gas Bill/ Mobile Bill/Telephone Bill
The Utility Bill should have the complete address of the registered office and it must not be older than 2 months from the date of submission to MCA.
- No Objection Certificate (NOC)
No objection certificate (NOC) must be issued by the person whose name is mentioned in the utility bill. Even if the company is on your own property, NOC is mandatory because here both company and owner share separate legal identities.
- Rental Agreement/ Lease Deed
Authorization from landlord is required if the property is on rent or lease to use the premises as the registered office for the company. This authorization is done by executing the Rental Agreement/ Lease Deed in the name of the company.
Want to Register a Private Limited Company?
We at Compliance Calendar LLP has the dedicated team of professionals who can guide you throughout the Company Registration Process. If you have any doubt, feel free to get in touch with us at info@ccoffice.in or call us at 9988424211.