Start your new
Private Limited Co
Start your Company within 2 weeks₹ 10000/- (Except Govt. Fees) (DISCOUNT CODE APPLIED: GET50OFF) ₹ 5000/- Only Government fees and stamp duties Additional vary from state to state.
So why pay more? As a Sikkim state, it has the lowest charges while the Punjab state has the highest charges.
Purchase Plan
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See how it works?
- Talk to our Experts
- Purchase Plan
- Work on your Plan
- Its all Done
About this Plan
Who should buy this package?
- Businesses looking to scale their operations
- Startups looking to Raise Capital
- Businesses who wish to have a corporate identity
What services offered under this package?
- Brainstorm business ideas
- Application for DSC class 3 (2 no.)
- Reservation of the company name
- Registration of the company
- Drafting article of association
- Drafting memorandum of association
- Filing declaration by subscriber/first director
- Assistance in the opening bank account
- Registration of PAN and TAN
- Receipt of Incorporation Certificate
- Receipt of Share Certificate
What details and documents are required?
- Photo of directors/shareholders
- PAN & Aadhaar of directors/shareholders
- Basic details of directors/shareholders
- Voter ID, Driving License, Passport (Any 1)
- Bank Statement, Light Bill, Phone Bill (Any 1)
- The electricity bill for the registered address
- Rent Agreement/No Objection Certificate (Any 1)
- Director consent form DIR 2 (Format will be provided)
- Letter of authorization for other registrations
- Specimen signature form for PF
- Bank name for opening the current account
"If you find that this plan is not for you, I can customize a plan for you."
Feel free to contact me and let me know your concern. PapelWork will charge you according to your requirements.
You can also drop me a Whatsapp message. I hope this helps. 🙂
Start your Pvt Ltd and flaunt it to the world! #startupindia
Frequently Asked Questions
I intend to raise funds from investors. Do I get the advantage of registering PLC over other business structures?
Yes, It is advantageous because the capital structure of a Private Limited Company (PLC) can easily consider the financing of equity funding. So, VCs or other investors prefer PLC over any different business structure.
What will be the expected time duration to registered a Private Limited Company?
The Indian government simplifies the process of registration by introducing the SPICe plus mechanism under the Startup initiative. Papelwork will apply through SPICe Plus, the fastest registration process, and incorporate your company within seven working days.
Do I need to have a commercial office to start a business?
No, a commercial office is not required. You can also start your company from your home address as the company's registered address. The company can change the registered address at any time after the incorporation. Once you find a scale in your business and have a larger office, you can change it by applying to the Registrar.
Do we have to deposit equity in a bank at the time of incorporation?
After the company is registered, it must open a company bank account and then deposit the capital into the bank account within 180 days after its incorporation.
What is DIN, and why DIN?
A Director identification number is a unique identification number given to an existing or potential director of an incorporated company. DIN helps to fix the director's identity and relates his participation in other companies, past and present.
Why do you need a DSC?
It authenticates your identity electronically. It provides a high level of security and ensures absolute privacy for your online transaction.
Is DIN individual specific or Company Specific?
DIN is mandatory for all directors. It is Individual specific and not Company-specific, so only One DIN is required for one person, regardless of how many companies it manages.
Information Guide
What is a Private Limited Company?
Private Limited Company (PLC) is an incorporated business set up as a legal entity in its rights and exists separately from its owners. Private Limited Companies are typically small to medium-sized companies.The shareholder or stakeholder is the Company's owner as they own a part of a company's share. The shareholder privately holds the Company's equity shares, and equity shares cannot sell on the Stock Market. Private Limited Company includes Banking, Commerce & Finance, Corporate, Commercial, General Law and Entrepreneurship, Management, and Leadership subjects. Let us look for some more details below.
What are the Characteristics of Private Limited Company?
Separate Legal Entity
A company is a separate legal entity from its members, so it is separated legally from its shareholders, directors, promoters, etc. It has rights and is subject to specific duties and obligations.
Perpetual Succession
Unlike a natural person, a company never dies. It is an entity with perpetual succession. Even the death, insolvency, mental disorder or retirement of a member have no impact on the Company's existence. It is created and be put to an end only by the process of law. The Company continues to exist even if all its members are dead.
Limited Liability
Limited liability relates to the shielding of the business owner from the liabilities of the Company. This liability can be in the form of a loan, mortgage debt, or any other type. Traditionally, only companies had such limited liability for their owners, and a phenomenon often referred to as "the corporate veil." This limited liability enables a company to go bankrupt without individual owners being responsible for the business debt.
Capacity to sue & can be sued by others
A Company can institute legal proceedings against a person or bring a suit in the Court of Law since it has separate legal existence in the law's eyes. Also, the Court of law can institute all the legal proceedings against the Company in the name of the Company separately.
Owning a Property
Since Company is an artificial person having a separate legal existence, it can own, acquire, enjoy and alienate property in its name. The shareholders are not entitled to make any claim upon the property in the Company's name as long as it is a Going Concern, as the Company is the actual owner of the same.
Transferability of Shares
The shares of a PLC are not freely transferable like in a Public Company. That's why these shares are not listing on the stock market.
Common Seal
The law has provided for the use of a common seal bearing the name of the Company for signing the documents in the name of the Company. Any document bearing the common seal of the Company shall be legally binding on the Company. A company may have its Articles' regulations concerning affixing the common seal to a document, else the Provisions of Table A shall apply.
Delegation of Management
The shareholders delegate the actual control to their elected representatives, known as directors who look after the Company's day-to-day working. Thus, the management delegation can help a company reap long-term and short-term decision-making benefits and enable more focused direction.
Members/Shareholders
To start a company, a minimum of two members required and a maximum of 200 members as per the Companies Act, 2013.
Number of Directors
A private company needs to have a minimum of 2 directors.
What are Advantages & Disadvantages of Private Limited Company?
| ADVANTAGES OF PRIVATE LIMITED COMPANY | DISADVANTAGES OF PRIVATE LIMITED COMPANY |
|---|---|
| The Company enjoys a separate legal status distinct from its members. | Audited Annual Accounts are available for Public Inspection, leading to loss of Confidentiality. |
| Funds can raise quickly by selling the shares. | It involves higher legal costs and is a Cumbersome process. |
| The Company continues to exist even if all the members die. | Consent of all the shareholders needs to be taken for making any decision due to division of control |
| The liability of members is limited only to the extent of face value of shares taken by them | The access to Capital Markets is restricted as the equity shares cannot be traded on the Stock Exchange. |
| Enables more focused management in achieving its goals due to delegation of management. | The number of members in the case of a Private Limited Company is limited only to 50 members. |
What are types of Private Limited Company?
Limited by Shares
The shareholder's liability for a Private Limited Company limited by shares is restricted to the paid-up share capital or any amount that remains unpaid. The shareholder cannot be held liable or asked to pay more than his/her share capital invested in the Company.
Limited by Guarantee
limited by guarantee, the member's liability is limited to the amount of liability undertaken by each member in the MoA. Therefore, the members cannot hold liable for an amount higher than the amount of guarantee undertaken by the member in the MoA. The guarantee of the members can be called for only in the Company's winding-up. This type is suitable for clubs, trade associations, societies, and entities requiring significantly less capital.
Unlimited Liability
Unlimited Companies are those types of Company that do not limit the liability of their members. The liability of the members extends to the whole amount of the Company's debts and liabilities. Therefore, an unlimited company's creditors can enforce the Company's debt and liability on the members if Company is closed. Despite not having limited liability protection, it is still considered a separate legal entity. Therefore, the members cannot be sued individually.
SWOT Analysis of Private Limited Company?
| STRENGTH | WEAKNESS |
|---|---|
| Easier to borrow money | Maximum 50 Shareholders allowed |
| Owners have limited liability | Lack of Transferability of Shares |
| Business exists separate from their owners | No Valuation of Investments |
| Trustful Shareholders | No Access to Capital Markets |
| Fewer Government interventions | More Compliances |
| OPPORTUNITIES | THREATS |
| Continuity of Existence | Division of Control |
| Minimum 2 Shareholders Required | Loss of Confidentiality |
| Company can raise more Capital | |
| Scope of Expansion | |
| Preferred by Investors |
What are the basics to Incorporating a Private Limited Company?
- A minimum of 2 Directors shall be required to be appointed, out of which one must be a resident of India.
- Minimum 2 Shareholders are needed, although the directors can be the shareholders.
- The registered office of the Company shall be a Place of Business in India.
- As authorized capital, minimum capital of 1 lakh is required.
- Although each shareholder must subscribe to at least one share for registration to ensure a reasonable amount to run the business.
Can I convert my existing business into Pvt Ltd Company?
Yes, Any business structure like Sole Proprietorship, Partnership Firm, Limited Liability Partnership, etc. can be easily converted into a Private Limited Company.How much time is required to register a Private Limited Company?
The complete process of registration takes seven working days. However, nowadays, registering a Company has become a fast process as all documents are dragged in a single application form with MCA. It is a big step towards e-governance and for businesses who are looking for expansion of operations.What is the process of Incorporation of a Private Limited Company?
- Aligning all the Basic documents as listed above
- Review and Examination of all the above documents and information
- Procurement of Digital Signature Certificate
- Checking the availability of the proposed name of the Company
- Drafting the Articles and Memorandum of Association of the Company
- Filing application for Registering the Company under SPICe Plus Mechanism
- Application for allotment of TAN and PAN of the Company
- After that, the Government and the Ministry shall take their own Processing time.
- Dispatch of Incorporation Kit to your address
What are Post Registrations required after Incorporation of Private Limited Company?
- PAN / TAN Registration
- Shop & Establishment License or Ghumasta License or Gram Panchayat NoC (whichever is applicable)
- Profession Tax Enrollment Certificate for Company and 2 Directors(For Maharashtra State)
- Profession Tax Registration Certificate (For Maharashtra State)
- FSSAI Basic Registration / License (If applicable)
- Import Export License (If applicable)
- GST Registration (If applicable)
- UDYAM / MSME Registration (If applicable)
What is Post Incorporation Compliance required for a Private Limited Company?
Registered companies in India are required to maintain the list of compliance under various regulations. Failure to maintain compliance can lead to penalties or disqualification of the directors. Let us know more.Appointment of Statutory Auditor
The Board of Directors must appoint a practicing Chartered Accountant within 30 days of incorporation in the Form ADT1.
Commencement of Business
Within 180 days of incorporation, the Company must deposit the capital mentioned in the MOA [Memorandum of Association] in a bank. The Company must obtain the commencement certificate from MCA by filing to RoC.
Income Tax e-Filing
Companies registered in India must file an income tax return each year in Form ITR-6 and Form 29B.
Annual Return
Companies registered in India must file MCA annual return each year in Form AOC-4 and MGT-7.
DIN KYC
Director must complete the DIN KYC procedure each year for the directors of the company.
ACTIVE Form
The Company must complete the ACTIVE Form procedure each year for the Company.
Deposit Disclosure
The Company must file the DPT3 Form by attaching a certificate of Loans taken in the financial year.