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PaieOverview of Private Limited (PVT LTD) Company Registration
A Private Limited Company (Pvt Ltd) is a type of business entity that limits the liability of its shareholders to the amount unpaid on their shares. This means that the personal assets of the shareholders are protected from the company’s debts and liabilities. Pvt Ltd companies can be formed by a minimum of 2 shareholders and a maximum of 200 shareholders.
A Private Limited Company is a separate legal entity, which means it has its own legal existence separate from its shareholders.It has its own assets, can enter into contracts, and incur liabilities in its own name.
Benefits of Pvt Limited Company
A Private Limited Company offers several advantages, making it an ideal choice for entrepreneurs and growing businesses. Here’s why businesses opt for this structure:
1. Limited Liability Protection
Shareholders’ personal assets are protected from the company’s debts and liabilities.
2. Separate Legal Entity
The company is a distinct entity apart from its owners, enabling independent operations.
3. Credibility and Trust
A registered private limited company enhances trustworthiness among clients and investors.
4. Easy Transfer of Ownership
Shares can be transferred easily to other members or new investors.
5. Easy Fund Raising
Private limited companies can raise funds through equity, bank loans, and venture capital.
6. Tax Benefits
Companies can avail various tax deductions and exemptions under government policies.
7. Perpetual Succession
The company continues to exist even if shareholders change, ensuring business continuity.
Documents Required for Private Limited Company
To register a Private Limited Company, the following documents are required from the directors and shareholders:
- Identity Proof: Aadhaar card, Passport, Voter ID, etc.
- Address Proof: Utility bill, Rent agreement, Passport, etc.
- Photographs of the Directors: Recent passport-size photos of all directors.
- PAN Card of the Directors: Each director must provide a PAN card for registration.
- Proof of Business Address: Documents like rent agreement or NOC from the landlord.
- Digital Signature Certificate (DSC): Required for online filing and company registration.
- MOA & AOA: Memorandum of Association (MOA) and Articles of Association (AOA) defining the company’s objectives and rules.
Step-by-Step Process for Private Limited Company
1. Obtain Digital Signature Certificate (DSC)
Directors need a DSC for online filing of documents.
2. Apply for Director Identification Number (DIN)
A unique DIN is required for each director of the company.
3. Choose a Unique Company Name
Reserve a unique name through the MCA portal.
4. Draft MOA and AOA
Prepare the Memorandum of Association (MOA) and Articles of Association (AOA).
5. File the Incorporation Application with MCA
Submit SPICe+ Form along with required documents.
6. Certificate of Incorporation
Once approved, the company receives a Certificate of Incorporation.
7. PAN and TAN Registration
Apply for the company’s PAN and TAN for tax compliance.
8. GST Registration (if applicable)
Register for GST if turnover exceeds the threshold limit.
Frequently Asked Questions
What is a Private Limited Company?
Why register a Private Limited Company?
What are the steps for Pvt Ltd Company registration?
What documents are required?
How long does Pvt Ltd Company registration take?
What is the minimum capital requirement?
How many directors are required?
Can a foreign national be a director or shareholder?
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