HOW DO I REGISTER A NEW PRIVATE LIMITED COMPANY?

To register a new private limited company, you can seek assistance from Auriga Accounting Private Limited, a professional firm specializing in company registration services. They will guide you through the entire process, starting with selecting a suitable and unique company name that aligns with regulatory requirements. Auriga Accounting will handle the online application submission to the relevant government authority, including necessary details like directors’ information and the registered office address. They’ll also assist in drafting the memorandum and articles of association, ensuring compliance with legal standards. With Auriga’s expertise, you’ll smoothly navigate the registration process, from paying the required fees to obtaining the certificate of incorporation and fulfilling other regulatory obligations, ensuring a seamless establishment of your private limited company.

What is a private limited company?

In India, a private limited company is a privately held entity with limited liability, and it ranks among the nation’s most favored business structures. This popularity is primarily attributed to its numerous advantages, including limited liability protection, ease of formation and maintenance, and its status as a distinct legal entity. A private limited company enjoys legal separation from its owners and necessitates a minimum of two members and two directors for its operation.

Here are the key characteristics of a private limited company in India:

1. Limited Liability Protection: Shareholders of a private limited company are liable only to the extent of their shareholding. Their assets remain safeguarded, even in cases of financial setbacks incurred by the company.

2. Separate Legal Entity: A private company possesses its own distinct legal identity. It can own property, engage in contracts, and initiate or defend legal actions under its unique name.

3. Minimum Number of Shareholders: A private company must have a minimum of two shareholders and cannot exceed 200 shareholders.

4. Minimum Number of Directors: A private limited company necessitates a minimum of two directors. At least one of these directors must be an Indian citizen.

5. Minimum Share Capital: The company must maintain a minimum paid-up capital of Rs. 1 lakh or a higher amount as specified.

6. Name of the Firm: The private limited company’s name must conclude with the words “Private Limited.”

7. Restrictions on Share Transfer: The right to transfer shares within a private limited company is restricted. Shares can only be transferred with the approval of the Board of Directors or following the company’s Articles of Association.

8. Prohibition on Public Invitation: Private limited companies are prohibited from inviting the public to subscribe to their shares or debentures.

9. Compliance Requirements: Private limited companies are obligated to adhere to various legal and regulatory obligations, including maintaining proper financial records, conducting annual general meetings, and filing annual returns with the ROC.

Types of Private Limited Companies?

In a Company Limited by Shares, shareholders’ liability is restricted to the nominal share value stated in the Memorandum of Association. For a Company Limited by Guarantee, member liability is confined to the guaranteed amount specified in the Memorandum of Association, invoked solely during winding-up procedures. Conversely, in Unlimited Companies, members bear unlimited personal liability for the company’s obligations. Despite this, they maintain a distinct legal identity, shielding individual members from being personally sued.

Company Registration Process?

Step 1: Obtain a Digital Signature Certificate (DSC) Each director and shareholder should acquire a Digital Signature Certificate (DSC) from the Controller of Certification Agencies (CCA). This involves furnishing necessary information such as passport-sized photos, PAN, Aadhaar Card details, phone number, and email address. Foreign nationals must also provide notarized and apostilled documents if applicable.

Step 2: Apply for a Director Identification Number (DIN) If intending to serve as a director, obtain a Director Identification Number (DIN), a crucial requirement for directors, which must be included in the registration form.

Step 3: Reserve Company Name (SPICe+ Part A) Complete the SPICe+ Part A form to reserve a distinct company name. This involves specifying the company type, class, category, and sub-category, as well as indicating the primary industrial activity and providing a detailed business description. Propose two names for approval.

Step 4: Submit Company Details (SPICe+ Part B) Furnish comprehensive details including capital, registered office address, subscriber and directors’ particulars, stamp duty, PAN and TAN application, and required attachments. Ensure compliance with the Companies Act 2013 and obtain digital signatures from professionals assisting in the process.

Step 5: Prepare and File Incorporation Forms (SPICe+ MOA and AOA) Draft the Memorandum of Association (MOA) and Articles of Association (AOA) containing essential company information. Obtain digital signatures from subscribers and professionals before submitting these documents to the Ministry of Corporate Affairs (MCA) for approval.

Register Your Company through Auriga Accounting Private Limited.

To register your company through Auriga Accounting Pvt Ltd., you can follow these steps:

1. Contact Auriga Accounting Pvt Ltd. and discuss your company registration requirements.
2. Provide necessary information such as proposed company name, details of directors and shareholders, registered office address, and business activities.
3. Auriga Accounting Pvt Ltd. will assist you in obtaining Digital Signature Certificates (DSCs) for directors and shareholders if required.
4. They will help you acquire Director Identification Numbers (DINs) for directors, if applicable.
5. Auriga Accounting Pvt Ltd. will guide you through the process of name reservation and submission of company details using SPICe+ forms.
6. They will assist in drafting the Memorandum of Association (MOA) and Articles of Association (AOA) and filing incorporation forms with the Ministry of Corporate Affairs (MCA).
7. Auriga Accounting Pvt Ltd. will help you with additional registrations such as GST, EPFO, ESIC, opening a bank account, and obtaining necessary licenses.
8. Finally, after successful verification, Auriga Accounting Pvt Ltd. will facilitate the issuance of the Certificate of Incorporation (COI) for your company.

Document Checklist:

For Indian Nationals: Please provide self-attested copies of your PAN card, passport-sized photo, and Aadhaar Card, along with proof of identity and address.

For Foreign Nationals: Please submit notarized documents, passport-sized photo, passport, and address proof.

Registered Office Documents: Kindly furnish proof of business address, a copy of the rent agreement (if applicable), and an owner’s no-objection certificate.

Advantages of a Private Limited Company

1. Limited Liability: Shareholders’ liability is confined to their capital contribution, shielding personal assets from company debts and obligations.

2. Distinct Legal Identity: Possessing its legal entity separate from its owners enables the company to own assets, enter contracts, and pursue legal actions in its name.

3. Continuous Existence: The company’s lifespan remains unaffected by changes in shareholders or directors, ensuring continuity of operations.

4. Ease of Funding: Issuing shares facilitates capital raising from investors, venture capitalists, or angel investors, fostering external investment.

5. Tax Benefits: Eligibility for various tax incentives and exemptions enhances the company’s tax efficiency.

6. Credibility and Trust: The inclusion of “Pvt. Ltd.” in the company name often enhances credibility and instills trust among stakeholders such as customers, suppliers, and partners.