Checklist for Private Limited Company Registration

Private Limited Company is a company which is privately held to carry out business. Shares of a Private Limited company cannot be publically traded. The liability of the members of a Private Limited Company is limited to the number of shares held by them. Private Limited Company registration is governed by the ministry of corporate affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. 

In this blog, we will discuss about the necessary things required for Private Limited Company registration. In this blog, we will cover the following topics of Private Limited Company registration.

1) Benefits of Private Limited Company registration

2) Requirements for Private Limited Company registration

3) The process of Private Limited Company registration

4) Documents required for Private Limited Company registration

Let's explore the idea and knowledge of Private Limited Company registration.

Benefits of Private Limited Company registration

If you are planning to register a Private Limited company then you are entitled to avail certain benefits. List of the benefits of Private Limited Company registration is given below: 

1) Separate Legal Entity - A registered private limited company is a legal entity. A private limited company has a wide range of legal capacity like owing property and incurring debts. 

2) Uninterrupted Existence - A registered private limited company has perpetual succession meaning uninterrupted existence until it is legally dissolved. A registered private limited company is unaffected by the death of any member and continues to be in existence of irrespective of the changes in ownership. 

3) Easy Transferability - Ownership of a business can be easily transferred in a registered private limited company by transferring its shares. 

4) Owning Property - A registered private limited company can acquire, own, enjoy and alienate property in its name. No shareholder can claim upon the property of the company. 

5) Limited Liability - Unlike proprietorships and partnerships, in a registered private limited company the liability of shareholders in respect of the company's debts is limited to the equity invested by them in the company. 

Requirements for Private Limited Company registration

For registration of a private limited company, certain requirements need to be fulfilled. The requirements for Private limited company registration are listed below.

1) 2 Directors - To register a Private Limited Company, a minimum number of two adult persons are required to act as Directors of the company. A private limited company must have a minimum of 2 directors and maximum 15 directors. One of the directors has to be an Indian Citizen and Indian Resident.

2) 2 shareholders - To register a Private Limited Company, a minimum number of two persons are required to act as a shareholder of the company. The shareholders can be natural persons or an artificial legal entity.

Process of Private Limited Company registration

Process of Private Limited Company registrationTo register a private limited company one has to fulfill the process as prescribed. The details about the process for Private Limited Company registration is given below: 

1) Run Form- In first step name approval requires to be obtained for the proposed company names. Names should be obtained from the Ministry of Corporate Affairs (MCA). 2 names can be provided and in case of rejection of both names, an opportunity will provide to the applicant for resubmission of the form. The name must be a unique one and it has to be accepted by the Ministry of Corporate Affairs. Name approval can be obtained in 1-2 working days.

2) Digital Signature Certificate - Digital Signature Certificate is an instrument issued by the certifying authorities by which the directors can sign electronic documents. Digital Signature must be obtained for the Directors of the company. Digital Signature is required for the signing of the incorporation application.

3) Submission of Registration application - After obtaining the Digital Signature Certificate, registration application requires to be submitted in SPICe Form with the Ministry of Corporate Affairs. 

4) Registration Certificate - Once the application form is uploaded on MCA portal along with the necessary documents and the same requires to be verified by the concerned officer. After proper verification, Registrar of Companies issue registration certificate via email to the directors of the company. 

Conclusion

Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private Limited Company registration is governed by the ministry of corporate affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014.Enterslice is one of the best company in providing service relating to registration of Private limited company. If you have any query while making registration of Private limited company, then without any hesitation contact Enterslice and it's the team to get best and affordable service. Click here to know more about this.