Private Limited Company

Embark on your business journey in India by opting for the streamlined process of registering a private limited company with Speed Filings. Our cost-effective services ensure hassle-free compliance with Ministry of Corporate Affairs (MCA) regulations, making the entire registration process a seamless experience.

Understanding a Private Limited Company

In the Indian business landscape, a private limited company stands out as a preferred choice due to its advantages in terms of limited liability and clear distinctions between directors and shareholders. At Speed Filings, we specialize in simplifying the registration of private limited companies, offering an array of benefits to entrepreneurs.

Key Features of a Private Limited Company

1. Limited Liability Protection:

Shareholders are liable only up to their shareholding, safeguarding personal assets even in challenging financial situations.

2. Separate Legal Entity:

Possesses a distinct legal identity, enabling independent actions, contracts, and legal proceedings under its unique name.

3. Minimum Shareholders and Directors:

Requires a minimum of two shareholders and directors, with at least one director being an Indian citizen.

4. Minimum Authorized Capital:

Must maintain a minimum paid-up capital of Rs. 1 lakh or a higher amount as specified.

5. Name Conventions:

The company’s name must conclude with the words “Private Limited.”

6. Restrictions on Share Transfer:

Transferring shares within the company is restricted and requires approval from the Board of Directors.

7. Compliance Requirements:

Adherence to legal and regulatory obligations, including financial record maintenance, annual general meetings, and annual returns filing.

Types of Private Limited Companies

Company Limited by Shares:

• Shareholders’ liability is limited to the nominal share amount mentioned in the Memorandum of Association.

Company Limited by Guarantee:

• Member liability is limited to the amount of guarantee specified in the Memorandum of Association.

Unlimited Companies:

• Members have unlimited personal liability for the company’s debts and liabilities, despite being a separate legal entity.

Advantages of a Private Limited Company

1. Limited Liability:

Shareholders’ personal assets are shielded from the company’s financial obligations.

2. Distinct Legal Identity:

Independent legal identity enables ownership of assets and engagement in contractual agreements.

3. Continuous Existence:

The company persists despite changes in shareholders or directors, independent of their lifespan.

4. Ease of Funding:

Facilitates raising capital by issuing shares, attracting external investment.

5. Tax Benefits:

Qualifies for various tax benefits and exemptions, ensuring tax efficiency.

6. Credibility and Trust:

The inclusion of “Pvt. Ltd.” in the company name instills confidence in stakeholders.

Disadvantages of a Private Limited Company

1. Compliance Burden:

Regulatory demands, including financial reporting, filings, and audits.

2. Complex Setup:

Higher process and cost compared to more superficial business structures.

3. Share Limits:

Restricted share transfers, with a maximum of 200 shareholders in India.

4. Public Disclosure:

Financial information is publicly viewable, impacting privacy.

5. Exit Complexity:

Selling or leaving involves more complications than other business structures.

6. Slower Decisions:

The involvement of shareholders and directors may slow decision-making.

Requirements for Registering a Private Limited Company in India

1. Directors and Members:

A minimum of two directors and 200 members, with at least one director having Indian residency.

2. Company Name:

Selection of a name reflecting the principal business activity.

3. Address of the Registered Office:

Permanent address submission after the registration process for maintaining relevant company documentation.

Private Limited Company Registration Process

Acquire a Digital Signature Certificate (DSC):

• Every director and shareholder must secure a DSC for government filings.

Director Identification Number (DIN):

• Directors must obtain a DIN issued by the Ministry of Corporate Affairs (MCA).

Name Reservation for the Company (SPICe+ Part A):

• Complete the SPICe+ Part A form to secure a unique company name.

Submission of Company Details (SPICe+ Part B):

• Provide comprehensive information concerning capital, registered office address, and other details.

Preparation and Submission of Incorporation Forms (SPICe+ MOA and AOA):

• Draft MOA and AOA containing crucial company details and submit them for approval.

Certificate of Incorporation:

• Upon document verification, the MCA issues the Certificate of Incorporation with the Company Identification Number (CIN), PAN, and TAN.

Document Checklist for Registration

For Indian Nationals:

• Self-attested PAN card copy
• Passport-sized photo
• Aadhaar Card
• Proof of identity and address

For Foreign Nationals:

• Notarized documents
• Passport-sized photo
• Passport
• Address proof

Registered Office Documents:

• Proof of business address
• Copy of the rent agreement (if applicable)
• Owner’s no objection certificate

Post-Registration Compliance

Following incorporation, adherence to post-registration company compliances is essential for streamlined operations.

Register Your Company through Speed Filings

Speed Filings specializes in private limited company registration services in India. Our team of professionals offers expert consultation tailored to your specific requirements and business goals. Trust us to simplify the process, allowing you to focus on your business objectives while we address the legal requirements. Choose Speed Filings as your partner in registering your private limited company with confidence.