Private Limited Company in India

Private Limited Company is one of the most popular legal entity in India. if we talk about the growing startups from flipkart to ola cabs or any other growing internet startup which raise Millions to Billions from VC or Investor, they all are the private limited Companies. its is one of the most old legal entity in India.

Requirements - Its required minimum 2 Directors and 2 Shareholders. Directors and Shareholder can be the same so in the simple words its required min 2 person. sometime startup have a single founder in that case you can include your any family member as a director in the Company.

Procedure to Register a Private Limited Company -

1. You have to Prepare the DSC, its a simply Digital signature of the directors which is needed for the singing purpose but don’t worry it can’t be mis us easily because its only for the govt filings purpose.
2. You have to Prepare the DIN Number.its a simple unique code which is required to become Director in any Company
3. After that you can go with the INC29 Filinsg where you have to provide the 4–6 names of the Company which is unique and not registered previously as pvt ltd company or llp.
4. through the inc 29 filings in one shot your company has been approved or you can go with the traditional method where you have to approved the name of the Company
5. After that prepare the MOA & AOA of Company and Filings of the Forms
6. at the end COI ( Certification of Incorporation ) has been issued and apply for the PAN & TAN.

Documents Required -

• Directors ID & Address Proof like PAN CARD, Voter id or adhar card or driving license or passport + any utility bill copy like elect bill or phone bill etc.
• Registered office address proof like any utility bill copy with the NOC or rent agreement etc. its can be a residential place also.

Advantages -

• Trustworthy legal entity among the customer as Proper Company
• Raise the funds from Angel Investor or Venture capital firms. Read here more about the venture capital firms
• Provide Shares to employees and Investor.

Disadvantages -

• High Setup Costing as compare to other legal entity
• High Annual Maintenance Cost as compare to other legal entity

Costing -

• Its Cost generally nearby 13000 to 16000 normally or you can find more than 20000 also from traditional professionals.
• in the Punjab, Kerala or MP Stamp duty is very higher so its cost more than 16000.