Benefits of Private Limited Company Registration – An Overview

Before discussing the benefits of Private Limited Company registration, let’s first discuss what the company registration is? If you have decided to start a company/business, then the first and the essential requirement is to determine the excellent business structure to register the business in India. The company's registration makes a company trustworthy and increases the authenticity of your business.

In Mar 2020, a recent update has been introduced in which the Company Registration should be done on a new MCA portal. It means a Public, Private, and One Person company registration will be done on the new MCA portal. One of the famous legal business structure in India is a Private Limited Company Registration. If anyone wants to start their company, make sure you get Online Company Registration from the experts. In this article, we will discuss the process of company registration and the benefits of a Private Limited Company Registration in India.

What are the Benefits of Private Limited Company Registration in India?

• After the successful completion of the company's registration, you can avail of all the benefits of company registration, as mentioned below.
• Tax benefits are available.
• Separate legal entity: In which the company is separated from the owner of the company, and it will come under the Operation of Law. It doesn’t matter who will be the next future owner, but the company will run forever.
• Loans can be quickly issued on the name of the registered company, and it will be beneficial for the company to make investments in different companies.
• A Registered company can sue or be sued on its own name.
• In a corporate environment, it becomes easy to distinguish from others.

Eligibility Criteria for registering a Private Limited Company in India

To register as a Pvt Ltd company in India it requires a minimum of two Directors/Shareholders.

• Unique Name: The name of the company should be unique, and it must not be similar to any other existing company.
• Indian Resident: At least one of the company's directors needs to be an Indian resident.
• Registered Office: You should have a registered office; it can be a rented home also.

Documents required for Private Limited Company Registration

Without the proper documents, the registration of the company cannot be done, and you can’t avail of the benefits of Private Limited Company registration. Check the lists of documents that are accepted by the Ministry of Corporate Affairs, which are mentioned below.

• Copy of PAN Card or Passport of directors (if the director is NRI or Foreign National).
• 2 passport size photo of the director of the company.
• Aadhar card or voter Id of directors.
• Rent agreement or property papers for address proof.
• Electricity or water bill of company place.
• NOC from the owner of the property.

The online process for Company Registration

Follow these steps to obtain a Private Limited Company in India.

Step: 1 Now Directly Reserve Name through Incorporation Form

Now, the name can be applied directly through incorporation Form SPICe.

Step: 2 DSC (Digital Signature Certificate)

For Company formation, digital signatures are required because the company registration process is online, and the form requires a digital signature. Digital Signature is compulsory for all the applicants whose name is mentioned in MOA and AOA.

Step: 3 MOA (Memorandum of Association) and AOA (Article of Association)

MOA and AOA are vital documents for a Private Limited Company Registration. MOA defines the scope and vision of the company, whereas AOA represents the rules and regulations of the company.

Step: 4 Application for Company Incorporation

In this step, you can apply PAN and TAN for the company, and it can be done through the single SPICe form.

Step 5:Certificate of Incorporation

After the verification of all the documents, the registrar will issue the certificate of incorporation for the Private Limited Company.

Conclusion

It is clear that the company registration in India helps in promoting the startups and also gives an extra advantage over others who have not registered their company. So, it is really important to get your company registered online to avail of all the benefits of private limited company registration.