Private Limited Company (Pvt Ltd)
A private limited company is a privately held business entity, owned by a group of individuals. The liability of the members in a Pvt ltd company is limited to the number of shares held by them and restricts the ability to transfer their shares. This kind of company is required to have a minimum of 2 members and a maximum of 200 members. They are required to comply with various regulatory requirements including filing annual returns and financial statements with appropriate authority.
This structure is commonly used by small and medium-sized entities that want to limit their liability while maintaining control over the ownership and operations of the company.
Benefits
1. Separate legal entity- Pvt Ltd are separate legal entities from their owners, which allows them to own assets, enter into contracts, and incur obligation under their own name.
2. Credibility and professionalism – A limited company or private company gives you an edge when it comes to credibility and professionalism. Limited companies that are registered are deemed to have a more prestigious business status, which can help you get off on the right foot. Clients, suppliers, and investors often perceive limited companies as more stable and reliable compared to sole proprietorships or partnerships. This increased trust can open doors to better business opportunities, easier access to credit, and more favorable terms with suppliers.
3. Tax advantage- when you establish a limited company, you are tapping into some significant tax benefits. Instead of facing income tax rates ranging from 20% to 45% as sole traders do, a limited company typically only deals with maximum of 25% Corporation Tax on its profits.
Registration process
Step 1 : Acquire a Digital Signature Certificate (DSC)
Every director and shareholder must secure a Digital Signature Certificate(DSC) issued by the Controller of Certification Agencies (CCA). This involves providing essential details such as passport-sized photos, PAN, Aadhar Card, phone number, and email address. Foreign nationals should also furnish notarized and apostilled documents if applicable.
Step 2: Director Identification Number (DIN)
Obtain a Director Identification Number (DIN) if you intend to be a director in the company. DIN
is essential for directors and needs to be provided in the registration form.
Step 3: Name Reservation for the company (SPICe+ Part A)
Begin by completing the SPICe+ Part A form to secure a unique company name. this entails selecting the company type, class, category, and sub-category, specifying the primary division of industrial activity, and offering a comprehensive business description. You need to propose two names for the approval.
Step 4 : Submission of Company Details (SPICe+ Part B)
Provide comprehensive information concerning capital, registered office address, subscribers and directors’ details, stamp duty, PAN and TAN application, and necessary attachments.
Step 5: Preparation and Submission of Incorporation forms ( SPICe+ MOA And AOA)
Draft the Memorandum of Association (MOA) and Articles of Association (AOA) containing crucial details. Obtain digital signatures from subscribers and professionals before submitting this document to the MCA for approval.
Document Checklist:
- For Indian Nationals: Self-attested PAN Card copy, passport-size photos. Aadhar CARD, proof of identity, and address proof.
- For Foreign Nationals: Nationalized document
- Passport-sized photo, passport, and address proof.
- Registered Office Documents: Proof of business address, copy of rent agreement (if applicable), and owner’s no objection certificate.
Why Choose YKG Global for Private Limited Company registration?
- Expert Consultation: Our team of experienced professionals offers personalized consultation that guides you properly to make the right decisions for your business.
- Competitive Pricing: We ensure that our pricing is transparent, with no hidden charges, so that you receive true value for money.
- Fast and Smooth Process: Our seamless processes ensure that your Private limited company gets registered within the time limit.
