How to Register a Private Limited Company in India: A Complete Guide

More often than not, we find that companies attach a “Private Limited” prefix to their name. This signifies that the company is registered under the Companies Act of 2013 and is listed in the Registrar of Companies (ROC).

In the 2023 - 24 financial period, over 185,000 companies were registered.

This provides the company a legal recognition that sets it up for future growth and business expansion. For companies that aim to make their mark on the business landscape, having a Private Limited Company Registration is essential.

Why Opt for a Registration for Your Private Limited Company?

By getting your company registered as a Private Limited Company, you enjoy limited liability among the various shareholders. Further, your company is identified as a separate legal entity. This helps establish market credibility, provides access to funding, and protects the brand.

Further, if in the event of the shareholders or directors retiring or an unexpected vacancy in ownership positions, being a private limited company provides the organization with perpetual existence.

Some prerequisites for getting your company registered

When applying online for any registration, companies need to tick several items on a checklist to ensure that they are eligible.

Private Limited Company Registration Process

When opting for a Private Limited Company Registration Process, companies to need have the below basic things:

• 2 minimum directors on their board (at least one residing in India)
• 2 minimum shareholders
• Consent form signed by the above
• DIN and DSC - these are issued by the Ministry of Corporate Affairs
• Identity and residence proof for the directors and shareholders
• A unique name for the company
• The address of the registered office
• MOA (Memorandum of Association)
• AOA (Articles of Association)

Submit these with the Registrar of Companies (ROC).

GST Registration Process

If your annual turnover is 40 lakhs INR or more (manufacturing), 20 lakhs INR (service), and 10 lakhs INR (special states), it is mandatory to apply for a GST registration.

Further, the below are eligible to register for GST:

• Resident and non-resident casual taxable persons
• People involved in inter-state taxable supplies
• E-commerce operators and those who sell on e-commerce platforms
• Businesses registered under VAT, Service Tax, and others
• Aggregator companies
• Service Providers who operate in India

Steps to follow for Company Registration

Registering a company involves filing an application with the Registrar of Companies under the Companies Act 2013.

Private Limited Company Registration Process

To apply for a Private Limited Company Registration, companies need to do the below:

• Obtain a Director Identification Number (DIN) issued under the Companies Act by the MCA
• Get a Digital Signature Certificate (DSC) for signing documents electronically as an entity
• Reserve a unique name to represent their brand using the MCA Portal
• Draft the MOA and AOA and get these signed by the Directors and Shareholders
• File for incorporation (submit the MOA and AOA) with the Registrar of Companies (ROC)

Once these have been verified to the satisfaction of the ROC, a Certificate of Incorporation is issued. This carries the Corporate Identification Number (CIN), unique for each company. Though the process for Private Limited Company Registration takes between 7 -15 working days, it is dependent on the speed of document verification.

It is to be noted that the AOA needs to outline the following:

• The company’s name and business
• Its purpose and objectives
• Capital structure of the company
• Corporate governance that it follows
• The corporate records and how they are maintained

GST Registration Process

For GST registration, do the below:

• Visit the registration portal
• Select the State and District your business belongs to
• Enter your business name and the PAN details
• Provide a valid email and phone number for the business (linked to the PAN)
• You will receive a Temporary Reference Number (TRN)
• Using the TRN, provide the photographs, proof of location, bank details, and Aadhar authentication
• Fill in the details pertaining to your business
• On successful submission, an Application Reference Number(ARN) is sent to your number an email.

You can track your application for GST Registration using the ARN. While you can tackle the process on your own, using a facilitator will help you save time and address any issues that come up.

Compliance Requirements Private Limited Company Registration

When a company is registered as a Private Limited Company, they are subject to the following statutory requirements:

• At least one director must be a permanent resident of India, having spent 182 days of the last year in the country.
• File an Annual Return under Section 92 and 137 of the Companies Act 2013.
• Maintain Statutory Registers under Section 118.
• Maintain compliance with tax laws.

To add, the companies that have GST registration need to do the following:

• File accurate GST forms and returns
• Ensure timely submission

Benefits of Getting Your Company Registered

Getting a Private Limited Company Registration can benefit your company in the following ways:

• Turn it into a legal entity and allow legal protection
• Help ensure perpetual succession in the event of retirement or death
• Allow the shareholders to transfer shares with ease
• Boost customer trust in the company
• Allows the company to issue equity shares and makes it easier to raise funds

Further, with GST registration, businesses have the below benefits:

• Establish a smooth process for the transaction of goods and services across borders
• Eliminate the cascading effect that taxes have on a business
• Enjoy a simple process for tax filing and services

Hence, it is essential for companies that are looking to get a foothold in the business sphere, to opt for Private Limited Company Registration as well as a GST registration.

To Conclude

Opting for a Private Limited Company Registration opens your brand up to receive market recognition. This in turn improves the customer’s faith. Get a GST registration and Private Limited Company Registration and establish your company as a reliable name in the market.