Pvt Ltd Company Registration Fees in India

What is a Private Limited Company?

A Private Limited Company (PLC) is a prevalent form of legal entity in India. The Companies Act 2013 regulates Private Limited Companies and mandates a minimum of 2 Shareholders and 2 Directors, with one of the Directors being an Indian Resident and Indian Citizen.

A Private limited company is a kind of business entity that a small group of people privately and collectively owns. It is registered under the MCA (Ministry of Corporate Affairs). This kind of business entity provides limited liability for its shareholders, and shares can be exchanged privately. It can have a minimum of 2 members and a maximum of 200 members. Shareholders are regarded as the owners of the company, whereas directors are regarded as the key managerial persons (KMP) of the company, while in an LLP, partners are the owners as well as KMPs of the company.

Forming a private limited company is a suitable choice, as it enables taxation benefits, credibility, business expansion, and faster approval of business loans. It facilitates the easy way for capital formation and pooling of funds through members.

What are the requirements for the Private Limited Company?

Before registering a Private Limited Company, there are a few basic prerequisites that the applicant must meet:

• Minimum 2 Shareholders
• Minimum 2 Directors and maximum 15 Directors.
• Directors and Shareholders can be the same individual
• Directors Identification Number (DIN) is mandatory for all Directors
• Digital Signature Certificate
• At least one director must be an Indian resident and an Indian citizen.
• To start a private limited company, you need to maintain a minimum paid-up capital of Rs. 1 lakh. However, the Companies Amendment Act, 2015 relaxed the minimum requirement for paid-up capital. Therefore, there is now no requirement for any minimum capital to be invested to start a private limited company.

What are the Documents required for the Pvt Ltd Company?

Here is the list of required documents for Private Limited Company Registration in India:

• Passport (Non-resident Indian or Foreign National)
• PAN Card
• Aadhar Card
• Driving License or Voter ID
• Passport-size photos of all directors
• Recent Bank statements
• Recent Electricity bill or any utility bill
• Rent agreement if the office is rented
• NOC from the owner of the property

(Scanned copies of all documents need to be submitted on the MCA (Ministry of Corporate Affairs) Portal)

Pvt Ltd Company Registration Fees

PVT Ltd Company Registration Fees Table:

Additional fees for the delay in filing forms

Additional and higher fees will apply if there is a delay in filing certain forms in some cases and applicable from 1st July 2022. Here are the details of the additional fees:

What are the advantages of a Pvt Ltd Company?

The following are the advantages of PVT Ltd Company:

• A Private limited company is a separate legal entity that protects the personal assets of its members from any liability.
• The members of a Private limited company have limited liability, which means they are only responsible for the amount they invested in the company.
• The shares of a Private Ltd Company are transferable, which means a shareholder can sell or give away their shares to anyone else.
• A Private Ltd company can sue and be sued in its own name, just like an individual person can.
• A Private limited company has perpetual succession, which means it continues to exist even if its members change or die.
• A Private Company does not have a minimum share capital requirement, which means it can start with any amount of money.
• A Private limited company can easily grab funds by issuing new shares or attracting investors.

What is the process of Pvt Ltd Company Registration?

Steps Involved in Pvt Ltd Company Registration:

Name Approval Of the Company: You need to submit an application to the MCA (Ministry of Corporate Affairs) to reserve the name of your company. You can propose 1 or 2 names along with the business objectives. The MCA will approve your name application within 5 working days unless it is rejected due to similarity or other reasons. In that case, you can resubmit another 1 or 2 names.

Digital Signature for Directors: You need to get a digital signature for each of the directors of your company, as the MCA does not accept physical signatures. A digital signature is issued by a certified authority in India and requires you to provide your identity proof and complete the video KYC process. If you are a foreign national, you need to get your passport and other documents apostilled by your local embassy.

Submission of the Incorporation Application: File the incorporation application once you have the digital signature; you can file the incorporation application in the SPICe Form to the MCA with all the relevant attachments. You also need to submit the Memorandum of Association (MOA) and articles of Association (AOA) of your company, which define the scope and rules of your company. The MCA will grant you the incorporation certificate along with the PAN of your company within 5 working days if your application is complete and acceptable.

Registered Office of the Company

A company that is registered in India must have a registered office in India as well. The company name should be displayed on a board at the registered office, and it should be a location where any notice or communication can be delivered. Therefore, the registered office of a company cannot be empty land or a building under construction.

The registered office of a company can be changed after incorporation if needed. The process is simple if the registered office is moved within the same city or the same Registrar of Company. However, the process is more complex and time-consuming if the registered office of a company is moved from one state to another.