Private Limited Company Registration

Private Limited Company

What is Private Limited Company?

A Private Limited Company (PLC) is one of the most common types of legal entity in India. Private Limited Companies are governed by the Companies Act, 2013 and require a minimum of 2 Directors and 2 Shareholders with one of the Directors being an Indian Resident and Indian Citizen. Private Limited Company registration (PLC registration) is a popular way to start a business in India. It offers benefits like limited liability protection to founders, separate legal existence, better credibility, and ease in raising external funds. Hence, Startups and progressive businesses, with higher risk and growth aspirations, prefer a company structure. It is registered with the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013.

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Documents Required for Company Registration

The proposed directors of a private limited company must present the following documents as proof of identification in order to register a company:

To register a company in India, the following are minimum requirements:

A. 2 Directors – 1 Person should be an Indian National and Indian Resident.

B. 2 Shareholders – The Directors can be shareholders.

C. Registered Office in India

Indian Nationals Passport / Driver’s License / Election ID / Ration Card / Aadhar ID / Bank Statement
Foreign Nationals Drivers License / Bank Statement / Residence Card / Bank Statement

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Capital Required to Start a Company

A company can be started in India with a very minimum amount of capital. There is no fixed amount and the shareholders of the company being incorporated can determine the capital they wish to contribute. While setting up the capital structure of the company, the following are some of the concepts to be kept in mind:

Face Value of Share The face value of a share is the price per share with which the company is incorporated. Normally, the face value of share is Rs. 1 or Rs. 10 or Rs. 100 or Rs. 1000 or Rs. 10,000.
Authorised Capital Authorised capital is the total value of shares a company can issue to shareholders. Normally, all companies are incorporated with an authorized capital of Rs. 1 lakh or Rs. 10 lakhs.
Paid-up Capital Paid-up capital of a company is the number of shares issued to shareholders for which they have paid or deposited money to the company.

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Compliances Required For Sole Proprietorship Firm

A sole proprietor is the sole owner of the proprietorship business. Hence, a business will be carried forward by making new bank account for the business and GST registration will be done by using PAN and Aadhar of the proprietor. The proprietor is completely responsible for all the assets and liabilities of the business.

Income Tax Return Filing The proprietorship's business owner must submit a personal income tax return using form ITR-3 or ITR-4
Business Income Only the ITR-3 and ITR-4 income tax forms allow for the declaration of business income. As a result, in order to comply with income tax requirements, all proprietorships must submit forms ITR-3 or ITR-4
GST Return Filing If a proprietorship is registered for GST, a filing GST return each month and every three months in accordance with the business's registration plan
TDS Returns Tax must be withheld at source and TDS returns must be filed quarterly if the proprietorship has employees or spends more than a specific amount on goods and services.

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Apply Now

Our team at CA on Web is available at your service and will help you to obtain the registration in a small time frame of 7 to 12 days. All you need is to plan for the business and all the paper work and formalities will be handled by our team of experts. The entire process of registering a company in India is regulated by a body called MCA (Ministry of Corporate Affairs). The incorporation and registration process requires certain formalities to be fulfilled.