A private limited company is a business entity that allows you to raise money, issue shares and set up your own corporate identity. In India, there are several advantages of setting up a private limited company (PLC). These include tax benefits, easier bank loans and being able to compete with large companies who are not allowed by law to operate without corporate status.
What is Private Limited Company?
A Private Limited Company is a company that can be run and managed by a single person or group of people. It is distinct from a Public Limited Company as it provides limited liability, whereas in case of public limited companies, there is no such provision available to its shareholders.
The main purpose behind forming such companies is to ensure that only one person will own the shares in these firms and no one else can get access to them through transfer or sale of shares. The main advantage of forming a private limited company over other types of business entities lies in their flexibility and managerial freedom which lets you select your own employees, set up administration procedures etc., according to your requirements
Who can form a Private Limited Company?
You can form a private limited company by yourself, on behalf of another person or as an agent.
- An individual: If you are 18 years old or above and have been living in India for at least six months, then it is possible to form your own private limited company. This means that you do not require any prior consent from the government or any other organization before starting up your own business. However, if you’re still studying at school or college, then this option may not be available to you because of certain restrictions imposed by law (e.g., education).
- A partnership: Partnerships are formed when two individuals decide to work together towards achieving common goals and objectives; these partnerships can be formed by both individuals acting individually or jointly through a written agreement called partnership deed which states how much money each partner owes towards their shareholding percentage within the company itself (this will depend on how much capital has been invested into it).
Steps for Online Registration of Private Limited Company
Steps for Online Registration of Private Limited Company:
- Choose a name for your company: The first step in registering a private limited company is choosing a name for it. You can choose any name that you want but must not use any copyrighted word or phrase without permission from the owner of such word or phrase. If you don’t want to use any copyrighted word or phrase then please click here to check out our list of thousands of available names at [link]. This will help you find some good options for your company’s name!
- File an application with ROC: After choosing a suitable name, next thing that needs to be done is filing an application with Registrar Of Companies (ROC) who will issue Certificate Of Incorporation (CdI) within 15 days after receiving all required documents such as fee slip/invoice etc., as well as other documents mentioned below under “Documents Required For Filing Application”. This process takes around 6-7 working days once received by them so please ensure all required documents are submitted before applying!
Application for DSC(Digital Signature Certificate)
The Digital Signature Certificate (DSC) is a document that verifies your identity and company status. It shows how much money you have in your bank account, how many shares you own, etc. The DSC is also used by banks for authentication purposes when opening a new account or transferring funds from one account to another.
To apply for DSC, you will need to submit the following documents:
- Your application form filled out completely with all required details – including the address where we can send it
- Two passport size photos taken within 1 month before applying for DSC
Application for DIN(Director Identification Number)
- What is DIN?
DIN is an identity number which can be used by private limited companies as well as other entities. It will not only help you in filing your documents with the Registrar of Companies (RoC) but also allow you to get various benefits such as opening bank accounts, getting telephone connections and so on.
- How to apply for DIN?
To apply for DIN, you need to contact either a RoC branch or any other company registration agency where they will assist you in completing all necessary documents and submitting them along with required fees through cash-on-delivery mode. You should also ensure that the applicant has all necessary information about him/herself such as age details, address etcetera before submitting any application form online or offline depending upon its availability at that particular location where he/she lives
Apply for Name Reservation with ROC.
To get the name reservation, you must apply for it with the Registrar of Companies (ROC). The ROC is a government agency which deals with all registrations and notifications of companies in India. You can apply for name reservation through their website or through any other channel by paying an application fee of Rs 500/- per person, who wants to reserve their names.
The procedure is simple:
- Fill out all required details on form SC-59A;
- Send this form along with all relevant documents (such as passport size photographs) along with your application fee at least two weeks before closing date mentioned on page 3 of Form SC-59A;
- Wait for approval from ROC when they receive your request (usually takes around 2 weeks);
- Once approved by ROC, take copies straight away because it’s not possible anymore after approval unless you have received prior intimation from them as well
Filing of documents with ROC to incorporate Pvt Ltd company.
The following documents need to be filed with Registrar of Companies (ROC):
- Memorandum and Articles of Association
- Certificate of Incorporation issued by the Registrar of Companies.
Incorporate your own private limited company today
You can do it yourself. It is simple and easy to do, so you will save money by doing it yourself. You can start your business quickly without any help from lawyers or accountants. And if you are living in India, then registering a private limited company is just as easy as visiting a government office!
We hope this article has helped you understand what a private limited company is and how to form one. If you have any questions or comments, please let us know in the comments section below!