Guide To Online Company Registration In India

In the vibrant economic landscape of India, starting a business has been made significantly easier, thanks to the facility of online company registration. India has witnessed a tremendous surge in startups and private businesses, mainly attributed to the straightforward process of private limited company registration or Pvt Ltd company registration. This article by Lawgical India elaborates on the process and benefits of this method, effectively explaining why it's the preferred choice for many.


Why Is Private Limited Company The Preferred Choice

Private Limited Company (PLC) registration is a popular avenue for starting a business in India. The allure of PLC registration is primarily due to its benefits. It offers limited liability protection to founders, separate legal existence, superior credibility, and ease in procuring external funds. As a result, startups and growing businesses, that are usually associated with higher risk and growth aspirations, lean towards a company structure. It is registered under the Ministry of Corporate Affairs (MCA), as per the Companies Act, 2013.


Limited Liability Protection

In the volatile world of startups, securing loans and procuring things on credit is commonplace. The traditional partnership model leaves partners' personal assets vulnerable in case the business defaults on its loans. However, in a private limited company, the personal assets of directors remain unaffected; only the investment in the business is at stake.


Credibility in the Market

Private Limited companies enjoy a better image and credibility in the market. This structure is well-recognized and reliable, hence corporate customers, vendors, and government agencies prefer dealing with Private Limited Companies over proprietorships or normal partnerships.


Ease of Raising Funds and Loans

One of the notable advantages of a Pvt Ltd company is the ease of raising funds. Such companies have broader options to raise funds through bank loans, angel investors, and venture capitalists, compared to Limited Liability Partnerships (LLPs) and One Person Companies (OPCs).


Attracting Employees and Investors

Private limited companies are favorites among investors due to their well-structured and less complex framework. Furthermore, they offer a smooth exit process, which is a significant plus for investors. Additionally, the corporate structure and benefits like corporate designations and stock options make attracting and retaining employees easier.


Easy to Sell

Selling a private limited company involves less documentation and cost, thus making it an easier and more desirable structure for business owners.


Documents Required for Online Company Registration in India

For online company registration in India, particularly for a private limited company, you need to have the following documents handy:


  • PAN and Aadhaar Card of all Indian Shareholders and Directors

  • Identity Proof: Voter ID, Passport, or Driving License of the Shareholders and Directors

  • Proof of Address: Latest Telephone Bill, Electricity Bill, or Bank Account Statement of the Shareholders and Directors

  • Recent passport-size photographs of all the Shareholders and Directors

  • Business Address Proof: Latest Utility Bill (Electricity, Telephone, Gas, Water) or Property Tax Bill of the registered office address. In the case of a rented property, a rent agreement and NOC from the owner are required


Considerations while Registering a Private Limited Company

While embarking on the journey of private limited company registration, there are certain considerations to bear in mind, as defined by the Companies Act 2013:


Directors: A private limited company should have a minimum of two directors and a maximum of fifteen. At least one of the company's directors should be a resident of India.


Unique Name: The business name must be unique. It should not be similar to any existing companies or trademarks in India.


Minimum Capital Contribution: No minimum capital amount is mandated for a company. However, the company should have an authorized capital of at least ₹1 lakh.


Registered Office: A company's registered office doesn't need to be a commercial space. It can even be a rented home, provided a NOC is obtained from the landlord.


How Lawgical India Can Help You In The Private Limited Company Registration Process


Lawgical India simplifies it for you. Our professional team offers end-to-end support, transforming the daunting task of Pvt Ltd company registration into an easy, seamless journey.


Step 1: Assistance with RUN Name Approval

The initial stage of private limited company registration involves the reservation of your desired company name. Lawgical India helps you submit a request for name approval to the Ministry of Corporate Affairs (MCA). Our team guides you in selecting one or two potential names aligned with your business objectives for the application.


Step 2: Procurement of Directors' Digital Signature Certificate (DSC)

In India, the MCA does not recognize traditional signatures. All filings with the MCA must include a Digital Signature Certificate (DSC) certified by an Indian certification authority. Therefore, it's mandatory for directors to acquire digital signatures before the company's incorporation.


At Lawgical India, we facilitate the acquisition of a Digital Signature Certificate (DSC) for directors through a recognized certification entity. To procure a digital signature, directors must provide a copy of their identification documents and successfully complete a video KYC process. If a director is a foreign national, we guide them through the process of having their passport and other documents apostilled by the nearest embassy.


Step 3: Filing of Company Incorporation Application

After securing the necessary digital signatures, the next step is to file the incorporation application in the SPICe form. Along with the application, you must also submit the company's Memorandum of Association (MOA) and Articles of Association (AOA) to the MCA.


Our team at Lawgical India guides you through this process, ensuring all relevant documents are in place. We work to ensure the MCA finds the incorporation application complete and acceptable, paving the way for your Incorporation certificate and PAN receipt. Typically, the MCA approves all incorporation applications within five business days.


FAQ

Q: What are the restrictions on naming a Private Limited Company In India?

A: For a private limited company, the name should be unique and should not resemble any existing company's name or trademark in India. 


Q: Does a private limited company have continuous existence?

A: A private limited company maintains continuous existence as long as annual compliances are met. If these requirements are not fulfilled, the company may go dormant and, eventually, be struck off the register.


Q: Can a Private Limited Company own and carry out multiple businesses?

A: A private limited company can operate multiple businesses if specified in the Memorandum of Association (MoA) and approved by the company registrar. However, unrelated activities cannot be registered under the same company.


Q: What is the minimum capital needed for company incorporation?

A: There's no minimum capital requirement for starting a private limited company in India.

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