Discover how registering a private limited company can provide limited liability, enhance credibility, and ensure long-term growth for your business.
Overview
A Private Limited Company (PLC) is a popular business structure in India, offering entrepreneurs a distinct legal identity, limited liability, and a professional image. This structure is ideal for startups and small to medium enterprises (SMEs) seeking scalability and credibility. Unlike other business models, a PLC separates personal assets from the company’s liabilities, providing security to its shareholders. It allows businesses to raise capital more efficiently and ensures continuity despite changes in ownership or management. The legal framework governing a PLC enhances trust among stakeholders, including vendors, partners, and financial institutions. At Legal Corner, we streamline the entire registration process, ensuring compliance with all legal requirements, so you can focus on growing your business.
Eligibility
Minimum Shareholders : At least two shareholders are required to form a Private Limited Company.
Minimum Directors: A company must have a minimum of two directors, with at least one director being an Indian resident.
Unique Company Name: The company must have a unique name that complies with the Companies Act, 2013.
Director Identification Number (DIN): All directors must possess a Director Identification Number.
Digital Signature Certificate (DSC) : A Digital Signature Certificate is needed for filing electronic documents.
Registered Office : The company should have a registered office within India.
Memorandum of Association (MOA) and Articles of Association (AOA) : These documents outline the company’s objectives and regulations.
Benefits
Limited Liability Protection : Shareholders’ personal assets are safeguarded against the company’s liabilities, meaning they are not personally responsible for business debts.
Credibility and Trust: A PLC structure enhances the company’s credibility, making it easier to secure loans and attract investors, as it is seen as more reliable than other business forms.
Perpetual Succession : The company continues to exist regardless of changes in ownership or management, ensuring stability and continuity.
Tax Benefits : PLCs often enjoy tax benefits, including deductions on expenses and lower corporate tax rates, which can enhance profitability.
Capital Raising:The ability to issue shares makes it easier to raise capital, supporting business expansion and growth.
Procedure
Obtain Digital Signature Certificate (DSC): Acquire a DSC for all directors to sign electronic documents.
Apply for Director Identification Number (DIN): Obtain a DIN for each director through the Ministry of Corporate Affairs (MCA) portal.
Reserve Company Name: File an application with the Registrar of Companies (ROC) to reserve a unique company name.
Prepare MOA and AOA: Draft the Memorandum of Association and Articles of Association, which outline the company’s objectives and internal rules.
File Incorporation Forms: Submit Form INC-32 (SPICe) along with MOA and AOA to the ROC for approval.
Obtain Certificate of Incorporation: Receive the Certificate of Incorporation from the ROC, confirming the company’s legal existence.
Apply for PAN and TAN: Obtain a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the company.
Open a Bank Account: Set up a corporate bank account to manage financial transactions.
Why Legal Corner
Expert Guidance : Our team of professionals provides expert guidance throughout the registration process, ensuring compliance with all legal requirements.
Personalized Solutions : We offer tailored solutions to meet the specific needs of your business, providing support that aligns with your goals.
Transparent Process : Our commitment to transparency ensures you receive timely updates and clear communication at every step
Efficiency and Speed: We streamline the registration process, minimizing delays and ensuring a quick turnaround time for your business setup.
Comprehensive Support: Beyond registration, we offer ongoing support for compliance, tax filing, and other business needs, helping your company thrive.