The form of your business is the most crucial factor determining how effectively your business will run and whether or not will it reach its definite targets. If you are a new entrepreneur and want your business to have the structure of a Private Limited Company; you must opt for Private Limited Company registration as a legal mandate in India.
A Private Limited Company is the perfect way to start a small business in our country. The owners of this type of company are its shareholders or members whose liabilities are limited to the number of shares they hold. Generally, there are three types of Private Limited companies: Company limited by Share, Company limited by Guarantee and Unlimited Company. The membership here can start from two members and end with two hundred members. In India, most online company registration happens in the form of a Private Limited Company.
Determining to go for a Private Limited business structure will reap you the following benefits:
- Limited liability – In this form of business, you will have liability to the extent of your financial contribution. So you do not have to pay for the company debt from your personal asset.
- Easy to raise Funds –If you are a start-up business, you would require external funds after a specific period of time. But if you opt to become a Private Limited Company, you can dilute the company equity and raise funds effortlessly.
- Perpetual Succession –The Private Limited Company will have continual existence unless and until you wound it up.
- Separate legal entity – You and your company are different because a Private Limited Company is an artificial person enjoying a separate legal entity. One can initiate any legal matter only in the company name and not in the name of its Director or Shareholder.
Online Private Limited Company registration is now a hassle-free process; it involves the following four steps only:
- To apply in the Ministry of Corporate Affairs portal, you should obtain a Digital Signature Certificate.
- If you are the Director, you must file the SPICe+ form and get the Director Identification Certificate (DIN).
- To apply for registration, fill out the SPICe+ form and submit it to the MCA portal. To avoid rejection of the application, select a company name that does not match any other company.
- Wait until you complete the registration application and submit all the necessary documents. You will receive your Certificate of Incorporation after its verification.
Is it mandatory to opt for GST registration if I want to register my Private LTD Company?
Yes, GST registration for your company is compulsory; if the turnover exceeds Rs. 20 Lakhs. Consult your advocate to know about it.
I want to check whether my company is registered or not; how to do that?
Visit the official website of the Ministry of Corporate Affairs to check your Company’s registration status.
Can I use my residential address as the address of my Company?
Yes, you can use your residential address as your company’s registered address.
Online company registration has made the company registration process trouble-free. However, if you still find it arduous, worry not! Reach out to the best company lawyers who will make the process fast and smooth for you.