Private Limited Company

Overview:

Private Limited Company is the most prevalent and popular type of corporate legal entity in India. The Ministry of Corporate Affairs governs private limited company registration in India. Companies are incorporated and regulated under the Companies Act, 2013 and the Companies Incorporation Rules, 2014. R R H & Associates can help you with company registration across India at a very affordable price point.

Eligibility and Requirements:

To register a private limited company, a minimum of two persons to act as Directors and shareholders are required. The shareholders of a private limited company can be a corporate entity or a natural person. Director can only be a living person with one Director being a resident and Indian Citizen. A person is designated as a resident if he/she spends over 186 days in India.

There are no restrictions on foreign companies or foreign nationals being Directors or shareholders of a private limited company. As, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and Shareholders of a Company with Foreign Direct Investment, incorporating a company is the preferred choice of entry to India for foreign promoters.

Procedure to be followed for starting Private Limited Company:

A private company can be incorporated by following the provisions and regulations stated under the Company’s Act 2013. There are many benefits that are achieved by a private limited company. It enjoys a greater stability, legal identity, it is flexible and a greater combination of capital. This is supported with the diversified and different abilities of capital accumulation. The private company can be easily identified by just looking at the name, number of members it incorporates, the managements, directors etc. The number of directors who are responsible to incorporate must be mentioned in Articles of Association. However, the private companies who enjoy its distinguished legal entity and the private companies which are the subsidiary of the other public companies is differentiated in Company’s Act.

Documents Required for Registration:

The documents required for company registration can be grouped under three heads:

1. Documents for Directors: Two identity proof documents like Aadhaar, PAN, Passport, Driving License or any other Government-issued identity document would be required. Indian nationals are mandatorily required to provide PAN. Foreign nationals are mandatorily required to submit attested passport copy.
   In addition to the identity proof, the Directors must submit residence proof that is less than three months old. Proof of residence documents includes bank statements, electricity bill, water bill, gas bill and telephone bill.
2. Documents for Registered Office: Companies registered in India must mandatorily maintain a registered office within India. In the case of leased property, the copy of lease deed for the registered office premises along with a NOC from Landlord and Electricity bill/property tax receipt/water bill copy of the registered office property. In case of own property, copy of sale deed along with the EB bill/property tax receipt/water bill copy of the registered office property.
3. Documents for Corporate Entities: In case one of the shareholder or subscriber to the MOA and AOA is a Corporate Entity (Company, LLP, etc.,) then Certificate of Incorporation of the Body Corporate must be attached along with the resolution passed by the Body Corporate to subscribe to the shares of the company under incorporation.

Process for Registration:

R R H & Associates can incorporate a company in less than ten days – subject to Government processing times and availability of all documents. On collecting the necessary information and documents digitally, the process for company registration begins with obtaining digital signatures for the proposed Directors and Shareholders. Your R R H & Associates Engagement Manager will submit the digital signature application and generate a link to complete video eKYC verification. The applicant would then have to complete a short selfie video and verify OTP to authenticate the application. Upon approval of the application, the digital signature will be issued on the same day.

Parallel to the digital signature process, your Engagement Manager will also submit a name approval request to the Ministry of Corporate Affairs for approval. Please ensure that you provide multiple options for the company name that are in line with the Companies Naming Regulations in India to ensure quick approval. The Government typically provides name approval within 48 hours in India.

On obtaining name approval, we will prepare all the legal documents that must be signed by the Directors and Shareholders on the same day. Once you have verified the documents and signed off, we will apply for incorporation with the MCA on the same day. The MCA will provide incorporation approval in about 48 – 72 hours during business days. If the incorporation approval is approved, the Government will issue the incorporation certificate, PAN for the company and the TAN.

Bank Account Opening for Company:

R R H & Associates has exclusive relationships with top Banks in India wherein we can help you open a zero-balance Current Account digitally through our platform. Based on your choice of Bank, we can forward the request digitally to the Bank for opening the company’s current account from the comfort of your home in any city or town in India. Note: Bank account opening would be subject to the bank’s process and products offered by the Bank from time to time.

Post-Incorporation Compliances:

All companies registered in India are required to maintain compliance under various regulations. Failure to maintain compliance can lead to penalty or disqualification of Directors. R R H & Associates can help you with accounting and maintaining of statutory compliances for the company at a very affordable price point.

Some of the important compliances for companies registered in India include, but not limited to:

1. Appointment of Statutory Auditor: The Board of Directors must appoint a practising Chartered Accountant within 30 days of incorporation.
2. Commencement of Business: Within 180 days of incorporation, the capital mentioned in the MOA [Memorandum of Association] must be deposited in a bank and commencement certificate must be obtained from MCA.
3. Income Tax Filing: Companies registered in India must file income tax return each year in Form ITR-6.
4. Annual Return: Companies registered in India must file MCA annual return each year in Form AOC-4 and MGT-7.
5. DIN KYC: DIN KYC procedure must be completed each year for the Directors of the company.