PVT. LTD. CO. FORMATION
HELPMYBIZ IS INDIA’S LEADING PLATFORM TO INCORPORATE YOUR PRIVATE LIMITED COMPANY AT THE LOWEST FEES UNDER 8 WORKING DAYS!
What is a private limited company?
A private limited company is incorporated according to the rules and regulations laid out in the Companies Act, 2013. Today startups prefer to form a private limited company because of the flexibility and security this type of company has to offer. To put the popularity in numbers, in the financial year 2020, India had over 122,000 companies registered with a combined authorized capital of 2.2 Trillion Rupees. Among them, the number of private companies stood at 120,000 (almost 98%). If you are looking to raise capital in the future and limit your liability to the capital invested in the business, a private limited company is your go-to choice.
Our team at helpmybiz has been trained to simplify the process for you and assist you in every step of formation for your private limited company. It is so that you can sit back comfortably and let the experts do the work! You can get in touch with us here.
We follow a 3 step approach for all our services for our clients,
Talk to you over call and understand your requirements. After that we assist you in picking a suitable unique name for your company.
Apply for DSC, DIN and Name approval.
Assist you in drafting MoA and AoA. Upon the approval of the 2 documents, apply for PAN and TAN of the company.
Under Companies Act, 2013. Section 2 (68)
A private company means having a minimum paid-up share capital of INR 10,000/- or such higher paid-up share capital as may be prescribed and which by its articles.
(i) restricts the right to transfer its shares
(ii) except in case of One Person Company, limits the number of its members to two hundred:
Provided that where two or more persons hold one or more shares in a company jointly, they shall, fir the purpose of this clause, be treated as a single member:
Provided further that -
(A) persons who are in the employment of the company; and
B) persons, who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and
(iii) prohibits any invitation to the public to subscribe for any securities of the company:
BENEFITS
Before diving in further let us understand why private limited companies are preferred and whether it fulfills all your requirements.
Separate Legal Entity
A company is deemed as an artificial individual created under the purview of the law. Thereby it is considered separate from its promoters, shareholders, debtors, creditors, and management. Any transaction related to the company is recorded under the company's name itself.
Limited Liability
Your liability towards the company is limited to the amount of capital you have committed. In case the company is dissolved or goes bankrupt your assets and belongings cannot be touched by any creditor.
Perpetual Succession
Since the company is a product of the Companies Act, 2013 it has an indefinite life until unless it is dissolved by the owners legally. The lifetime of any of its owners or managers does not limit it.
Raising Capital
Investors prefer to invest in a private limited company due to its flexible structure and the potential to expand without increasing the risk for the investor above the capital pledged by him/her.
Transferability of ownership
The ownership of a private limited company is proportional to its shares. If an investor wishes to exit or enter the company can do so easily by trading his/her shares with another private individual. This makes an investor's capital fairly liquid compared to other forms of business.
Simplified Share Allotment
The number of shareholders in a private limited company is relatively less than a public limited company. This results in easier management of share allotment. Further there are less compliances associated with government directives.
PRE-PREPARATIONS REQUIRED
A Unique Name
You need to decide on a unique company name and ensure that the name does not resemble any existing company name in the Ministry of Corporate Affairs portal. You need to have at least 4 names ready just in case one of them does not get accepted. You can check for existing company names on the mca portal.
Minimum of 2 Directors
You need to have a minimum of 2 people sharing the same vision. The number of directors cannot exceed 15. At least, one of the directors needs to be a resident of India.
Registered Office
The Company needs to declare the location of its registered office. The location can be your residential address or a rented one as long as the landlord grants you a NOC (No Objection Certificate).
Capital Contribution
A minimum paid-up capital of INR 10,000/- is required to start the company.
Business Object
There needs to be a clear object about the purpose behind the formation of the company.
DOCUMENTS REQUIRED
Directors/Shareholders
01
Scanned Copy of Pan Card
02
Scanned Copy of Aadhar Card/Voter Card
03
Address proof (Bank Statement, Mobile/Telephone Bill)
04
Scanned Copy of Passport size photo
05
Phone number and email id of all shareholders
Registered Office
01
Scanned NOC (No-Objection Certificate)
02
Ownership proof (Gas Bill/Electricity Bill/Property Tax)
03
Property Tax
04
Rent Agreement – If the property is rented.
REGISTRATION PROCESS
The process for formation of a private limited company in practicality involves many steps. However helpmybiz simplifies the process to just 3 steps for your convenience. Below we have explained the complete process that goes behind the incorporation.
Day 1-2
Contact our Expert for consultation on whether this business structure suits your requirement. A Customer Relationship Manager is assigned to you and helps you fill up a short form from our side. He further assists you in preparing the necessary documents required and asks you to pay 50% of the fees.
Day 2-4
After receiving the fees and your input we send the Digital Signature Certificate (DSC), Director Identification Number (DIN) and company name for approval.
Day 5-6
After DSC, DIN and Name are approved we draft a Memorandum of Association (MoA) and Article of Association (AoA) for you according to your requirements. We send it over to you for rechecking and your signature. We request the rest 50% to be paid.
Day 7
Send over the final MoA and AoA to ROC (Registrar of Companies) for approval. At the same time we apply for the TAN and PAN of the company as well.
Day 8
The company is incorporated and we send over all the documents to you and ensure you are satisfied with the work.
The best part of having HelpMyBiz open your company for you is that our services are available 100% online. So you do not have to physically visit our office for registering your company. We at HelpMyBiz strive to achieve maximum satisfaction for our clients! Get in touch with our professional team to get started today!
