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How to Register a Private Limited Company in India with YathraFin ?


Starting a private limited company in India offers multiple benefits for business owners, including separate legal identity, and increased credibility. YathraFin specializes in hassle-free private limited company registration, guiding you through every step and ensuring compliance with all legal requirements. Here’s everything you need to know about private limited company registration, the benefits, requirements, and how YathraFin can assist you.


Who needs Private Limited Company ?


A private limited company is an independent legal entity separate from its owners, giving the company perpetual succession, and greater business credibility. This structure is ideal for entrepreneurs looking to secure their personal assets while building a business capable of growth and expansion.


Why Choose YathraFin for Private Limited Company Registration ?


Registering a company can be a complicated and lengthy process, but YathraFin simplifies it by handling paperwork, compliance checks, and legal submissions on your behalf. Our team ensures that each step is managed with precision, from document verification to registration filings, making it an efficient and smooth experience.

Key Features of a Private Limited Company


  • Limited Liability: Shareholders are liable only to the extent of their shareholding.
  • Separate Legal Entity: The company has an independent legal identity.
  • Perpetual Succession: Business operations continue even if ownership changes.
  • Restrictions on Share Transfers: Maintains private ownership, with transferability limited by shareholder agreements.

Types of Private Limited Companies


  • Company Limited by Shares: Liability is limited to unpaid share value.
  • Company Limited by Guarantee: Often for non-profit purposes.
  • Unlimited Company: No limit on members’ liability.

Documents Required for Private Limited Company Registration


To streamline the registration, gather these documents in advance:

  • Directors’ Identification: PAN (for Indian nationals) or Passport (for foreign nationals).
  • Address Proofs: Recent bank statements or utility bills.
  • Registered Office Proof: Rent agreement or ownership documents, and NOC if rented.
  • Digital Signature Certificates (DSC) for each director.

Eligibility Criteria


To form a private limited company, you need:

  • Directors: At least two, with at least one Indian resident.
  • Shareholders: A minimum of two and a maximum of 200.
  • Capital Requirement: While no minimum capital is mandated, an appropriate amount should align with company goals (1 lakh to crores).

Step-by-Step Registration Process with YathraFin


To form a private limited company, you need:

  • Step 1

    Digital Signature Certificate (DSC)

    Required for all directors

  • Step 2

    Director Identification Number (DIN)

    Apply to identify directors.

  • Step 3

    Name Reservation

    Choose a unique company name via SPICe+ form.

  • Step 4

    File Incorporation Form

    SPICe+ Part B for registration details, AGILE-PRO-S for licenses.

  • Step 5

    Certificate of Incorporation

    Issued by MCA, including the company’s PAN and TAN.

Rules and Regulations for Private Limited Companies


Every private limited company must comply with the Companies Act, 2013 and MCA rules, including:

  • Articles of Association (AOA) and Memorandum of Association (MOA), which govern operations.
  • Restrictions on Public Trading: Prevents public trading of shares.
  • Board Approval for Share Transfers: Ensures that ownership remains within approved shareholders.

Compliance Requirements After Registration


Once your private limited company is registered, you must comply with accounting and auditing standards:

  • Auditor should be appointed within 30days of registration. Auditor confirmation is must for registration.
  • Annual Financial Statements and Annual Return (AOC-4 and MGT-7) filings.
  • Board Meetings and Annual General Meetings (AGM).
  • Statutory Audits conducted by a qualified external auditor.
  • Income Tax and GST Filings where applicable.

Benefits and Government Schemes for Private Limited Companies


  • Limited Liability Protection: Shields shareholders’ personal assets.
  • Access to Government Schemes: Enjoy subsidies, tax exemptions, and schemes like Start-up India and MSME registration.
  • Investor Appeal: Higher credibility with lenders, investors, and customers.
FAQ

Frequently Asked Questions

These FAQs cover essential details like eligibility, required documents, process steps, and benefits. It clarifies common queries about setup, compliance, costs, and timelines.

At least two directors are required to register a private limited company in India. Additionally, one of them must be a resident of India (staying in India for at least 182 days in the previous calendar year).
Yes, foreign nationals and Non-Resident Indians (NRIs) can be directors in a private limited company in India, provided they obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN).
There is no minimum capital requirement for registering a private limited company in India. However, companies often set an initial authorized capital based on their business needs and future funding expectations.
Private limited companies in India are subject to corporate tax (typically 25-30%), Goods and Services Tax (GST), and other applicable state and central taxes depending on the business activities.
Yes, private limited companies can raise funds from venture capital, angel investors, or private equity through equity issuance or loans. However, they cannot offer shares to the general public.
For the registered office, you need to provide an electricity or utility bill, rent agreement (if leased or rented), ownership documents, and No Objection Certificate (NOC) from the property owner.
Registration typically takes 10-15 business days, depending on the accuracy of the documents and MCA processing time.
Yes, all private limited companies must appoint an auditor within 30 days of incorporation, and conduct annual audits as part of mandatory compliance.
Private limited companies restrict share transferability, have a minimum of two directors, and cannot raise capital from the public. Public limited companies can issue shares to the public, require a minimum of three directors, and must comply with additional regulatory requirements.
A DSC typically has a validity of 1-2 years but can be renewed upon expiration.
Yes, minors can be shareholders through a guardian, as they cannot enter contracts or vote.
Perpetual succession means that a private limited company continues to exist irrespective of changes in ownership or directors, ensuring business continuity.
No, shareholders have limited liability to the unpaid share value, protecting personal assets.
The Memorandum of Association (MOA) defines the company’s scope and objectives, while the Articles of Association (AOA) set internal management rules. These documents are essential for company registration.
Private companies can issue private placement bonds to select investors but cannot invite the public to subscribe to securities.
Yes, certain sectors have FDI caps and restrictions on foreign ownership, but generally, private limited companies can have foreign shareholders.
A company secretary manages legal compliance, prepares statutory records, oversees filings, and ensures governance standards are met.
It can be dissolved by voluntary winding up, striking off by the Registrar, or compulsory winding up (in cases of non-compliance or insolvency).
Yes, all private limited companies must hold an AGM within six months of the financial year’s end to discuss financials, directorial changes, and other corporate matters.
Generally, share transfer requires approval from the Board and notification to other shareholders, as private companies have restricted share transferability in their AOA.


Starting your private limited company with YathraFin provides not only legal registration but also ongoing support for compliance and growth. Explore a smooth path to business success and secure your company’s future with YathraFin’s professional guidance and support. For new clients tax saving gudiance will come at free of cost.
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