It is easy to start pvt ltd company in India. This is also one of the most famous and commonly registered companies in India. Many startup companies consider private limited company registration as their first choice.
How to start pvt ltd company in India / Process of company registration
To start pvt ltd company in India first of all you need to apply for DIN followed by other steps. Process of company registration is mentioned below with correct steps of registering pvt ltd company.
First of all register for Directors Identification Number (DIN)
Then apply for Digital Signature of Directors
Reservation of the name of the Company. Suggested name must not be registered before and subject to availability and approval.
Important: Two private limited companies cannot have same name.
Draft Memorandum of Association carefully because this includes basic work structure of company.
Now Draft Articles of Association
File documents with authorities and get approval
At the end get final Certificate of Incorporation for the company
You need to pay all government fees associated with the registration.
Reasons to Register a Private Limited Company – (Features)
Private Limited Company allows owners to subscribe shares. These owners are also share holders or promoters of business.
It is a separate legal entity in terms of taxation and liability.
A private limited company has limited liability on shareholders. If the company is in loss then owner’s assets are not at risk.
Promoters of the company can appoint executive directors or independent directors to manage business.
You need minimum 2 Directors for registration because this is minimum government requirement. Therefore, before starting the registration process ensure you have two names available.
Total paid up capital for this type of company is 100,000. You can also increase the amount depending on the kind of investment directors want to make at the time of starting the company.