Requirement for Pvt Ltd Company | The Checklist

If you are looking to start a Pvt Ltd Company, it is important to know the basic and legal requirements to start one. Knowing the requirement for Pvt Ltd Company Registration Online can help you to make sure that your company is set up correctly and legally. 

 

This blog post will provide an overview of the most important requirements for a Pvt Ltd Company, so you can start your business with confidence.

 

Documents Required for Pvt Ltd Company

 

Office 

• Rent agreement or NOC (No objection Certificate)
• Utility Bill (Electricity bill, Internet Bill or Telephone Bill)

 

Directors

• Passport-size Photos of Directors
• Aadhar Card
• PAN Card
• Digital Signature Certificate (Class 3) of Directors
• Self-declaration about the Directorship

 

Requirement for Directors and Shareholders

 

Minimum of 2 Directors are Mandatory for a Private Company

 

Forming a Private Limited Company requires a minimum of two people. These people are the shareholders and directors of the company and must agree to form the company. 

 

Each shareholder must have at least one share.

 

However, if you only have one director, you can register as a One Person Company and enjoy all the benefits of a Pvt Ltd Company.

 

The shareholders have voting rights in the company and can appoint directors, who will be responsible for the day-to-day operations of the business.

 

Any number of individuals can be members of the company, but the actual owners of the shares must not exceed 200. 

 

DIN (Director Identification Number) of Every Director

 

A DIN (Director Identification Number) is a unique number issued by the Ministry of Corporate Affairs (MCA) to all directors and promoters of a company. It is mandatory for all those who want to become directors of any company. 

 

The DIN helps to maintain accurate records and documents related to each director, thereby ensuring better compliance.

 

The process to obtain the DIN is fairly simple. To begin with, the applicant must fill out Form DIR-3 which is available on the MCA website. To eliminate the hassle, our experts will apply for the Director's DIN for your company.

 

Once the form submits, the MCA (Ministry of Corporate Affairs) will review it and issue the DIN within 5-9 working days.

 

In conclusion, obtaining a Director Identification Number is an important requirement for forming a Private Limited Company in India. 

 

It helps to track the identity and records of each director, thereby ensuring proper compliance with all applicable regulations.

 

MOA (Memorandum of Association) and AOA (Articles of Association)

 

The Memorandum of Association (MOA) and Articles of Association (AOA) are two important documents that are required for any private limited company in India. 

 

The MOA outlines the objectives of the company and the AOA describes the regulations and by-laws that must be followed by the company and its members.

 

The MOA should include the name of the company, its registered office address, the main objects of the company, and other clauses related to the formation of the company such as share capital, liabilities of members, alteration of share capital, borrowing powers, etc.

 

The Article of Association (AOA) consists of rules and regulations which guide the internal management of the company and details about matters such as voting rights, transfer of shares, appointment and removal of directors, and other procedures related to the day-to-day activities of the company.

 

Both MOA and AOA should be filed with the Registrar of Companies (RoC) along with other documents as part of the incorporation process. 

 

The RoC will review the documents and issue a Certificate of Incorporation once it confirms that the requirement for Pvt Ltd Company are complete.

 

Company must have a Registered Office

 

Having a physical office is a primary requirement for Pvt Ltd Company. At the registered office the company's day-to-day operations will be conducted and all the official communication will take place. 

 

It means that all communications, notices, and other documents of the company must be sent or served to the registered office address. 

 

A company must have its own premises, or it can rent out an office space or purchase a piece of property where the registered office will be located. 

 

The registered office must be physically present in the same city/state where the company was incorporated. 

 

The address should also be in all documents of the company including its letterhead, bills, receipts etc. 

 

Promoters of the Company Must Agree to form a Company

 

The promoters of a company are the individuals who are responsible for forming and managing the company. 

 

They are the directors, shareholders, members, partners or guarantors of the company. They have to agree to all the rules and regulations laid down by the company in order to form a Pvt Ltd Company. 

 

The promoters have to fill up all the necessary forms and complete all the procedures set by the Companies Act of India.

 

The promoters need to choose a name for the company and apply for registration of the same with the Registrar of Companies (ROC). 

 

Once the name approves, the promoters have to sign a Memorandum of Association (MOA) and Articles of Association (AOA). 

 

The promoters also need to declare the minimum paid-up capital of the company, appoint the directors and get their Director Identification Number (DIN) from the ROC. 

 

Lastly, they must obtain a Certificate of Incorporation from the ROC which is the primary requirement of Pvt Ltd Company. It confirms that all the procedures are complete and that the company is legally registered.

 

Funds Requirements for Pvt Ltd Company

 

Required Fee for Registration

 

The required fee for registering a private limited company depends on several factors, including the number of promoters, the proposed capital, and the type of services. 

 

The fees usually range from Rs.7,000 to Rs.25,000, including GST. 

 

Legal Registration Fee

 

The legal registration fee varies from state to state. 

 

In some states, the registration fee is Rs. 5,000 for up to 10 lakhs of authorised capital. 

 

For authorised capital between 10 lakhs and 1 crore, the registration fee is Rs.10,000. For amounts more than 1 crore, it will be higher. 

 

Professional Fee

 

Professional fees vary depending on the services provided by the professional. 

 

It could range anywhere from Rs.10,000 to Rs.25,000 plus applicable taxes.

 

However, at StartEazy we charge the lowest professional without compromising on service quality.

 

Finally, GST (Goods and Service Tax) of 18% will also apply for the registration. All these fees must be paid before the company registration process can complete. 

 

The cost of registering a Pvt Ltd Company offline is expensive. 

 

However, by choosing online registration service providers like StartEazy, you can reduce the costs by up to 80%, and cut down the time taken for registration by 90%.

 

Our team of experts streamlines the entire process, making it quicker, more affordable and much simpler.

 

Minimum Paid-up Capital of Rupees 1 Lakh

 

The Companies Act of 2013 requires a minimum paid-up capital of Rs. 1 lakh for the formation of a Pvt Ltd Company. 

 

The company must have a paid-up capital of at least Rs. 1 lakh to start operations. 

 

This is the amount of money that the promoters of the company have contributed to the business. The total share capital of the company must not exceed Rs. 10 lakhs and must divide into shares of at least Rs. 1 each. 

 

It is also important to note that a Pvt Ltd Company can only accept deposits from its members and not from the general public. 

 

You must maintain the paid-up capital in a bank account until the time that the company liquidates.