Private Limited
Company Registration
Register your company at just ₹3000
(govt fees + tax extra)
Within 10 working days
A private limited Company is a type of organization you can set up to run your business.
As such they need to be registered with the Ministry of Corporate Affairs (MCA) and are subject to relevant Rules and Regulations
Your Private Limited Company with Targolegal
1
2
3
4
5
Step 1
Firm name submission & Approval with object
Step 2
Registration of directors with MCA & creation of Digital signature
Step 3
Drafting and filling of
the required documents for your company registration
MOA & AOA
Step 4
Filing of MOA and AOA with Ministry of Corporate Aairs
Step 5
Obtaining Certificate
of Incorporation
Overview
Importance of Registration
Registration Conditions
What is a Private Limited Company ?
A private limited Company is a type of organization you can set up to run your business. As such they need to be registered with the Ministry of Corporate Affairs (MCA) and are subject to relevant Rules and Regulations.
The word “Limited” means that the financial responsibility of the company is limited to the value of the Company's shares that have not been paid for.
The word “Limited Liability” denotes that the basis of a Limited Liability company is, that all debts incurred by a company are the company's liabilities and are not directly the legal liabilities of the Company's shareholders or directors. The Directors of a limited liability company do not incur personal liability as all their acts are undertaken as agents of the company. However, liability may be imposed on directors in the event of wrongful or fraudulent trading , i.e. if a director acts in an inappropriate manner.
Overview
Importance of Registration
Registration Conditions
Importance Of Registration
Private Limited Company is one of the most stable and a much used business structure in India, owing to its stability and availability of limited liability protection. The Private Limited Company registration is the most popular and useful form of business structure among the startups, small and medium size businesses. This helps in easy introduction of non related people or entities as shareholders of the company and as such providing capital to the business without any hassles or personal guarantees. The business, being in the form of a separate legal entity, allows the Company easy access to borrowed funds from banks and financial institutions.
Overview
Importance of Registration
Registration Conditions
Registration Conditions
1.Members and Directors
i) A minimum of two (2) subscribers to the Memorandum of Association
i) A minimum of two (2) directors out of which one (1) should be a Resident of India and a maximum of fifteen (15) directors.
ii) A minimum of two (2) shareholders/ members and a maximum of 200 shareholders as required.
iii) Authorised Capital - No Minimum Requirements
iv) Paid Up Capital - No Minimum Requirements
v) All the Directors should obtain a Director Identification Number (DIN)
vi) All subscribers should obtain a Digital Signature (DSC)
2. Name of the Company
The name of your company is very important and should be one which adds on a positive/weightage impression to the company and its operations.
Naming your new company can be an exciting yet challenging task. However, it is vital to follow a few naming guidelines set by the Registrar of Companies (ROC) while selecting a name for your new company.
Follow the rules and get your company name approved in no time.
Preferred Format accepted by the MCA
-
Unique Component + Descriptive Name + Private Limited.
Unique Component
-
For instance, in Targo Legal Private Limited, Targo Legal is a unique component. After you have come up with a name, you need to ensure that no other company has been registered with a similar name. While searching for your unique component, think creatively.
-
In the case of unique components, abbreviations, adjectives and generic words are not allowed. For e.g; the names like BBC or XYZ would be easily rejected.
Descriptive Name
-
From the above example, Targo Legal comes under the consulting category. The descriptive name depends on the type of business.
Check the availability of the company name
-
Your company name should be unique and needs to get approval from the ROC. Search for a unique name for your company.
Check for a trademark, if any
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It is impossible to register your company name if there is an existing trademark with a similar name.
List of things to consider when selecting a company name
-
Choose a unique name and not an undesirable name
-
Ensure that the name is not generic
-
Do not use abbreviations in the name
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Do not include the country’s name
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Do not use a name that is associated with the foreign government.
Choosing the name of the company is often a technical task. A private limited company is required to cover three aspects while deciding a name for itself:
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Main name
-
Activity to be carried out
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Mention of ‘Private Limited Company’ at the end.
Pro tip: It is not always necessary that the name the business owner is looking for will be available, as no two companies can have the same name. Therefore, it is a requirement that at the time of registration, every company has to send 5-6 names for approval to the Registrar of Company (ROC). Moreover, the submitted names should not have a close resemblance with any other company’s name.
3. Registered office Address
After registration of the company, the next step is to file the permanent address of its registered office with the registrar of the company (ROC). The registered office of the company is where the company’s main affairs are being conducted and where all the documents are placed.
Compare your options before incorporation of company
An introduction about a business or start up formation option is vital for deciding the right form of business registration.
The Companies Act, 2013 and Limited Liability Partnership Act, 2008 have brought about more business formation choices for entrepreneurs.
The key factors that influence the legal form of a business are, the nature of your business, customer’s profile (corporate, small businesses or individuals ), expected business turnover, scalability of your business idea, and future funding prospectus.
Every entrepreneur/promoter should take the effort to know about the pros and cons of these legal forms for new company registration so as to choose the best for your Company.
We at Targo Legal also offer Private Firm, LLP ,OPC registrations, and many more services that may suit your registration requirements.
Feel free to contact us for details regarding Private Limited Company Registration Cost, and to know more about, how to register a company.
Do I need a Registration?
What type of business names can I keep?
How risky is it for me?
To what extent is each member of the business liable?
Tell me the
minimum membership limit
Is foreign ownership allowed?
How much will I get taxed
What are my annual tax filing norms?
Is Annual Audit Required?
Can I convert my business into any other legal form??
Compulsory Conversion to
Private Limited Company Applicable?
PRIVATE LIMITED
COMPANY
Yes, Ministry of Corporate Affairs registers Private limited company under the
Companies Act, 2013
Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLP’s
or companies
Private Limited Company is a separate legal person in the eyes of law, registered under Companies Act 2013. So, the shareholders are not responsible for business liabilities.
Liability is limited to his/her share capital contribution.
2 People
Yes
Profits get taxed at 25% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
Every financial year Private
Limited Company must file Annual Accounts and Annual Return with the Registrar of Companies. Plus,Income
Tax must be filed separately.
Statutory audit is to be conducted irrespective of business transaction and turnover. Income tax audit is
applicable if turnover exceeds 2 Crs
Yes, Private Limited Company can be converted into a Public Company or LLP.
Even, Public Limited Company can be converted into a Private Limited Company.
NO
LIMITED LIABILITY PARTNERSHIP
Ministry of Corporate Affairs registers an LLP business
under the Limited Liability Partnership Act, 2008.
Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLP’s
or companies
“LLP” is a separate legal person in the eyes of law, registered under LLP Act 2008. So, the partners are not responsible for business’ liabilities.
Liable to the extent of their contribution (in money, in kind or in services extended)
to the LLP.
2 People
Yes
Profits get taxed at 30% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
Every financial year Annual Statement of
Accounts &
Solvency and Annual Return with the Registrar.Plus, Income Tax must be filed separately.
Statutory audit is to be conducted if partners contribution exceeds 25 lakhs or turnover exceeds 40 lakhs. Income tax audit is applicable if turnover exceeds 2 Crs
Yes, Private Limited Company can be converted into a Public Company or LLP. Even, Public Limited Company can be converted into a Private Limited Company.
NO
PARTNERSHIP
Yes. Register with Registration of Firms
Firm can use any name that he likes, but avoiding names already trademarked is advisable
Partners will stand liable for the liabilities of the business
Unlimited liability
2 People
No
Profits get taxed at 30% plus cess and surcharge. Is applicable
if profit exceeds 1 Cr
Only Income Tax must be filed for the income of firm and partners.
Only income tax audit is applicable if the turnover exceeds limit of 2 Cr
es, Partnership can be converted into a Private Limited Company or LLP.
NO
ONE PERSON COMPANY (OPC)
Yes, Ministry of Corporate Affairs registers One Person Companies under the
Companies Act, 2013
Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not
similar to any registered LLP’s
or companies
OPC is a separate legal person in the eyes of law. So, the share holder is not responsible for business liabilities.
Liability is limited to his/her share capital contribution.
1 Person
NA
Profits get taxed at 25% plus cess and surcharge. Is applicable if profit exceeds 1 Cr.
Every financial year OPC
must file Annual Accounts and Annual Return with the Registrar of Companies. Plus, Income Tax must be filed separately
Statutory audit is to be conducted irrespective of business transaction and turnover. Income tax audit is applicable if turnover exceeds 2 Crs.
OPC could be converted into any legal form. But, it depends on the number of promoters, business operations, funding requirements and other factors. Limited Liability Partnership or Private Company is preferred by promoters when seeking
expansion of their OPC
NO
SOLE PROPRIETORSHIP
No legal requirement to do- so.
Promoter can use any name that he likes, but avoiding names already trademarked is advisable.
Promoter will stand liable for the liabilities of the business. Because the business is not considered as a separate legal person/entity
Unlimited liability.
1 Person
NA
Individual income tax slab of the proprietor is the basis of taxation.
Only Income Tax must be filed on the basis on proprietor’s income.
Only income tax audit is applicable if the turnover exceeds limit of 2 Cr.
No
Yes. If turnover exceeds 2 cr
Do I need a Registration?
What type of business names can I keep?
How risky is it for me?
To what extent is each member of the business liable?
Tell me the
minimum membership limit
Is foreign ownership allowed?
How much will I get taxed
What are my annual tax filing norms?
Is Annual Audit Required?
Can I convert my business into any other legal form??
Compulsory Conversion to
Private Limited Company Applicable?
PRIVATE LIMITED
COMPANY
Yes, Ministry of Corporate Affairs registers Private limited company under the
Companies Act, 2013
Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLP’s
or companies
Private Limited Company is a separate legal person in the eyes of law, registered under Companies Act 2013. So, the shareholders are not responsible for business liabilities.
Liability is limited to his/her share capital contribution.
2 People
Yes
Profits get taxed at 25% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
Every financial year Private
Limited Company must file Annual Accounts and Annual Return with the Registrar of Companies. Plus,Income
Tax must be filed separately.
Statutory audit is to be conducted irrespective of business transaction and turnover. Income tax audit is
applicable if turnover exceeds 2 Crs
Yes, Private Limited Company can be converted into a Public Company or LLP.
Even, Public Limited Company can be converted into a Private Limited Company.
NO
LIMITED LIABILITY PARTNERSHIP
Ministry of Corporate Affairs registers an LLP business
under the Limited Liability Partnership Act, 2008.
Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLP’s
or companies
“LLP” is a separate legal person in the eyes of law, registered under LLP Act 2008. So, the partners are not responsible for business’ liabilities.
Liable to the extent of their contribution (in money, in kind or in services extended)
to the LLP.
2 People
Yes
Profits get taxed at 30% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
Every financial year Annual Statement of
Accounts &
Solvency and Annual Return with the Registrar.Plus, Income Tax must be filed separately.
Statutory audit is to be conducted if partners contribution exceeds 25 lakhs or turnover exceeds 40 lakhs. Income tax audit is applicable if turnover exceeds 2 Crs
Yes, Private Limited Company can be converted into a Public Company or LLP. Even, Public Limited Company can be converted into a Private Limited Company.
NO
PARTNERSHIP
Yes. Register with Registration of Firms
Firm can use any name that he likes, but avoiding names already trademarked is advisable
Partners will stand liable for the liabilities of the business
Unlimited liability
2 People
No
Profits get taxed at 30% plus cess and surcharge. Is applicable
if profit exceeds 1 Cr
Only Income Tax must be filed for the income of firm and partners.
Only income tax audit is applicable if the turnover exceeds limit of 2 Cr
es, Partnership can be converted into a Private Limited Company or LLP.
NO
Do I need a Registration?
What type of business names can I keep?
How risky is it for me?
To what extent is each member of the business liable?
Tell me the
minimum membership limit
Is foreign ownership allowed?
How much will I get taxed
What are my annual tax filing norms?
Is Annual Audit Required?
Can I convert my business into any other legal form??
Compulsory Conversion to
Private Limited Company Applicable?
ONE PERSON COMPANY (OPC)
Yes, Ministry of Corporate Affairs registers One Person Companies under the
Companies Act, 2013
Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not
similar to any registered LLP’s
or companies
OPC is a separate legal person in the eyes of law. So, the share holder is not responsible for business liabilities.
Liability is limited to his/her share capital contribution.
1 Person
NA
Profits get taxed at 25% plus cess and surcharge. Is applicable if profit exceeds 1 Cr.
Every financial year OPC
must file Annual Accounts and Annual Return with the Registrar of Companies. Plus, Income Tax must be filed separately
Statutory audit is to be conducted irrespective of business transaction and turnover. Income tax audit is applicable if turnover exceeds 2 Crs.
OPC could be converted into any legal form. But, it depends on the number of promoters, business operations, funding requirements and other factors. Limited Liability Partnership or Private Company is preferred by promoters when seeking
expansion of their OPC
NO
SOLE PROPRIETORSHIP
No legal requirement to do- so.
Promoter can use any name that he likes, but avoiding names already trademarked is advisable.
Promoter will stand liable for the liabilities of the business. Because the business is not considered as a separate legal person/entity
Unlimited liability.
1 Person
NA
Individual income tax slab of the proprietor is the basis of taxation.
Only Income Tax must be filed on the basis on proprietor’s income.
Only income tax audit is applicable if the turnover exceeds limit of 2 Cr.
No
Yes. If turnover exceeds 2 cr
FAQ
What is a Private Limited Company?
It is a privately held business entity incorporated under the Companies Act, limits owner liability to their shares and limits the number of shareholders to 50.
How is it different from a Public Limited Company?
A public limited company can offer its shares to the public and owner liability subject to their shares.
What are the members of a company called?
Members of a company are called Shareholders
How much time is required for private limited company registration in Bangalore?
Incorporation process is fully online now. After submission of scanned documents and approval of the name of the company, incorporation will take about 15 working days.
Is it difficult to get a name of my choice for my company?
Getting a name of your choice is easy if you follow few basic guidelines such as similar names of existing companies or similar sounding names or those containing prohibited words such as Government, Bank, Exchange etc unless otherwise approved by the respective authorities.
Is it necessary for me to obtain a digital certificate for pvt ltd company registration?
Since documents are filed electronically, Digital Certificate (DSC) is mandatory. Once obtained, you can use this DSC for various other purposes where a digital signature is required.
Is it necessary to audit the books of accounts of a company?
It is necessary to appoint an Auditor within 30 days of incorporation of a company. Non-appointment can also attract heavy penalty.
Why should I go for private limited company registration in Bangalore?
Angels, Seed Funds or Venture Capitalists only fund a Private Limited Company, Liability of the shareholders is Limited to their Shareholding. So if there is loss also, shareholders will not suffer beyond their Unpaid Share Capital
What type of business names can I keep?
Firstly submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted need to be in-offensive, legal and not similar to any registered LLP’s or companies.
What are the suffixes that apply to my business name?
“Private Limited Company” (PVT LTD). This suffix should be at the end of the company name.
How risky is it for me?
Private Limited Company is a separate legal person in the eyes of law, registered under Companies Act 2013. So, the Directors or Shareholders are not responsible for business’s liabilities.
To what extent is each member of the business liable?
Director is liable only to the extent of their share capital contribution.
To what extent is each member of the business liable?
Director is liable only to the extent of their share capital contribution.
What is the minimum membership limit for a company?
Person 200 shareholders or members
Is foreign ownership allowed?
Foreigners are allowed to invest via automatic approval route (without red tape) in many of the sectors
Can the business ownership be transferred?
Yes. You can contact our company registration consultants in Bangalore for all support during transfer.
What factors influence the existence or continuance of the business?
Discontinuance of a Private company could happen voluntarily or by regulatory action. Private company has to follow a due process and wait a certain span of time to dissolve. The will of Directors or Shareholders can’t assure fast dissolution.
What are articles of association and memorandum of association?
Article of association contain the purpose of the business and it also lay out duties and right of its members. Memorandum of Association defines the company’s relationship with shareholders and others.
What are the company taxation norms that I need to know before going for pvt ltd company registration?
Profits get taxed at 30% plus surcharge and cess is also applicable.
How many board meetings should I be conducting?
All companies must hold a board meeting once every 3 months. Annual general meetings are expected to be conducted periodically on an annual basis.
What are my Annual tax filing norms?
Every financial year Private companies must file Annual Accounts and Annual Return with the Registrar of Companies. Plus, Income Tax must be filed with Income Tax department.
Can I convert my business into any other legal form?
Yes. Private Limited Company can be converted into a Public company. Even, Public Limited Company can be converted into a Private Limited company. Our company registration consultants in Bangalore can help you with the process.