Registration of PVT  LTD Company

If you're looking to start a business, registering it as a private limited company (Pvt. Ltd.) is an excellent option. A Pvt. Ltd. company is a separate legal entity that limits the liability of its shareholders. It offers several advantages, such as limited liability, easy access to funding, and credibility, among others.

In this blog, we will discuss the steps involved in the registration of a Pvt. Ltd. company and the fees associated with it.

Steps for Pvt Ltd Company Registration

Obtain Digital Signature Certificate (DSC)

The first step in the registration of a Pvt. Ltd. company is to obtain a Digital Signature Certificate (DSC) for the directors of the company. A DSC is an electronic signature that is used to sign registration documents online. You can obtain a DSC from any government-approved agency.

Obtain Director Identification Number (DIN)

The next step is to obtain a Director Identification Number (DIN) for the directors of the company. A DIN is a unique identification number that is allotted to each director of a company. You can apply for a DIN on the Ministry of Corporate Affairs (MCA) website.

Apply for Name Approval

After obtaining the DSC and DIN, the next step is to apply for name approval. You need to provide at least six name options for your company, and the MCA will approve one based on availability and compliance with naming guidelines.

Prepare the MOA and AOA

The next step is to prepare the Memorandum of Association (MOA) and Articles of Association (AOA) of the company. The MOA is a document that outlines the company's objectives, while the AOA is a document that outlines the company's internal regulations.

Get Incorporation Documents Stamped

After preparing the MOA and AOA, you need to get them stamped by the Registrar of Companies (ROC) in the state where your company is registered. Stamp duty is a state-level tax, and the amount varies from state to state.

File Incorporation Documents

The final step is to file the incorporation documents with the ROC. The documents required for Pvt. Ltd. company registration include:

• Form SPICe (INC-32) - for incorporation of the company
• Form INC-33 - for e-memorandum of association
• Form INC-34 - for e-articles of association
• PAN Card
• Address Proof (Aadhaar Card, Voter ID, Passport, Driving License)
• Digital Signature Certificate
• Photograph of the Directors

After filing the incorporation documents and paying the government fees, your company will be registered, and you will receive a Certificate of Incorporation (COI) from the ROC.

Pvt Ltd Company Registration Fees

The fees for Pvt. Ltd. company registration in India vary based on the authorized capital of the company. The authorized capital is the maximum amount of capital that a company is authorized to raise through the issuance of shares. The fees for Pvt. Ltd. company registration are as follows:

1. For companies with an authorized capital of up to Rs. 1 lakh, the registration fee is Rs. 2,000.
2. For companies with an authorized capital of Rs. 1 lakh to Rs. 5 lakh, the registration fee is Rs. 3,000.
3. For companies with an authorized capital of Rs. 5 lakhs to Rs. 10 lakhs, the registration fee is Rs. 4,000.
4. For companies with an authorized capital of Rs. 10 lakhs to Rs. 50 lakhs, the registration fee is Rs. 5,000.
5. For companies with an authorized capital of Rs. 50 lakhs to Rs. 1 crore, and the registration fee is Rs. 6,000.
6. For companies with an authorized capital of more than Rs. 1 crore, the registration fee is Rs. 7,000.

In addition to the registration fees, you will also need to pay stamp duty on the MOA and AOA. The stamp duty varies from state to state and is based on the authorized capital of the company.

Other Costs Involved

Apart from the registration fees, there are other costs involved in the Pvt. Ltd. company registration process, such as legal fees, professional fees, and government charges. These costs can vary depending on the location of the company and the complexity of the registration process.

1. Legal Fees: You may need to engage the services of a lawyer or a legal firm to assist you with the registration process. The legal fees can vary depending on the scope of work and the experience of the lawyer.
2. Professional Fees: You may need to engage the services of a professional, such as a chartered accountant or a company secretary, to assist you with the registration process. Professional fees can vary depending on the scope of work and the professional's experience.
3. Government Charges: In addition to the registration fees, there are other government charges such as the cost of obtaining a DSC, DIN, and name approval, among others.

Conclusion

Registering a Pvt. Ltd. company is a crucial step in starting a business. It offers several benefits, such as limited liability, easy access to funding, and credibility, among others. The process of Pvt. Ltd. company registration involves obtaining a DSC and DIN, applying for name approval, preparing the MOA and AOA, getting the incorporation documents stamped, and filing the incorporation documents with the ROC. The fees for Pvt. Ltd. company registration vary based on the authorized capital of the company, and there are other costs involved such as legal fees, professional fees, and government charges. It is advisable to engage the services of a professional to assist you with the registration process to ensure compliance with legal requirements and avoid any errors or delays.

Santosh Dantani

To start a new business is easy, but to make it successful is difficult . So For success, choose the best." Be compliant and proactive from the beginning and choose NEUSOURCE as your guidance partner.