Private Limited Company
This is the most suitable for startups looking for Investor Funding and Growing Businesses.
Our Team at Bizzonns consists of qualified and vast experienced personnel, who after attending to your requirements, will recommend you the best suitable form for your business.
Professional Charges start at Rs 4,999/- Onwards
100% Online, Easy & All India Services
12+ Years Experienced Team of Professionals
Total Number of Served Clients
Availability in Major Indian Cities
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Overview
Private Limited is a popular and oldest format of business in India. It is the most preferred format for start-ups as the regulation and law of private limited safeguards the interests of promoters, individuals, and the business connected with the Company, directly or indirectly. Earlier it was regulated through the Companies Act 1956 and now the Companies Act 2013 is in practice. Private Limited is a reliable and most favored format among angel investors, capital ventures, and other forms of investors.
While opting for a business format, entrepreneurs find it difficult to choose the best suitable format as per their requirement, whether they should go for Proprietorship, Partnership, LLP, or Company. The fact is, that every business form has its own advantages and disadvantages. Each business form is suitable in its own way, depending upon the requirements of the business and other factors. The first step is to opt for the most efficient and suitable format before establishing and executing any business plan.
Benefits Of Private Limited Company
Limited Liability
In a Limited Liability Partnership (LLP), partners are only liable for debts up to their capital contributions, protecting personal assets. One partner is not accountable for another's actions, unlike in traditional partnerships.
Separate Legal Entity
An LLP Is an artificial person created by law. It is governed under the LLP Act, 2008. Thus, it creates a separate legal identity of itself, from its partners, and provides immunity to the owner’s personal property or assets in case of bankruptcy.
Ease in Fund Raising
Investors prefer Private Limited Companies for investing their money, due to high transparency, and ease in transfer of ownership, as compared to others. Private limited can raise funds through Debt and Equity both from investors and financial institutions.
Easy to Incorporate
With the launch of MCA Version 3, now company formation is easy and fast in India. It is 100% online, has Basic KYC Documentation, and with minimum time duration. Closure of the company is also easy and online with minimum documentation.
Documentation For Private Limited Company
Partners
PAN Card of each Director & Shareholder
Address Proof (Driving License, Passport, Aadhar Card)
Latest Residence Proof (Electricity Bill, Water Bill, Gas Bill, and Bank Statement)
Passport Size Photograph of each Director & Shareholder
Office Premises
Longitude and latitude of office address
Latest Electricity Bill, Gas Bill, Water Bill and Mobile postpaid bill (Any one).
No Objection Certificate (NOC) from Office address owner
Process
ExploreDigital Signature Certificate (DSC)
1
Persons who will be acting as a director and shareholders of the proposed company, need to apply for DSC. It is required to sign and validate all the documents.
Name Approval
2
Proposed name needs to be approved by ROC. ROC will check the name availability on different parameters and then will issue the approval letter.
Company Incorporation
3
Once the name is approved, the application needs to be made for the formation of the Company in Form Spice+ and the same is verified by a professional CA, CS or CMA.
Drafting of MOA & AOA
4
Along with Spice+, the MOA & AOA of the Company also need to be filed. A Memorandum of Association (MOA) defines the fundamentals of the company and the Articles of Association (AOA) contains the rules & regulations of the Company.
Incorporation Certificate
5
After verification of Spice+, Roc will issue the Certificate of Incorporation. Incorporation Certificate gets issued within 3-4 working days.
PAN & TAN Allotment
6
With a certificate of incorporation pan and tan allotment will be made and a soft copy of pan and tan will be received by mail from the Department.
Opening Bank Current Account
7
After receiving COI and other relevant documents, Private Limited can open the bank’s current account in the name of the Company.
Compliances
First-time Compliance
After company incorporation, it needs to comply with the following list of Compliances with MCA
Commencement of Business (INC 20A) - This needs to be filed within 180 days of Company Formation, once the Bank account is opened and the share application money is trans-ferred into that account.
Share Certificate Franking and Stamping – Company needs to issue a share certificate to all the shareholders and needs to be stamped.
Auditor Appointment – This Needs to be done within 30 days of Company Formation after holding an Annual General Meeting.
Yearly Compliances
All company Pvt ltd, OPC, Public limited are bound to file ROC and Income Tax compliance after end of each financial year i.e 31st March within prescribed timeline mentioned in Income tax and companies act. Major compliance forms details and due dates are mentioned below:-
| Form | Due Date | Particulars |
|---|---|---|
| ADT 1 | Within 15 days of AGM | For appointment of company auditor (CA). |
| AOC 4 | Within 30 days of AGM | For financial report to ROC (Balance sheet and Profit/loss statement). |
| MGT 7 | Within 60 days of AGM | For annual reporting of company to ROC related to share holders and other matters of company. |
| DPT 3 | 30th June | To report existing loan on Company. |
| DIR 3 | 30th September | For Director KYC. |
| ITR | 30th September | For Income tax return of the company. |
Note: Annual general meeting (AGM) need to be held between company officials and Shareholders by and before 6 month of the end of each Financial Year.
Comparision with other format
COMPARISON WITH OTHER FORMATS TO CHOOSE THE BEST SUITABLE FOR YOUR BUSINESS
LLP vs. Private Limited Company vs. Partnership Firm vs. OPC Company vs. Proprietorship Firm
| Proprietorship Firm | Partnership Firm | Limited Liability Partnership | Private Limited Company | One Person Company | ||
|---|---|---|---|---|---|---|
| Governed by | Not Governed by any specific act | Indian Partnership Act | LLP Act, 2008 | Companies Act, 2013 | Companies Act, 2013 | |
| Recommended | Sole Promoter | Small Business | Small Business | Start-ups and growing business | Sole Promoter | |
| Registration | NA | Optional | Mandatory | Mandatory | Mandatory | |
| Members Liability | Unlimited | Unlimited | Limited | Limited | Limited | |
| Separate Legal Entity | No | No | Yes | Yes | Yes | |
| Number of Members | Only 1 | 2 – 50 | 2 – Unlimited | 2 – 200 | Only 1 | |
| Transferability | Non-Transferable | Non-Transferable | Transferable, if ROF registered | Transferable | Transferable | |
| Compliance | Low | Low | Moderate | High | High | |
| Statutory Audit | No | No | Based on Turnover | Applicable | Applicable | |
| Taxability | Low | High | High | Moderate | Moderate |
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