Register your Private Limited Company through real professionals, without any hidden charges.
You might be wondering why do you need a private limited company and how can you choose a professional to get it registered? We will decode it for you.
A Private Limited Company is a legal business entity privately held by a small group of people. It is registered for pre-defined objects and owned by a group of members called shareholders. It is the most suitable structure for a startup.
Why do you need a private limited company?
If you are planning to launch a startup, you will definitely need a private limited company. Following are the reasons why startups go for a private limited company in India:
- Share Allotment: You may need to allot shares to the Directors, stakeholders and investors, therefore you need to register the private limited company.
- Funding: Startups need to scale up by raising external funding, a private limited company is the most suitable structure for that purpose.
- Limited Liability: In the event of the company being wound-up, no member is bound to contribute anything more than the nominal value of the shares held by him which remains unpaid.
- Perpetual Succession: Irrespective of any change in the board members, the company will be the same entity with the same privileges and immunities, estate, and possessions. The death or insolvency of individual members does not affect the corporate entity, its existence, or continuity. The company will continue to exist indefinitely till it is wound up.
- Transferable Shares: Shares or other interests of any member of a company can be movable property, transferable in the manner provided by the articles of the company. This encourages investment of funds in the shares, so that the members may en-cash them at any time. Thus, it provides liquidity to the investors as shares could be sold on the open market and on the stock exchange. It also provides stability to the company.
- Separate Property: The property of the company is not the property of the shareholders, it is the property of the company itself. The company is the real person in which all the property is vested, and by which it is controlled, managed, and disposed of. In the eyes of law, even a member holding majority of shares or a managing director of a company is held liable for criminal misappropriation of the funds or property of the company, if he unauthorized takes it away and uses it for his personal purposes.
- Capacity to Sue: A company can sue in its name and be sued by others. Neither the members of the board nor the team is liable for anything wrong.
- Flexibility and Autonomy: The Company has the autonomy and independence to form its own policies and implement them through Memorandum and Articles of Association.
- Employee Stock Options (ESOPs): As a startup, attracting talent and building a strong team is essential for the success of the business. Markets are competitive and you need all the help that you can get. A private limited company allows you to create ESOPs to attract good talent and keep your team motivated. ESOPs, are shares that a company issues to its employees at a discounted price. This gives startups, registered as private limited companies, a small edge over other startups in the same sphere.
- No Minimum Capital Requirement: Earlier, a lot of new businesses would not opt to register a private limited company due to the requirement of a minimum paid-up capital of Rs.1 lakh. However, with that requirement waived off, an increasing number of startups have started registering companies instead of other business entities.
What are the requirements for Company Registration?
- Minimum 2 Shareholders
- One of the Directors must be an Indian resident
- DSC (Digital Signature Certificate) for 2 Promoters & 1 witness
- Minimum 2 Directors
- Minimum Authorised Share Capital 100,000 (INR One Lakh)
- The directors and shareholders can be the same person
- DIN (Director Identification Number) for all Directors
Is there any package for Company Registration and what is included?
StartupLanes has a company registration package that has the following inclusions:
- DIN for 2 Directors: DIN Number or Director Identification Number is a unique 8 digit number that is required for any existing or proposed Director of a Company. Director Identification Number (DIN) has been introduced in India by way of the Companies Amendment Act, 2006.
- Digital Signature Certificates for 2 Promoters & 1 witness: Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. A digital certificate can be presented electronically to prove one’s identity, to access information or services on the Internet, or to sign certain documents digitally.
- Company Name Approval: You have to get the approval of a unique company name that is different from others and doesn’t resemble any existing brand or company name. This is a complex process that is handled easily by our professionals.
- MOA: The memorandum of association of a company is an important corporate document in India. It is often simply referred to as the memorandum. In India, it has to be filed with the Registrar of Companies during the process of incorporating a company. It is the document that regulates the company’s external affairs and complements the articles of association which cover the company’s internal constitution. It contains the fundamental conditions under which the company is allowed to operate.
- AOA: The Articles of Association (AOA) is a document that defines the purpose of a company and specifies the regulations for its operations. The document outlines how tasks should be accomplished within an organization, including the preparation and management of financial records, and the process of director appointments.
- Incorporation Certificate: The certificate of incorporation is conclusive evidence that the requirements of the Companies Act as to registration have been complied with and that the company is duly registered under the Act. The certificate will mention the name and registration number of the company. the date of incorporation.
- Company PAN Card: Any Company incorporated in India and doing business here will have to mandatorily get a PAN Card. Any form of business that is generating an income will also be required to get a PAN. The PAN is to be quoted during all the financial transactions of the Company as well as in the invoices and other registrations.
- Company TAN/TDS Number: Tax Deduction Account Number or Tax Collection Account Number is a 10 -digit alpha-numeric number issued by the Income-tax Department. TAN is to be obtained by all entities who are responsible for deducting tax at source (TDS) or who are required to collect tax at source (TCS).
- Bank Account Opening Documents: We will provide you all the documents required for the opening of the bank account that we have. We will assist you in the entire process.
What is the fee for Company Registration?
The fee for the Private Limited Company registration is INR 12500. This includes:
- All the above services are mentioned in the last section.
- Chartered Accountant (CA) Fee
- Company Secretary (CS) Fee
- e-Stamp Duty for INC 2/INC 7/INC 27/MoA/AoA/SH-7 (except few states like MP, Punjab, etc. where the fee is more than normal).
- Drafting fee for the Company
- The filing fee for the Company
How StartupLanes is different from e-filing sites?
We have a team of CA, CS, Lawyers, and Compliance Managers to do the work specifically for the client, instead of just changing the names like e-filing sites do. We will minimize the risk of penalties and statutory compliance failures. The most important difference is that we pick up calls. We have real people to assist you. Check online reviews of e-filing sites and then you will get to know how important it is to have a customer support system.
But e-filing companies are charging too less?
OK, Let’s compare case to case:
- xxxWala: They are advertising Rs. 99. After you reach their landing page it is mentioned that the fee is Rs. 6299 + Government fee + DSC + Drafting fee + Name approval that comes out to be Rs. 16299 total + 18% GST.
- xxxWiz: They advertise Rs. 8999 all inclusive. After you fill up the form, the prices comes out to be Rs. 16999 + 18% GST as they have name approval + DSC + DIN charges + Govt. fee extra for most of the States.
- xxxSearch: They advertise Rs. 499. Many people have reported that the final fee comes out to be more than Rs. 20k + 18% GST.
- xxxFinings They have mentioned Rs. 7228 inclusive of stamp duty, however if you check there is a start (*) mark with the stamp duty. This is calculated for the State like Jharkhand where the stamp duty is just Rs. 5. This will turn out to be more than Rs. 20k + 18% GST later.
What is required after the registration of the Company?
You will need to declare the Commencement of Business after the registration of your private limited company.
It is a Declaration to be issued by the directors within 180 days of incorporation of company stating that the subscribers to the Memorandum of the company has paid the value of shares so agreed by them, along with a verification of registered office address of the company. This declaration need to be filed along with proof of subscription money received by the company in form 20A with the Registrar of Companies.
The fee for Commencement is Rs. 1500 + GST including the Govt. Fee.
What about Accounting, GST Returns & Annual RoC Compliances?
We charge you Rs. 12500 + GST per year for each of these works. This costs you less than Rs. 1042 per month each. This is applicable for companies with annual revenue of INR 40 lakh or less.
You pay Rs. 3125 + GST per month (billed yearly) for filing your GST returns, Accounting including the journal entries in Tally, Trading A/c, Profit and Loss, and Balance Sheet Preparation. Also, the yearly compliances including the audit is included in this.
I’m Feeling Excited.
Please fill up this simple form to get a call from our team: Yes, Call Me! I want the Services.