Private limited company: Documents required for registration

Last Updated at: February 11, 2020
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Private limited company

A private limited company is an organisation that has a minimum of two shareholders, and a maximum of two hundred, with a minimum of two directors. A private limited company with one shareholder can invite friends or family members to join the organisation as the second shareholder. In addition, a private limited company also has limited liability; where a shareholder’s liability extends to the amount invested by him/her in the shares of the company.

Private limited company – advantages

-Raising Funds: Venture capitalists and angel investors are more inclined to invest in private limited companies than any other business entities. 

-Stock Options: Private companies can issue stock options or ownership to company shares to employees or new shareholders, and thereby a stake in the business.

-Scalability: With investors and stock options, private limited companies can scale quickly and expand wider than other types of businesses.

-Loans & Borrowings: Banks and financial institutions are more inclined to provide loans to private limited companies, over sole proprietorships.

Requirements for registering a private limited company

  1. DSC (Digital Signature Certificate): It is an e-document that validates the identity of an individual or an organization. A DSC is used to register a company online, as it is used to verify the identity. It takes a company approximately two days to register a DSC, before being able to use it.
  2. DIN (Director Identification Number): It is a unique identification number given to an existing or a new director of any company. It takes approximately one day to acquire a DIN for an existing or a new Director.

Naming the company:

While registering or incorporating a private company, the business can register under one name and operate as a brand on another. In either case, the name, the logo, etc. has to be trademarked so no other business can replicate or use the name of the existing business (without legal and financial ramifications). The brand name refers to a business name under which a company produces or markets its products. For this reason, a company is going to be far better recognized by its ‘brand’ name or ‘marketing’ name than its name of incorporation.

Register Your Company

Documents required for registering a private company

These documents pertain to proof of;

  1. Identity: For proof of identity, respective shareholders will have to submit copies of their PAN cards and passports (especially for NRIs or foreign nationals) at the time of registration.
  2. Address: For proof of address, respective shareholders are required to submit government-issued IDs, such as a driving license, voter’s id or a passport.
  3. Residence: For residence proof, respective shareholders are required to submit the latest bank statements, electricity/gas/telephone bills.

Additional documents

Apart from documents that verify identity, there are;

  • Passport-size photographs
  • Specimen signature on a blank document (for company directors)
  • Memorandum of association that explains all the basic information about the company to register it.
  • Articles of associations that explains that rules, responsibilities, and objective of the company
  • Registration fee and stamp duty, to finally register with the State Government (where the company is located) as an operational and fully functional business entity.The certificate of incorporation is issued from the respective State Government. The certificate of incorporation is used to apply for company PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number).

Private limited company: Documents required for registration

503

A private limited company is an organisation that has a minimum of two shareholders, and a maximum of two hundred, with a minimum of two directors. A private limited company with one shareholder can invite friends or family members to join the organisation as the second shareholder. In addition, a private limited company also has limited liability; where a shareholder’s liability extends to the amount invested by him/her in the shares of the company.

Private limited company – advantages

-Raising Funds: Venture capitalists and angel investors are more inclined to invest in private limited companies than any other business entities. 

-Stock Options: Private companies can issue stock options or ownership to company shares to employees or new shareholders, and thereby a stake in the business.

-Scalability: With investors and stock options, private limited companies can scale quickly and expand wider than other types of businesses.

-Loans & Borrowings: Banks and financial institutions are more inclined to provide loans to private limited companies, over sole proprietorships.

Requirements for registering a private limited company

  1. DSC (Digital Signature Certificate): It is an e-document that validates the identity of an individual or an organization. A DSC is used to register a company online, as it is used to verify the identity. It takes a company approximately two days to register a DSC, before being able to use it.
  2. DIN (Director Identification Number): It is a unique identification number given to an existing or a new director of any company. It takes approximately one day to acquire a DIN for an existing or a new Director.

Naming the company:

While registering or incorporating a private company, the business can register under one name and operate as a brand on another. In either case, the name, the logo, etc. has to be trademarked so no other business can replicate or use the name of the existing business (without legal and financial ramifications). The brand name refers to a business name under which a company produces or markets its products. For this reason, a company is going to be far better recognized by its ‘brand’ name or ‘marketing’ name than its name of incorporation.

Register Your Company

Documents required for registering a private company

These documents pertain to proof of;

  1. Identity: For proof of identity, respective shareholders will have to submit copies of their PAN cards and passports (especially for NRIs or foreign nationals) at the time of registration.
  2. Address: For proof of address, respective shareholders are required to submit government-issued IDs, such as a driving license, voter’s id or a passport.
  3. Residence: For residence proof, respective shareholders are required to submit the latest bank statements, electricity/gas/telephone bills.

Additional documents

Apart from documents that verify identity, there are;

  • Passport-size photographs
  • Specimen signature on a blank document (for company directors)
  • Memorandum of association that explains all the basic information about the company to register it.
  • Articles of associations that explains that rules, responsibilities, and objective of the company
  • Registration fee and stamp duty, to finally register with the State Government (where the company is located) as an operational and fully functional business entity.The certificate of incorporation is issued from the respective State Government. The certificate of incorporation is used to apply for company PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number).

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