India is fast developing country where there are lots of aspiring entrepreneurs in every household. The majority of them require registration of their company so as to give legal identity according to the law. They have multiple options for incorporation of the company such as LLP, sole proprietorship, Pvt ltd company and Public company, this all option are preferred by the start-ups. Before starting any business, an entrepreneur should have knowledge about regulations such as New GST Registration
This article will be helpful for you to understand the cost and time involve in private limited company registration in India. For the beginner, it is necessary to understand the meaning of private limited company.
What is Private Limited Company?
Private Limited Company is a personally owned business that can be registered with a minimum 2 and maximum of 200 members. Some of the significant benefits of the private limited company include separate legal identity limited liability, the scope of foreign direct investment, etc.
FEATURES OF PRIVATE LIMITED COMPANY-
- Limitation on members’ liability:
In every private limited company, the liability of members is limited to their shares. So, the members cannot be taken held personally responsible on their meeting the liabilities of companies.
- Never end Succession:
The private limited company is registered is entirely according to company law. Thus, the life of a company is never ending weather members are in the company or not.
- The number of directors:
Only Two directors are required to establish a private limited company. So, that makes it simpler to form this kind of company.
- Different legal identity:
The legal identity is distinct from its members. So, the company can acquire properties and obtain Trademark registration and name.
Factoring Affecting Private Limited Company Registration
The procedure of private limited company is almost the same in every state. However, the cost of registering a private limited company is different in every state. Do you know why? Cost of stamp duty in registration is different because of its turn to make the cost of company registration is different in every state. Furthermore, there are several factors that impact the cost of private limited company registration. Following are certain other factors which affect the cost of registration of company-
- Authorized Share capital of the company.
- Numbers of directors in the company.
- Stamp duty of the state where you are going to the registration of the company.
- Professionals charges are taken such as CS, CA, and Lawyers.
Now we will understand the step by step process of private limited company registration in India. The cost involve in it as well as time is taken at each steps.
Digital Signature Certificate- To start the process of private limited company registration the directors and subscriber to the memorandum of the company are required to have digital signature certificate. To authenticate, the documents in electronic form attaching a DSC is essential.
Cost– The cost of one Digital Signature Certificate is Rs. 500/- Minimum two members are required for the registration of the company so the total cost will be Rs. 1000/-
Time taken– 1 day
Directors Identification Number (DIN)– After Obtaining DSC then the next step is to apply for a director Identification Number. It’s is issued by the Ministry of Corporate Affairs, and it’s is a unique number that is important to obtain by every single person according to act as a director of the company.
Cost– A DIN costs Rs. 500/-. It is government fees. It requires a minimum of two members obtained by the government just like DSC. So, the total cost involves in this step is Rs. 1000/-
Getting Name Approval – If you desire to seek name approval in advance, you can appeal for it through Reserve Unique Name form. In this form, you can provide any two unique company’s name choices. If you require name approval in one shot make sure to decide the name as per the ministry’s guidelines.
Cost– For one-time cost of submitting this form is only Rs 1000/-.
Time Taken– 1-2 days
Filling of Incorporation Form – This is a final and vital step in the process of company registration. The major time and cost involved in this step. The authorized share capital of the company is the major role in this step. You require filling the various forms like AOA, MOA and spice form. By including the authorized share capital amount of your company, you can get the cost details from the Ministry of Corporate Affairs website. If you choose SPICE form registration enter the share capital amount, it will show you the cost for filing AOA, MOA.
Cost- The exact cost will depend upon the case which is available here. We provide an estimated cost for filing the form and obtaining TAN and PAN of the company-
Notary charges and stamp paper for affidavit Rs.200/- approx.
SPICE Form – No costs.
Memorandum of Association- Rs. 2000/-. Stamp duty cost depends upon the state registration.
Article of Association – Rs 300/- approx. Stamp duty depends upon the state of registration.
Permanent Account Number of the company- Rs. 107/- approx.
Collection and Tax deduction account number-Rs. 63/- approx.
One thing you should note that cost is approximately involved in government cost in the PVT LTD Company. That exact cost will be different from state to state.
I hope this Article is helpful to you. By this article, you can understand how you can how much time cost require incorporating Pvt Ltd Company registration.