What is the Cost to Register a Private Limited Company in India?

Nov 28, 2023

What are the Expenses for Registering a Private Limited Company in India?

Unlock The Secrets Of Registering A Private Limited Company! Discover Everything You Need To Know About The Cost Involved In Setting Up Your Dream Venture. Our Blog On Kanakkupillai Has Got You Covered! This blog is about the Cost of registering a Private Limited Company in India.

1. Step-by-Step Procedure to Register a Private Limited Company in India:

Obtain Digital Signature Certificate (DSC): All directors need a DSC.
Obtain Director Identification Number (DIN): Apply online with the required documents.
Name Approval: Apply for the company name through the RUN (Reserve Unique Name) service.
Drafting Memorandum of Association (MOA) and Articles of Association (AOA): Create these documents.
Filing Incorporation Documents: Submit the documents to the Ministry of Corporate Affairs (MCA).
Payment of Fees: Pay the prescribed fees for incorporation.
Certificate of Incorporation: Once approved, you’ll receive the certificate.
PAN and TAN Application: Apply for Permanent Account Number (PAN) and Tax Deduction and Collection Number (TAN).
Opening a Bank Account: Open a bank account in the company’s name.
GST Registration: Register for Goods and Services Tax (GST) if applicable.

2. Documents Required to Registering a Private Limited Company:

Passport-sized photos of directors.
Proof of identity and address (Aadhar, Passport, Voter ID, etc.).
Proof of registered office address.
No-Objection Certificate (NOC) from the property owner.
Utility bills of the registered office.

3. Benefits of Registering a Private Limited Company:

Limited Liability: Personal assets are protected.
Separate Legal Entity: Distinct from its owners.
Perpetual Succession: Continuity even with changes in ownership.
Easy Transferability: Shares can be transferred.
Access to Funding: Easier to raise capital.
Credibility and Trust: Enhances business reputation.

FAQs: Registering a Private Limited Company:

1. What is the cost of registering a private limited company in India?

Prices vary based on services, starting from INR 10,000.

2. How long does it take to write a private limited company?

It usually takes 10-15 days.

3. Is it possible for a foreign national to serve as a director in a private limited company?

Yes, with certain conditions.

4. Is a physical office necessary for registration?

Yes, a registered office is required.

5. What is the minimum capital requirement?

There is no minimum capital requirement.

6. How often are annual filings required?

Annual filings are required once a year.

7. Can a private limited company issue shares?

Yes, shares can be issued to raise capital.

8. Are there tax benefits for private limited companies?

Yes, there are tax advantages.

9. Can a private limited company be converted to a public company?

Yes, with regulatory approvals.

10. What is the role of a director in a private limited company?

Directors manage the company’s affairs.

11. Is it mandatory to have a company secretary?

It’s not compulsory but recommended.

12. How can I change the company’s registered office?

By submitting the required forms to the Registrar of Companies (RoC)

13. What is the penalty for non-compliance?

Penalties vary; timely compliance is crucial.

14. Can a private limited company engage in multiple businesses?

Yes, it can conduct various activities.

15. Is GST registration mandatory?

If turnover exceeds the threshold, GST registration is compulsory.

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