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Company registration

Register your private limited company through real professionals, without any private fees.

You may be wondering why you need a private limited company and how you can choose a professional to register it. We will decode it for you.

A private limited company is a legal business entity that is privately owned by a small group of people. It is registered for pre-defined objects and belongs to a group of members called shareholders. This is the most suitable design for startups.

Why do you need a private limited company?

If you are thinking of starting a startup, you will definitely need a private limited company. The reasons why startups are used for private limited company registration in India are as follows.

1. Share allotment: You may need to allot shares to directors, shareholders and investors, so you need to register a private limited company.

2. Funding: Startups need to raise external funding, a private limited company is the most appropriate structure for that purpose.

3. LIMITED LIABILITY: In the event of closing the Company, no member is obliged to contribute anything beyond the nominal value of the shares held by him which remains unpaid.

4. Sustainable Succession: In the event of any change in the board members, the company will be an equal entity with equal privileges and immunity, assets and liabilities. The death or bankruptcy of individual members does not affect corporate existence, its existence or continuity. The company will exist indefinitely until it is closing.

5. Transferable Shares: Shares or other interests of any member of the Company may be movable assets, transferable in the manner provided by the Company's articles. This encourages the investment of funds in shares so that members can cash them in at any time. Thus, it provides liquidity to investors as shares can be sold on the open market and on stock exchanges. It also provides stability to the company.

6. Individual Assets: The assets of the company are not the assets of the shareholders, they are the assets of the company. The company is the real person in which all the assets are vested and through which it is controlled, managed and disposed of. By law, a majority shareholder member or managing director of a company is liable for criminal misappropriation of company funds or assets, if he unauthorisedly withdraws it and uses it for his personal purposes.

7. Ability to sue: A company can sue in its name and sue on behalf of others. Board members or teams are not responsible for any wrongdoing.

8. Flexibility and Autonomy: The Company has the autonomy and freedom to formulate its own policies and to implement them through Memorandums and Articles of Association.

9. Employee Stock Options (ESOP): As a startup, attracting talent and building a strong team is essential for business success. The markets are competitive and you need all the help you can get. A private limited company allows you to create ESOPs to attract good talent and keep your team motivated. ESOPs share that a company issues to its employees at a discounted price. This gives startups, registered as private limited companies, a small edge compared to other startups in the same sector.

10. No Minimum Capital Required: Previously, many new businesses would not choose to register with a private limited company as a minimum paid-up capital of Rs 1 lakh is required. However, by waiving this requirement, a growing number of startups have begun to register companies instead of other business entities.

What are the requirements for company registration?

1. At least 2 shareholders

2. One of the directors must be an Indian resident

3. DSC (Digital Signature Certificate) for 2 promoters

4. At least 2 directors

5. Minimum authorized share capital 100,000 (INR one lakh)

6. Directors and shareholders may be the same person

7. DIN (Director Identification Number) for all Directors

Is there any package for company registration and what does it include?

Alliance Tax Experts has a company registration package that includes the following:

·        2 DIN for Directors: The DIN number or Director Identification Number is a unique 8-digit number required for any existing or proposed director of the company. The Director Identification Number (DIN) has been introduced in India by the Companies Reform Act, 2006.

·        Digital signature certificates for 2 promoters:-  Digital Signature Certificates (DSC) The physical equivalent of a document or document (it is an electronic format). A digital certificate can be submitted electronically to prove one's identity, to access information or services on the Internet, or to digitally sign certain documents.

·        Company Name Recognition: You need to recognize the name of a unique company that is different from others and not like any existing brand or company name. This is a complex process that is easily handled by our professionals.

·        MOA: The company's Memorandum of Association is an important corporate document in India. This is often referred to as a statement. In India, it has to be submitted to the Registrar of Companies during the process of incorporation. It is the document that governs the external affairs of the company and complements the archives covering the internal constitution of the company. It contains the basic conditions that allow a company to operate.

·        AOA: Articles of association (AOA) is a document that defines the purpose of a company and specifies rules for its operation. The document sets out how tasks should be completed in the organization, including the preparation and management of financial records and the director appointment process.

·        Incorporation Certificate: The incorporation certificate is conclusive proof that the requirements of the Companies Act have been complied with for registration and the company is registered in accordance with the law. The certificate will state the name of the company and the registration number. Date of Corporation.

·        Company PAN Card: Any company located in India and doing business here is required to get a PAN card. Any type of income-generating business also needs to take a pan. The PAN is to be mentioned during all financial transactions of the company as well as during receipts and other registrations.

·        Company TAN / TDS Number: Tax deduction account number or tax collection account number is a 10 digit alpha-digit number issued by the Income Tax Department. TAN must be obtained from all sources who are responsible for deducting the resource tax (TDS) or who must collect the resource tax (TCS).

·        Bank Account Opening Documents: We will provide you with all the documents required to open a bank account. We will assist you throughout the process.

What is the fee for company registration?

The fee for the registration of a private limited company is Rs. 12,500.

These include:

•All the above services are mentioned in the last section.

·        Chartered Accountant (CA) Fee

·        Company Secretary (CS) Fees

·        E-stamp duty for INC 2 / INC 7 / INC 27 / MoA / AoA / SH-7

·        For company documents draft charges

·        The filing fee for the company

·        PF/ESIC Number

·        Rubber Stamp

How is Alliance Tax Experts different from e-filing sites?

We have a team of CAs, CSs, attorneys and compliance managers who work exclusively for clients rather than changing names like e-filing sites. We will reduce penalties and the risk of statutory compliance failing.

What is required after registration of the company?

After registering your private limited company you will have to announce the start of the business.

Within 180 days of the registration of the Company, the Director has issued a declaration stating that the customers of the Memorandum of the Company have paid the value of the shares agreed with them along with the verification of the registered office address of the Company. This declaration must be submitted to the Registrar of Companies in Form 20A along with proof of the amount of subscription received by the Company.

The starting fee is Rs. 1500 + GST ​​fee with the government.

What is required after registration of the company?

After registering your private limited company you will have to announce the start of the business.

Within 180 days of the registration of the Company, the Director has issued a declaration stating that the customers of the Memorandum of the Company have paid the value of the shares agreed with them along with the verification of the registered office address of the Company. This declaration must be submitted to the Registrar of Companies in Form 20A along with proof of the amount of subscription received by the Company.

The commencement fee is Rs. 1500 + GST ​(​fee with the government.)

What about accounts, GST returns and annual ROC compliance?

We ask you for Rs. 18500 + GST ​​per year for each of these works. It costs you Rs. 1542 per month. This applies to companies with an annual income of Rs 20 lakh or less.

You pay Rs. 3125+ including gst per month (annual bill), for filing gst returns, accounting entries, journal entries in Tally, preparation of trading A/C, profit and loss statement and balance sheet & ROC related documents. Also, annual compliance with the internal audit is included.( an annual income of Rs 40 lakh or less)

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