Why Choose a Private Limited Company?

A Private Limited Company is one of the most popular business structures in India. It offers limited liability to its shareholders, meaning personal assets are protected in case the business faces financial difficulties. Additionally, a PLC is more credible in the eyes of investors, banks, and clients, making it easier to raise capital and grow your business.

Key Benefits of Registering a Private Limited Company

Limited Liability: Shareholders’ liabilities are limited to the amount they invested in the company, protecting personal assets from business risks.

Perpetual Succession: The company continues to exist even if the owners change, ensuring stability and continuity.

Easy Access to Funding: Banks and investors are more willing to fund a PLC due to its structured governance and credibility.

Tax Benefits: PLCs can avail of various tax deductions under the Income Tax Act.

Professional Image: A registered PLC enhances your business’s reputation and can attract more customers and partners.

Step-by-Step Guide to PVT Company Registration

Step 1: Obtain a Digital Signature Certificate (DSC)

The first step in the company registration process is to obtain a Digital Signature Certificate (DSC) for the proposed directors of the company. The DSC is required to file online forms on the Ministry of Corporate Affairs (MCA) portal. It ensures that the documents submitted are authentic and secure.

How to Apply: You can apply for a DSC through authorized certifying agencies. It typically requires submitting identity proof, address proof, and a passport-sized photograph.

Step 2: Apply for Director Identification Number (DIN)

A Director Identification Number (DIN) is a unique identification number assigned to each director of the company. It is mandatory for anyone intending to become a director in a company.

How to Apply: The DIN can be applied for through the SPICe+ form (discussed later) or separately through the DIR-3 form. You’ll need to provide personal details and proof of identity.

Step 3: Name Reservation through SPICe+ (Part A)

The next step is to select and reserve a name for your company. The name must be unique and adhere to the naming guidelines set by the MCA.

SPICe+ Form: The SPICe+ (Simplified Proforma for Incorporating a Company Electronically Plus) is an integrated web form used for company registration. Part A of the SPICe+ form allows you to apply for a name reservation.

Tips for Name Selection: Ensure the name reflects the business’s nature and is not similar to any existing company name. The name should also include “Private Limited” at the end.

Step 4: Drafting of Memorandum of Association (MOA) and Articles of Association (AOA)

The Memorandum of Association (MOA) outlines the objectives of the company, while the Articles of Association (AOA) detail the rules and regulations for managing the company. These documents are crucial for the registration process.

MOA and AOA Preparation: These documents can be drafted by legal professionals or through company registration services in Delhi. The MOA and AOA need to be signed by the subscribers (shareholders) in the presence of a witness.

Step 5: Filing the SPICe+ (Part B) Form

Once the name is approved, you can proceed with the incorporation of the company by filing Part B of the SPICe+ form. This form includes details about the company, directors, subscribers, and registered office address.

Documents Required:

Identity proof and address proof of directors and shareholders

PAN card of directors and shareholders

Proof of registered office address (e.g., utility bill, rent agreement)

Copy of the MOA and AOA

Submission: The SPICe+ form, along with the required documents, must be submitted online on the MCA portal. The form also includes options for applying for PAN, TAN, and EPFO/ESIC registrations.

Step 6: Payment of Stamp Duty and Registration Fees

After submitting the SPICe+ form, you’ll need to pay the stamp duty and registration fees. The amount varies based on the authorized capital of the company and the state in which it is registered.

Payment Process: Payment can be made online through the MCA portal using net banking, credit/debit card, or other available payment methods.

Step 7: Issuance of Certificate of Incorporation

Once the forms are processed and verified, the Registrar of Companies (ROC) will issue a Certificate of Incorporation (COI). This certificate is proof that the company has been legally incorporated.

Incorporation Certificate: The COI contains the Company Identification Number (CIN), date of incorporation, and company name. It marks the official birth of your Private Limited Company in Delhi.

Company Registration Services in Delhi

The process of Private Limited Company Registration in Delhi can be complex, especially for first-time entrepreneurs. Fortunately, several professional services specialize in simplifying this process:

Legal Firms: Many law firms in Delhi offer end-to-end company registration services, from name approval to obtaining the Certificate of Incorporation.

Chartered Accountants (CAs): CAs can assist with the financial aspects of company registration, including PAN, TAN, and GST registration, along with compliance-related services.

Online Company Registration Services: Numerous online platforms provide company registration services in Delhi, offering convenience and expertise at competitive rates. These platforms guide you through the entire process, ensuring that all legal requirements are met.

Consultants: Business consultants in Delhi often provide company registration as part of their services, along with advice on structuring your business, tax planning, and compliance management.

Conclusion

Registering a Private Limited Company in Delhi is a significant step towards establishing a credible and successful business. By following the steps outlined in this guide and leveraging professional company registration services in Delhi, you can navigate the process with confidence and ease. The benefits of a Private Limited Company—limited liability, ease of raising capital, and a professional image—make it an ideal choice for entrepreneurs looking to thrive in Delhi’s competitive business environment.

As you embark on this journey, remember that meticulous planning and adherence to legal requirements are key to smooth and successful Private Limited Company Registration in Delhi. With the right approach, your business can be up and running in no time, ready to make its mark in the bustling capital of India.

Overview

Once you complete private limited company registration, you need to comply with all regulations to ensure smooth daily operations. The Ministry of Corporate Affairs (MCA) introduced One-day Company Incorporation with SPICe , greatly simplifying the process of online company registration. Books of accounts must be audited and kept, irrespective of size, fame, or type of business. An annual procedure which is a part of a company’s compliance needs is the Auditing Process.

The following is a list of compliance requirements in addition to the auditing process, to comply with the laws set by MCA.

Compliance requirements

Forms

• ADT-1 Form – For Appointment of Auditor

Within 1 month of the private limited company registration and incorporation, the company must appoint an auditor. The auditor will have a 5-year term.

• MGT-7 Form –  For Annual Return Filing

Within 60 days after conducting the Annual General Meeting, a private limited company must file its Annual Returns for the Financial Year using form MGT-7.

• AOC-4 Form – For the Filing of Financial Statements

Private limited company must file its Balance Sheet, Profit and Loss Account Statement, and Director’s Report included in the form within 30 days of conducting its Annual General Meeting.

Other

• Audit of Statutory Accounts

Companies must prepare for the compulsory annual audit of their financial accounts by a practicing Chartered Accountant.

• Organizing the Annual General Meeting

The company must hold the Annual General Meetings (AGM) at least once each calendar year.

• Director’s Report

All relevant data must be shown in a Director’s Report in accordance with Section 134.

Auditing

Due to the microanalysis and scrutiny of financial information, the Annual Statutory Audit is a complicated procedure that could be highly stressful.  After private limited company registration, if the company plans its audit correctly, it may become a routine aspect of its operations and help it become more efficient both financially and operationally. Hope that this blog will help you in understanding about the annual procedure in a way that complies with all auditing requirements.

What is Statutory Audit?

Statutory essentially refers to anything that falls within the regulations established by the government. An audit is an inspection. An examination conducted in the private limited company (or any other type of company) to evaluate a company’s financial position is Statutory Audit.

Some aspects for a smooth process that complies with all auditing requirements are as follows:-

Assist the Auditor

Auditors need to be fully aware of all of the company’s transactions. By giving them the appropriate information, you may aid in their understanding of your company. This consists of :-

• Corporate Structure: Company’s history and Market share
• Information about Operations: Services, Products, Marketing, Processing, etc.,
• Processing: Accounts, Shares and Stocks, Liquidity, Financial Statements

Plan the Audit

The Audit is a process that involves a lot of paperwork and is intensive. A schedule with a to-do list, list of tasks, documents that need to be arranged, and names of people in charge of creating certain documentation must be kept by a private limited company. It would be great for auditors to get in touch with everyone on the list.

Main areas around which Audit works

• Statutory Records
• Stocks
• Receivables and Payables

Profit and Loss Account

Some items which are shown under it are as follows :-

• Sales and other sources of income
• Manufacturing and Administrative costs
• Purchases and other expenses

Balance Sheet

It includes items such as :-

• Share Capital
• Secured and unsecured loans
• Fixed assets
• Current Assets
• Current Liabilities

Essential and crucial documentation

Some examples are :-

• Purchase bill
• Sales register
• Salary and wages
• Fixed assets purchased
• Trade license
• Payment of advance tax
• TDS certificates
• Bank reconciliation statement

Records of the private limited company(here), can be thoroughly checked by auditors. Depth of auditing in a company depends on the quality of the internal control assessment performed by it, according to the auditors decision.

Feedback

In an ideal audit environment, after each phase of evaluation, the company does informal discussions on various internal control aspects and a review of the audit process so far conducted.

Audit Report

Once the audit team has effectively handled problems relating to the company’s financial records and transactions, the audit report is prepared. The report is then given to the Board or Auditing Committee.

After private limited company registration, the process is completed and the operations of the company starts, it may be difficult to complete the audit procedure and adhere to requirements. You may need a professional touch frequently to ensure efficient day-to-day operations.

At Finaccle, we assist your business in meeting ROC compliances from the basic step of company registration in India (or abroad) and company incorporation to meeting Audit requirements too!

Contact us today for all services related to the Finance-Taxation-Accounting-Legal domain!

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