Starting a business is the toughest decision one can take but it gives you the maximum fulfillment of your dreams and desires. Your decision to begin your entrepreneurial journey starts with the decision of selecting the right business structure to follow. Anyone can choose a private limited company to build a scalable business. It’s the most famous legal structure for the business with multiple benefits such as limited liability, separate legal entity, ease in share transfer etc.
Private limited company is governed by MCA (Ministry of corporate affairs) under Companies Act, 2013. Private limited company can be registered with minimum of 2 directors and 2 shareholders, where shareholder and director can be same person. The maximum number of directors can be 15 and the maximum members can be 200.
The shares division depends on the percentage of the capital amount invested in a company. The profit is also divided as per the share holding of the shareholders.
The capital in a private limited company is the amount which shareholders are planning to introduce in the company. In a private limited company, the capital amount can be -
Authorized share capital
Paid up capital.
The minimum amount of authorized share capital, with which a company can initiate the registration process, is 1 lac INR. However, there is minimum cap on limit of paid up capital.
Just like any other company, private limited company also has a certain set of rules and guidelines which are confined in MOA and AOA. Memorandum of Association (MOA) and Articles of Association (AOA) are the master documents of the private limited company determining the guidelines, mutual rights and duties between directors and shareholders. MOA comprises of 6 clauses –
Name clause – under this the name of the company is specified. The name is selected as per the Rule 8 of Companies Act, 2013. It should not be identical to any existing company’s name or with any trademark.
Registered Office clause – This clause helps to determine the state jurisdiction of Registrar of Companies.
Object clause – In this clauses, one defines the object of the company. The object comprises of all the activities or work to be carried in the organization. The company involve in any activities outside their company’s object.
Liability clause – under this clause, the liability of the shareholders is defined. In case of the company limited by shared, the liability of the members or the shareholders is restricted by the amount each member has agreed to contribute.
Capital clause – This clauses defines the maximum number of share the company can issue
AOA (articles of association) defines the set of rules and regulations for the management. It lays down the internal guidelines to be followed in the organization. It consist of the rules regarding the transfer of shares, an audit of the company, voting rights of the shareholders, the appointment of directors, share capital etc.
Eligibility Criteria for Private Limited Company Registration -
The company can be incorporated with have minimum of 2 directors and maximum 15 directors.
The number of members cannot be more then 200
In case of foreign shareholders or directors, at least one director should be the citizen of India.
Minimum share capital required to form up Private Limited Company is Rs1 lakh. However, there is no minimum cap on paid up share capital.
Steps to Incorporate a Private Limited Company in India?
It’s necessary to apply for a Digital signature of the designated partners before starting the private limited company registration.
The DSC is important as all the documents before submission are required to be digitally signed.
Step 2: Apply for DIN (Director Identification Number)
The application for DIN is mandatory for each director.
The DIN application has to make in Form DIR-3.
Step 3: Name Approval and its Reservation
The private limited company name approval is an important step to establish a company.
RUN (Reserve Unique Name) form is filled for the reservation of the name given by Private Limited Company.
The name provided must be as per the rule 8 of Company Registration Act, 2013
Step 4: Preparation of form INC 33 and INC 34
This step involves the drafting of MOA and AOA. These are drafted under INC 33 and INC 34 respectively.
If required we can file for ESI, EPF, GST at the same time under the form names AGILE
Step 5: Incorporation of private limited
For the Incorporation of private limited company, the incorporation forms (INC 33, INC 32, AGILE) are uploaded with SPICe form INC 32. These are to be filled with Registrar of companies of the respective state in which the registered office of the company is located.
Step 6: Approval of the documents
Once the SPICe form INC– 32 is approved, the registrar provides the company identification number (CIN) along with PAN and TAN of the company
Advantages of Private Limited Company Registration
Limited Liability of shareholder
Separate Legal Entity: Company legal entity are separate than its shareholders/promoters.
Capacity to Sue and to be Sued
A Private limited company can sale, purchase and own the property like individual on its own name.
Private limited companies can easily avail financial assistance/borrowing from banks and financial institution compared to another form of entity.
Easy funding from investors
Continuity of existence
Benefits & Liabilities of a Private Limited Company
Benefits of a Private Limited Company
Shields personal assets from business liability, limits liabilities of Directors.
The Private Limited Company (Pvt. Ltd) continues to exist even after the death of the Shareholders
Open doors to raise capital from a venture capitalist, angel investor, financial institutions etc.
Creates brand value as private limited structure is more transparent compared to other business structures.
Ownership gets transferred by just transferring shares.
Private Limited Company is a unique identity, can own/acquire and alienate, property in its name. Property owned could be anything like copyrights, patents, machinery, building, intangible assets, land, residential property, factory etc.
It’s easy for a private limited company to get funding or borrow capital from angel investors/venture capitalists/banks/ financial Institutes in comparison to other company types.
Liabilities of a Private Limited Company
A private limited company must hold a board meeting annually
File annual returns with MCA (Ministry of Corporate Affairs)
Annual account audit by a CA is mandatory
Private limited company requires filing the annual return with the Income Tax Department
Hire Your Compliance Officer Today
Get 1 months free compliance support
24/7 Expert Advice anytime anywhere
200+ Top CA/CS/Legal Team
Each company in India has to follow a set of compliances as set by different other regulatory bodies. The ‘Company Annual Compliance’ regimes need companies to gather their business information and update the regulatory bodies such as Ministry of Corporate Affair (MCA), Income Tax Department other regulatory bodies.
No, you need not to be present at our office or appear at any office for the incorporation of a Private Limited Company. All the documentation has been completed by us. In case of any communication during incorporation, we might use email to receive or send documents to you.
In this aeon of the competitive business world, starting and registering a new business is a toughest decision one has to make. The main question comes what to choose among number of business entity tRead More
GST came in like an unexpected wave and changed the way one of a kind eating places operate in India. It has facilitated quite a few, whilst many had been lacking in a state of complete confusion. TheRead More
As a highest source of nourishment for over half the world's population, rice is by far one of the most essential commercial food crops. Its yearly yield worldwide is approximately 535 million tons. FRead More
Steps taken by FDA while testing any new additive. 1)The composition and properties of the additive substance, 2)Immediate and long-term health effects/risks, 3)The quantity that would typically be cRead More
As per the new guidelines, companies should write “Packaged drinking water” rather than “Packaged Natural drinking water”. According to the authorities, natural mineral water is unlikely to beRead More
FSSAI License is mandatory for all type of packaged drinking water companies. In recent years FSSAI Department is more concern about the safety of water available to human consumption; here we can expRead More
India is number one milk producing country in the world and contributes to almost 20 percent of the global milk production. The per capita consumption of milk in India has increased from 176 grams perRead More
Food safety and standard authority of India (FSSAI) has published a detailed FSSAI guidelines for hotels/hospitality industry and hence getting an FSSAI license is compulsory for all FBO’s falling uRead More
It is important to note that FSSAI regulations cover eight food categories and carry information like composition, labels, claims, etc., as required. In this blog we will discuss all these 8 categorieRead More
The food License issued by FSSAI is valid for 1 year up to 5 years accordingly as per the fee. Each food business operator must apply for FSSAI renewal 30 days prior to the expiry of their current fooRead More
Online Food Licence Registration by Corpseed. A misunderstanding with FBOs is that FSSAI license is needed by businessman only. FSSAI license is mandatory for all FBO's and FSSAI issues three DifferRead More
Some of the key responsibilities of the FSSAI are: Lay down science-bases standards and rules for safety of food products - To control the storage. manufacturing, distribution, sales and import of theRead More
FSSAI provides an opportunity to all FBO’s (Food Business Operators) to apply online for Central food license with the help of Online Licensing System. It is mandatory for any FBO’s falling under Read More
ASCI has instructed Dabur, ITC, Cargill, Patanjali, Ayurved to modify their ads in the recent past for being misbehaving advertisers. Country’s top two regulators — the Food Safety & Standards AutRead More
Keeping the food quality at higher level and make sure the safety of consumer health and provide satisfaction to every consumer is the objective of every Food Business Operator. Food safety and standRead More
Digital Gujarat is an online portal that has been created by the Government of Gujarat for the assistance of the citizens of Gujarat. It is developed to avail various online services at one web portaRead More
The manufacturer who is dealing with the Ayurvedic or Herbal products in India has to obtain the license from AYUSH regulated by the Ministry of AYUSH. On 9th November 2014 the ministry of AYUSH was fRead More
Due to fast paced life style in Indian metro cities, most of the people stying there prefer a quick solution to ther food requirements. Swiggy is the nation's largest as well as fastest growing food dRead More
Food safety regulatory authority FSSAI has permitted small organic producers, having an annual turnover of over Rs 12 lakh, to sell their produce directly to end consumers without certification till ARead More
The Central government hereby makes the further rules to amend the companies (incorporation) Rules, 2014 known as companies (incorporation) Amendment rules 2014. This MCA vide its notification dated 2Read More
Most of the business in the western side of India located under the boundaries of Gujarat As due to geographical location and neighbor states like Rajasthan, Madhya Pradesh and also Maharashtra. RightRead More
It is always being of high priority to make your firm legal and nurture from smooth running point of view. The favor-ability as well as global approval are the only 2 tricks that make a business with Read More
Assessing your business under the ideal business structure is a significant choice. Assessing your business under the ideal business structure is a significant choice. Determine the advantages and disRead More
The rupee touched a historic low of 74.50 to a dollar in intra-day trade Thursday, before closing at 74.12. This will create opportunities for export from India. As per Export laws, once must obtain IRead More
National Scholarships Portal is 1 entry point for enabling many different services such as processing, sanctioning and disbursal of student program and application receipt of different scholarships tRead More
Through the SEBI ordinance 2014, any pooling of funds under any scheme or arrangement, which is not registered with SEBI, involving a corpus amount of one hundred crore rupees or more shall be deemed Read More
The vibrant growth of Indian Pharma Industry and the recommendations from four key National Pharma associations made. The Ministry of Commerce & Industry, Govt. of India realized the need for separateRead More
The recognition of a laboratory shall be for a period of three years. Recognition fees as notified from time to time is payable in advance. The recognition is renewable as per the provisions of this sRead More
The Proprietor hereby grants to the Licensee a non-exclusive license to use the Mark on the packaging in which the licensed goods are packed in the Territory for commercial use in accordance with the Read More
This form is to be used for making application for the grant of Carry-On-Business (COB) License under the provisions of Sections 13(a), 13(b), 13(c) and 29B(2) of the Industries (Development & RegulatRead More
During the 9Th plan the Ministry of Food Processing Industries operated, inter-alia, the scheme for creation of backward linkages with objective of increasing capacity utilization of food processing Read More
Delhi Pollution Control Committee Consent/NOC means No objection certificate which is issued to ensure that the business entity being set up will not cause any harm to the environment or society. Read More
All small businesses require funds for business activity. An entrepreneur can raise funds from Self-financing, Financing from Family and Friends (Love Money) and from Banks and Other Financial InstituRead More
An entrepreneur needs to have a particular skill set to be a successful businessman. Knowledge, self-assessment, administrative, managerial and organizational skills are absolute must for an entreprenRead More
There are various schemes sponsored by Central and State Governments to provide funds for startup by woman entrepreneurs. Some of the them are Annapurna Scheme, Stree Shakti and Bhartiya Mahila Bank Read More
FSSAI offers three different types of registration and licenses to food business operators in India. An FSSAI license could be a basic registration for petty food business operators or state license aRead More
A Cold storage facility is a walk-in freezer space where refrigeration of perishable food articles is performed. Any cold storage unit consists of a refrigeration system for retarding the effect of mRead More
FSSAI has been bestowed with punitive powers by the FSS Act 2006. It can penalize any food business operator if the food is sub-standard, for wrongful branding, food containing unnecessary or extraneRead More
FSSAI has issued regulations for packaging & labelling of food products. It include ISO certification for plastics used for packet manufacturing, BIS standards for internal metal coating, dispaly of lRead More
Small food vendors and small food businesses require FSSAI registration if the annual turnover is less than Rs.12 Lakh, if it exceeds, then the food business need FSSAI License which could be a state Read More
The inspections and audits of Food Business Operators (FBO) by FSSAI officials is a routine process and should not be worried about. An FBO need to have proper documentation of license and permits. Read More
To turn a restaurant startup into a successful business, an entrepreneur need to be passionate about food and be able to negotiate with vendors, employees, merchandisers, distributors etc along with kRead More
There are numerous small business ideas that stay-at-home moms and dads can work on for their home-business. It could be a business of technology services, child care, tutoring, teaching, tailoring orRead More
FSSAI has specified the percentage terms and standards of additives like cocoa butter and vegetable fats to be mixed with chocolates for chocolate production in all ten categories of Chocolates avaiRead More
The primary responsibility of keeping the food safe and secure is that of the Food Business Operator (FBO). FSSAI and other Govt. agencies share the secondary responsibility ensuring the rule of law oRead More
If an importer wants to import food products in India, he is required to apply for an FSSAI License. He would have to submit documents such as VAT certificates, Import - Export Code (IE code) with theRead More
Ministry of Consumer Affairs, along with other Ministries, have asked FSSAI to float tenders for invitation of bids for construction of silos for storage of food grain procured by Food Corporation of Read More
Every entrepreneur is scared and apprehensive of his new business failure. The fear of failure prevents many individuals to stay away from the startup ecosystem. This can be changed by instilling a wiRead More
If an entrepreneur wants to open a bakery shop or already having a bakery business, he need to apply to FSSAI for the required registration or a license depending on the annual turnover and food businRead More
An entrepreneur may decide to open a new restaurant or buy an existing one depending on the circumstances, and costs and whether he can drive any value from the existing restaurant. Distress business Read More
There are various business ideas for entrepreneurs and startup ecosystem. These business ideas range from freelancing as software developer to managing children's services and facility maintenance serRead More
A food business operator could be complete FSSAI Compliant by following the guidelines of the food authority regarding food inspections, employee responsibilities, continuous inspections and food safeRead More
An entrepreneur is required to allot considerable resources to develop a concept and the design for his restaurant which will be commensurate with the products and services provided. The designs of kiRead More
An entrepreneur may make many mistakes during his business journey, be it wrong product positioning, absence of market research, sunk costs, inadequate marketing efforts or ignoring competition.Read More
If an entrepreneur loves animals, he may be interested in business ideas which enable him to earn money while playing with pets and other animals.Read More
I would like to thank for professionalism and efficiency. Your assistance and sound advice has allowed me to compute my tax bill in efficient and prompt manner.
Sun Line Communications Systems
What I liked most is the reporting method and the proper communication by CORPSEED team & delivery of services on time.
CEO and Principal Consultant at Advance Innovation Group
We are very pleased with the quality of service your company provides. We sincerely appreciate your work and the way you conduct business.
Founder and CEO at Skill Development Council of India
I have found CORPSEED to be quietly dedicated efficient, providing good value for services relating to company formation in Singapore!
CEO - ByKie
"I just experienced possibly the very best customer service provided by CORPSEED as they provided point to point details of their services."
AVP Services at Liqvid
"I heard about CORPSEED through a friend and I came to know that they are providing service of AYUSH and they assisted me for product and I am very about it."
"Thanks for the prompt response to my request, I really appreciate it. Moreover, your service charges on company formation are reasonable enough for new start-up company like us."
Samarpan Herbs Life
"We are very pleased with the service and professionalism provided by CORPSEED. In addition to registration, accounting and tax services you have assisted us with advice to better operate our Us business."
Founder - Mittre India
"Really happy with the services provided by CORPSEED as they not only deliver the product on time but also suggest other innovative services which will give add on to your business."