Private Limited Company Registration in Chennai
FIRMDESK provides complete services for private limited company registration in Chennai. Registering a private limited company in Chennai, India, involves several steps and compliance requirements governed by the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013. Here’s a step-by-step guide to registering a private limited company:
Ensure Eligibility
Minimum Directors: At least two directors are required, and at least one must be an Indian resident.
Shareholders: Minimum of two and a maximum of 200 shareholders.
Capital Requirement: No minimum paid-up capital is required (you can start with any amount).
Unique Name: The company name should not conflict with existing trademarks or companies.
Obtain Digital Signature Certificate (DSC)
All proposed directors must obtain a DSC, as most documents are filed online.
DSCs can be obtained from government-authorized certifying agencies like Mudhra, NSDL, or Sify.
Apply for Director Identification Number (DIN)
Directors must have a DIN.
If they don’t have one, apply for it through the SPICe+ form (explained later).
Choose and Reserve a Company Name
Use the RUN (Reserve Unique Name) service on the MCA portal or through the SPICe+ form to check and reserve the desired company name.
Ensure it complies with the naming guidelines issued by MCA.
Prepare Incorporation Documents
Key documents include:
- Memorandum of Association (MoA): States the company’s objectives.
- Articles of Association (AoA): defines the company’s internal rules and regulations.
- Declaration by Directors: Form INC-9, stating compliance with the Companies Act.
- Proof of address for the registered office (e.g., utility bill) and no-objection certificate (NOC) from the property owner.
File for Incorporation
Use the SPICe+ form (Simplified Proforma for Incorporating Company Electronically):
- SPICe+ is an integrated web-based form available on the MCA portal.
- It allows incorporation, name approval, DIN application, GST registration, EPFO, ESIC, Professional Tax, and opening a bank account, all in one application.
PAN and TAN Application
The SPICe+ form also facilitates applying for the company’s Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) from the Income Tax Department.
Verification by MCA
- Once submitted, the MCA verifies the application and attached documents.
- If everything is in order, the MCA issues:
- Certificate of Incorporation (CoI) with a unique Corporate Identification Number (CIN).
- PAN and TAN.
Post-Incorporation Compliances
- Open a Bank Account: Use the CoI and other documents to open a corporate bank account.
- Commencement of Business: File Form INC-20A within 180 days of incorporation to declare the commencement of business.
- Maintain statutory registers and financial records and comply with periodic filings like annual returns (Form MGT-7) and financial statements (Form AOC-4).
Verification by MCA
- Once submitted, the MCA verifies the application and attached documents.
- If everything is in order, the MCA issues:
- Certificate of Incorporation (CoI) with a unique Corporate Identification Number (CIN).
- PAN and TAN.
Post-Incorporation Compliances
- Open a Bank Account: Use the CoI and other documents to open a corporate bank account.
- Commencement of Business: File Form INC-20A within 180 days of incorporation to declare the commencement of business.
- Maintain statutory registers and financial records and comply with periodic filings like annual returns (Form MGT-7) and financial statements (Form AOC-4).
Benefits of Registering a Business as Private Limited Company
Registering a private limited company in India comes with several benefits, making it a popular choice for entrepreneurs and businesses. Below are the key advantages:
Limited Liability Protection
Shareholders’ personal assets are protected in case of company debts or losses.
Liability is limited to the extent of unpaid share capital.
Separate Legal Entity
A private limited company is a distinct legal entity, separate from its owners and directors.
It can own property, incur debts, sue, and be sued in its name.
Credibility and Trust
Registered companies are perceived as more reliable by customers, investors, and lenders.
A Certificate of Incorporation serves as proof of legitimacy.
Easier Access to Funding
A private limited company can raise equity capital from investors, angel investors, or venture capitalists.
Borrowing capacity is higher compared to unregistered businesses, as banks prefer lending to registered entities.
Perpetual Succession
The company’s existence is not affected by the death, resignation, or insolvency of its directors or shareholders.
Ownership can be transferred easily through a share transfer.
Tax Benefits
Companies enjoy certain tax benefits and deductions under the Income Tax Act, including:
Lower tax rates compared to individual income tax slabs.
Deductions for business-related expenses.
Ownership Flexibility
Ownership is determined by shareholding.
Shares can be transferred easily among existing shareholders or new investors.
Brand Recognition
The suffix “Private Limited” adds prestige and recognition to the brand.
Customers and partners often prefer dealing with a formally registered entity.
Easy Exit Options
A private limited company can be sold or merged with another entity, offering flexibility for exit strategies.
Compliance with Laws
While compliance is mandatory, it ensures systematic operation, transparency, and accountability.
It’s easier to expand operations both domestically and internationally.
Employee Benefits
Private limited companies can offer attractive benefits like ESOPs (Employee Stock Ownership Plans), helping to attract and retain top talent.
Ease of Global Expansion
Being a recognized legal entity, it becomes easier to enter into contracts, form international partnerships, or open branches overseas.
Pvt Ltd Registration Cost
Our Highlights
- Timeline: 15 working days
- Expert Guidance
- Efficient Processing
- Transparent Pricing
- Post-Registration Services
