Private Limited Company Registration Online in Tamil Nadu

Online Private Limited Company Registration in Tamil Nadu – Meaning, Documents and Procedure

Starting a business is not always a cakewalk, but becomes a series of sleepless nights, and stressful days. The struggle becomes real if the research department has not received its call of time. The research to understand the kind of company one should choose for company registration and the prerequisites that come along with that is an extensive process to be taken care of. If the private limited Company is what suits your business model, then let StartupsFiling help you ease down the process by understanding the benefits, mapping the challenges, and satisfying the prerequisites for the company registration of a Private Limited.

What is a “Private Limited Company”?

A common choice for new businesses is a private limited company, suitable for both small and large-scale enterprises. Initial capital can originate from the owner, family, or private equity sources. As businesses grow and require additional funds for expansion, they have the option to convert into a public limited company by offering shares on the stock exchange. Furthermore, companies can raise capital by issuing debt securities like bonds and medium-term notes. This transition allows them to access public investment and diversify their financial strategies. Private Limited Company holds certain distinctive features such as:

1. Owner: Owner in a private limited Company is known as a shareholder which should be 1 minimum and can extend maximum to 200. This shareholder can either be an individual, a trust, another entity, or a company.
2. Limited liability: The private limited company is limited in its liability, defining that the shareholders are protected against the liability of the company. As a result, when a company goes bankrupt, Shareholders and their personal assets are protected in the company’s debt recovery but only the capital invested in the company under their name is at risk.
3. Operation: A private company is operated by its board which is appointed by the shareholders of the company. The Board of Directors is responsible for all sorts of decision-making and functioning of the company. If required, a shareholder can also be a member of the Board as a Director.

Why to register as a private limited company?

There exist eight different forms of company structures under the Indian legislation, where each structure covers a set of business models. Though there is no hierarchy in the benefits prospect of each company structure owing to the reason that each of them has its own range of benefits matching the operations, needs, and functioning of the business, the Private Limited Company holds to be one of the most popular forms of company structure in Tamil Nadu, or even in the world. A private limited Company is the most structured, regulated, and organized form of business where the primary factor is the separation in Identity of the company from its operators.  There are other factors too that attract individuals or business owners to choose Private Limited Company (PLC) when it comes to company registration. A few of such benefits are:

1. Uninterrupted Existence: The business has its own ups and downs asking for continuous efforts and time which eventually becomes inconsistent with time especially when the business owner has the intention of taking a break, getting retired, and lacking energy to work more. Such scenarios raise the question of “who’ when it comes to running the business. The private Limited Company offers such freedom to business owners to gain freedom from work without costing the business operations as a business owner who is referred to as a director may go off-board, letting other directors take the job.
2. Separate Identity: Another distinctive feature that makes a PLC a topmost choice for most startups is the separate identity a business gains, and so do its directors. All business has its good days and bad days, leaving the good aside, the bad is something one plans about. In those days when the business has its downs, the directors are safe when it comes to their assets, which remain untouched.
3. Confidentiality: Unlike that of a public limited company, the private limited company does not follow the obligation of transparency and therefore, can keep the financial documents limited to only Shareholders or board members, excluding the general public access.
4. Pool of Investors: In a PLC, there can be a board of a minimum of two directors extending to 200 in number which opens the doorway for the pool of investors required to run the business operations. In comparison to other forms of businesses, PLC allows the maximum agility to gain funds, which is why PLC is the go-to option for startups.
5. Limited Liability: In general practices, the loss in a business drags the individuals associated with it in terms of profit. They become obliged to care for the loss, as they enjoyed the course of profit. PLC safeguards its directors in matters of loss by limiting the liability of the company to its assets meaning that only the company assets will be under the radar for loss recovery.

What Are the Benefits You Get Out of Our Services?

With our services for Private Limited Company registration in Tamil Nadu discover the multitude of advantages that awaits you when you choose to partner with StartupsFiling. Let us delve into various reasons why trusting us with your Private Limited Company registration in Tamil Nadu is the smart choice for your business’s long-term success: 

• Comprehensive Assistance: At StartupsFiling, we offer comprehensive assistance throughout the Private Limited Company registration process. From initial documentation to final compliance checks, our team of consultants will ensure you experience a smooth and efficient registration journey.
• Personalized Guidance: Getting tailored guidance focused on your specific company requirements. Our team of experts takes the time to understand all your Private Limited Company registration needs and your objectives and then develop tailored solutions to match your individual needs, therefore ensuring optimal outcomes.
• Expertise and Experience: Trust our knowledge and experience in negotiating the complexities of Private Limited Company registration in Tamil Nadu. With years of industry knowledge & a dedicated team of experts, we ensure a smooth registration procedure from starting to the end.
• Integrity and Transparency: By partnering with us, you can be sure that your Private Limited Company will be run with the highest level of integrity and transparency. We will ensure that every aspect of your company aligns with our vital principles to build an ecosystem of integrity & trust.

Select a partner who is dedicated to the resilience, expansion, and long-term success of your Private Limited Company rather than just compliance. Allow us to be the driving force behind your Private Limited Company registration process in Tamil Nadu, where every aspect is managed by skilled professionals and every move is directed by a dedication to efficiency.

Documents Required for Private Limited Company Registration

To continue with the successful company registration of the private limited company, you will require the following documents required Private Limited Company Registration:

• Permanent Account Number  
• Governmental Identity Proof [Adhar Card, PAN Card, Passport]
• Bank Statement   
• Utility Bills such as Electricity Bill 
• Passport Size Photographs
• Director’s Specimen Signature  
• Memorandum of Association
• Article of Association
• The resolution passed by the Board or letter of consent

Challenges you might face in Private Limited Company Registration

There is no doubt that a private limited company is one of the most popular forms of company structure but it can also not be denied that there is no such thing called absolute. There are certain challenges that accompany the most prominent company structure followed around the globe. A few of such challenges include:

1. Complex process: The process of company incorporation is a bit complex in comparison to that of other company structures, owing to the fact that it is the most organized, and structured form of company under the Indian legislation. An increase in the number of facilities also increases the complexity of the process.
2. Higher Costing: The cost of company registration of Private Limited Company is relatively higher which is another drawback of a Private Limited Company. Sometimes this also becomes a hurdle for those with tight budgets.
3. Intricated accounting: While registering the private limited company, the accounting details and documents required to be filed are quite complex and intricate which demands attention span and effort. This is another sort of challenge that one faces in the company registration process.
4. Shared Profits: Owing to a wide badge of directors, Private Limited Company has the advantage of a big pool of investors. This advantage brings another hold of drawback along with it, which is when the company profit becomes subject to shares.
5. Ownership Transfer: The ownership transfer in a private limited company is not an easy task to deal easily as it requires the approval of other shareholders. For the fact that the shares of the company cannot be sold out to the general public (being a private limited), the process becomes a complex one. 
6. Transparency: Unlike that of a public limited company, a Private Limited Company is not transparent when it comes to dealing with details and documents related to company operations. This includes documents related to financial statements as well.

How to register a private limited company?

If you have found your destination in the face of a Private Limited Company, then let StartupsFiling map the road to your destination. Following the given route, the company registration process becomes easy to handle.

Step 1: Select the Company name

Business structure selection is the first step for company registration and when the private limited company is what you have chosen, time is to select the company name. It is important to then verify if the selected name is available for company registration. Once MCA approves a certain name, the applicant then is left with 21 days to register the company.

Step 2: Digital Signature Certificate  

The next step comprises obtaining the Digital Signature Certificate (DSC) which is the digital identity of the applicant registering itself as the director. DSC is required for proceeding ahead with the company registration process as it is needed for drafting the Memorandum of Association (MOA) and Articles of Association (AOA). It is important to note that the DSC can be obtained only through government-certified organizations.  

Step 3: SPICe+ Form (INC-32)  

SPICe+ Form (INC-32) has been introduced to streamline the company registration process for private limited companies. This form is used to obtain Director Identification Number (DIN) which is required by individuals intending to be a director, Employees’ Provident Fund Organisation (EPFO), Company’s PAN, Company’s Tax Deduction Account Number, and Employee’s State Insurance Corporation (ESIC) applications.

Step 4: Electronic submission of MoA and AoA  

A Memorandum of Association and an Article of Association are one of the main components of company registration as one directs the charter and the other lists the internal rules and regulations for the company. Therefore, both MoA and AoA are required to be submitted electronically, using the INC-33 and INC-34 forms respectively especially in cases where the first subscribers are either non-individual persons (based in Tamil Nadu), Indian nationals being subscribers (non-directors) & subscriber-cum-directors, and foreign national being subscribers (non-directors) & subscriber-cum-directors [DIN and business visa is a must]. 

Step 5: Non-electronic submission of MoA and AoA  

In certain cases, the submission of MoA and AoA is done through the non-electronic method in the form of an attachment to the SPICe+ Form. Such cases include where the first subscriber is a non-individual subscriber [Foreign based], a foreign national other than a director with a valid DIN but no valid business visa, a foreign national being a director with a DIN but no valid business visa, the foreign national being a director with no DIN and at last in a company with more than seven subscribers.

Step 6: PAN and TAN Applications  

After the submission of MoA and AoA, now is the time to acquire the PAN and TAN in the company’s name from MCA which further is used in paying the company taxes and deducted taxes in the company name.   

 Step 7: Fee Payment  

After all the documentation, now the applicant must pay the respective fees including the filing fee for the SPICe+ Form, company registration fee for MoA and AoA, applicable Stamp Duty, etc.

Timeline to follow in company registration process

1. Director Identification Number (DIN) and Digital Signature Certificate (DSC): To obtain DIN and DSC, which is the first step in the company registration process, it takes 1-2 business days on an average.
2. Name Availability: Next step comprises of the checking on availability of the name with RoC (registrar or Company) which takes another 2-3 business days.
3. Filing of Documents: This step includes drafting, preparation and filing of documents like MoA, AoA, along with the form SPICe and Form URC-1 which demands for around 7-8 business days.
4. Certificate of Incorporation: Once the form is filed along with document, now time is to wait for the ROC to verify the documents. Once verified, RoC will issue the Certificate of Incorporation (CoI) which takes around 2-3 business days.

In totality, the entire process of a private limited company registration takes 3 weeks on an average from the date of starting the preparation to the receipt of the Incorporation Certificate.

Why StartupsFiling for Private Limited Company Registration in Tamil Nadu?

Company formation has always been a multidimensional process to be taken care of, which eventually requires a good amount of research and deliberation. Understanding the pros and cons of a structure and then choosing the structure that best matches the needs and requirements of your business is not a single hand job, but need multiple feet in. This process becomes easier when accompanied by the right kind of support. If you have decided to register your business as a private limited Company, then let StartupsFiling do the rest of the job for you, where you just lay back and dream for your dreams to turn into reality.