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Private Limited Company Registration India

Private Limited Company Registration India

Company forms specific get together of obvious people in order to run the same interest of business. Company can also be called as collection of people to carry same corporate activities. In order to run their business smoothly, need to follow rules and regulations suggested under companies act of 1956 in India. There are various modes of company like public company, sole proprietors, private company, partnership mode and many more to carry authentic business. Under these modes, private limited company is one of the most demand-able and high favorable types that mostly taken out by Indian entrepreneurs. Well, to carry business legitimately, private limited company registration is one of the tools that makes you with every successful on the different stages of corporate life.

Private Limited Company Process in India

The private limited companies in all economic fields in India are registered under the regulations of the Companies Act, 1956. The private limited companies of foreign business corporations are also registered under this Indian Act, with some additional formalities with the Reserve Bank of India (RBI). Our well-established and experience law firm provides rigorous, responsible, perfect, and economical legal services to all these categories of private limited companies, in all across the country. The private limited company registration process followed in India is as follows:

The pre-requisites for private limited company registration in India are that it must have at least two shareholders (the maximum number of its shareholders permitted is 50), and the minimum paid-up capital of INR 100,000/- at the time of its incorporation. The private limited company registration process starts with forwarding at least four proposed names for the company, to the Registrar of Companies (ROC) in the State of Union Territory, where the main registered office of the company is to be set up, or the business is to be conducted. The approved company name by the concerned ROC is valid for a maximum period of six months. Within this period the Memorandum of Association (MOA) and the Articles of Association (AOA) must be filed with the ROC, together with various other requisite and ancillary documents. Well-rounded support of our experienced and punctilious company attorneys and lawyers is provided for drafting and making of these necessary documents for filing with the ROC. In general, a time period ranging from two to three weeks, is elapsed in the overall process of private company registration in India.

Key Benefits:

  • A) Tax Benefits The most important reason for conversion of a company into an LLP is on the tax front. Currently, the Income-tax Act, 1961, provides for payment of minimum alternate tax (MAT) as also for payment of dividend distribution tax (DDT) by companies. An LLP, which is not a company, should not be liable to pay DDT.
  • B) No Limit on number of shareholders/partners Unlike private limited companies (shareholders limited to 50), an LLP can have unlimited number of partners.
  • C) Minimal Compliance Level & Cost effective model There is no need of compliances related to meetings and maintenance of huge statutory records.
  • D) Automatic transfer All the assets and liabilities of the Company immediately before the conversion become the assets and liabilities of the LLP.
  • E) No Stamp Duty All movable and immovable properties of the company automatically vest in the LLP. No instrument of transfer is required to be executed and hence no stamp duty is required to be paid.
  • F) No Capital Gain Tax No Capital Gains tax shall be charged on transfer of property from Company to LLP.
  • G) Continuation of Brand Value The goodwill of the Company and its brand value is kept intact and continues to enjoy the previous success story with legal recognition.
  • H) Carry Forward and Set off Losses and Unabsorbed Depreciation The accumulated loss and unabsorbed depreciation of Company is deemed to be loss/ depreciation of the successor LLP for the previous year in which conversion was effected. Thus such loss can be carried for further eight years in the hands of the successor LLP.

Key requirements:

  • On Conversion, all the members/shareholders of the company shall become partners of the LLP in the same proportion in which their capital accounts stood in the books of the company on the date of the conversion.
  • Upto date filing of Income tax returns & Annual returns with RoC
  • consent of all the unsecured creditors for the proposed conversion
  • The partners receive consideration only by way of allotment of shares in LLP
  • Minimum 2 Designated Partners
  • Atleast 1 of the designated partners shall be an Indian Resident
  • If a body corporate is a partner, it has to nominate a natural person as its nominee
  • The Partners and Designated Partners can be same person
  • There is no concept of share capital, but there has to be some sort of contribution from each partner
  • DIN (Director Identification Number) for all the  Designated Partners
  • DSC (Digital Signature Certificate) for two of the Designated Partners

Steps in Conversion of Private Limited Company into an LLP:

(Working Days)
1 Preliminary Documentation Discussion between Company Fundamentals Team & the Promoters of the Company:

  • Ascertaining document requirement and availability
  • Preparation of signing documents by
  • Signing of the Incorporation documents by Promoters
  • Sending the Signed document by Promoters to Company Fundamentals
5(Varies by the response time taken by the Promoters)
2 DSC (Digital Signature Certificate)Getting DSC for Designated Partners for digital authentication of the Incorporation documents 1
3 DIN (Director Identification Number)Approved DIN is a pre-requisite for incorporation process 1
4 Preparation of Main Object & Name Availability Search

  • Preparation of Main Object by Company Fundamentals
  • The Promoters have to provide atleast 6 (Six) names in the order of priority
  • To make an online search of availability of names as desired by the Promoters
  • Confirmation of the draft main object & the final name
3(Varies by the response time taken by the Promoters)
5 Application for Name Availability

  • Filing of Form 1 with the concerned ROC
6 Incorporation Process:

  • After ROC’s approval for name of the Company, filing all the Incorporation documents with the ROC
  • Online uploading of e-Forms
  • Payment of Registration fees
  • Receiving Incorporation Certificate
7 Post-Incorporation Process:

  • Drafting LLP Agreement by Company Fundamentals
  • Confirmation of LLP Agreement by the Promoters
  • Stamping of LLP Agreement
  • Filing of Form 3
5(Varies by the response time taken by the Promoters)