Online Term Sheet Agreement
All companies registered in India like private limited company, one person company, limited company, and section 8 company must file MCA annual return and income tax return each year. Companies must conduct an Annual General Meeting at the end of each financial year and file an annual return with the Ministry of Corporate Affair to maintain compliance. For newly incorporated Companies, the Annual General Meeting should be held within 18 months from date of incorporation or 9 months from the date of closing of financial year, whichever is earlier. Subsequent Annual General Meetings should be held within 6 months from the end of that financial year. In India, normally the financial year starts on April 1st and end on 31st March. So a Company's annual return would be due on or before September 30th.
Two DSCs & DPINs
The partners must be registered with the MCA
We will then help you pick a unique name
Private Limited Company Agreement
We will draft your company's constitution
Private Limited Company PAN & TAN
We will send in a request to the NSDL
In addition to MCA annual return, companies must also file income tax return irrespective of income, profit or loss. Hence, even dormant companies with no transactions are required to file income tax return each year. Private limited companies, limited companies and one person companies would be required to file Form ITR -6. The due date for filing income tax return for a company is on or before the 30th of September.
Benefits to register Private Limited Company
After deciding on your business model, it's important to choose between the Private limited company registration and Private Limited Company, by understanding their differences and advantages they provide, so as to choose what’s best for your business model.
The most vital reason for registering as Private Limited Company is the limited liability. The members of the firm are only liable for a small amount of debt incurred by it. This is entirely different from proprietorship and partnership where the personal assets of directors and partners are not protected if the business becomes bankrupt.
separate legal entity:
- Private Limited Company is a separate legal entity from the partners. Each partner can sue the other in case a situation arises.
- It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. A term of dissolution has to be mutually agreed on for the firm to dissolve.
Transferring the ownership of Private Limited Company is also simple. A person can quickly be inducted in as a designated partner and the ownership switches to them.
suitable for small business:
- Private Limited Companys having a capital amount less than 25 lakhs and turnover below 40 lakhs per year do not require any formal audits. It makes registering as Private Limited Company beneficial for small businesses and startups.
- An Private Limited Company can own or acquire property because it is recognized as a juristic person. Partners of Private Limited Company cannot claim the property as theirs.
no owner/manager distinction:
An Private Limited Company has partners, who own and manage the business. This is different from a private limited company, whose directors may be different from shareholders. For this reason, VCs do not invest in the Private Limited Company structure.
Easy steps to register Private Limited Company in India - A complete process
We, Finleg make the process of registering for Private Limited Company seamless and hassle-free.
- Arrange basic documents of Partners
- Fill in an online form with accurate information
- Apply for Digital Signature and DIN of Partners
- Prepare all legal documents
- Apply to name availability of the proposed Private Limited Company
- Verification of all documents and forms by govt
- File Incorporation Docs with ROC
- Get Private Limited Company Incorporation Certificate
- Drafting of Private Limited Company Agreement
- Filing of Private Limited Company Agreement
step 1: obtaining dsc and din
The first step is to obtain DSC of the desired partners of the Online Term Sheet Agreement . The reason for this is that all the forms need to be submitted online and require the directors' digital signatures.
The law also requires that all directors file for a DIN number. The application has to be made in Form DIR- 3.
step 2: application for name approval
This process involves registering the Private Limited Company. Before you do this, you would need to see if the name is already taken. You can check on the free search facility on the MCA portal. The registrar only approves Private Limited Company names that are not taken before.
step 3: Private Limited Company agreement
Private Limited Company agreement is very crucial in a Online Term Sheet Agreement as it determines the mutual rights and duties amongst the partners, and between the Private Limited Company and the partners. The partners enter into the Private Limited Company agreement upon the Private Limited Company registration by filing form 3 online on the MCA portal. This procedure has to be done within 30 days of the date of incorporation.
step 4: Private Limited Company incorporation certificate
Once the registrar approves your MOA and AOA, you’re steps closer to getting your Private Limited Company registered. The next step is to get the Private Limited Company Incorporation Certificate. You can do by submitting all documents to the registrar. The time frame is between 2- 12 days. Once you get your Private Limited Company Incorporation Certificate, you’re ready to go.
step 5: apply for pan & tan & bank account
As soon as you get the incorporation certificate, you need to apply for your company PAN & TAN with the NSDL. The cost for this procedure is less than Rs.200 and it takes around three weeks to get done.
Documents required for Private Limited Company registration in India
The method of Private Limited Company registration in India does not require much legwork when it comes to documents.
to be submitted by partners
- Scanned copy of PAN Card or passport (Foreign Nationals & NRIs)
- Scanned copy of Aadhar Card/ Voter's ID/Passport/Driver's License
- Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
- Scanned passport-sized photograph Specimen signature (blank document with signature [partners only])
Note: Any one of the partners must self-attest the first three documents. In the case of foreign nationals and NRIs, all the documents must be notarized (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).
for the registered office
- Scanned copy of latest bank statement/telephone or mobile bill/electricity or gas Bill
- Scanned copy of Notarised Rental Agreement in English
- Scanned copy of No-objection Certificate from the property owner
- Scanned copy of Sale Deed/Property Deed in English (in case of owned property)
Note: Note: Your registered office need not be a commercial space; it can be your residence, too.
Check if your firm qualifies for Private Limited Company in India
For any form of business, certain specific requirements must be fulfilled to be eligible for registering as an Private Limited Company. Any business who has:
- A minimum of two partners. There is no limit to the maximum number of partners
- The nomination of a natural person, if a body corporate is a Partner
- No shared capital requirement, though each partner has to contribute towards it.
- Minimum capital contribution: There is no minimum capital requirement for an Private Limited Company (or a company, for that matter). The Private Limited Company should have an authorized capital of at least Rs. 1 lakh.
- At least one Designated Partner as an Indian resident
- DPIN (Director Identification Number) for all Partners
- DSC (Digital Signature Certificate) for all the Designated Partners
- Address proof for the office of Private Limited Company. The registered office of an Private Limited Company does not have to be a commercial space. Even a rented home can be the registered office, so long as an NoC is obtained from the landlord.
Factors to consider while selecting an Private Limited Company Name
The Registrar of Companies (RoC) has issued naming guidelines for Private Limited Companys. It is essential that you follow the rules closely or your application may end up getting rejected, leading to a much longer process.
In AlphaBeta Internet Private Limited, AlphaBeta is the unique component. Now, once taken, the name will not be given to any other business in categories related to the Internet.
Abbreviations, adjectives and generic words are rejected. So XYZ would be rejected, as would Good Quality Biscuits. The words bank, exchange and stock exchange, unless approved by RBI or SEBI, would also be rejected.
no common trademark:
There should not be a registered trademark by the same name on the IP India website. If there is one, the name can only be approved if you are able to get a No-Objection Certificate from its owner authorising you to use it.
In Biocon Research Private Limited, the word 'Research' describes the business the company is into. You cannot have 'Research' in your name if you're, say, in the logistics or restaurant business.
Why Our Private Limited Company Package?
Finleg is cognizant of the new process. For years, we have helped many entrepreneurs, financial advisories, ad agencies register their businesses as Private Limited Company India. From Chennai to Bangalore to Mumbai and more, our Private Limited Company services are comprehensive and reach every corner of the country.
With Finleg, registering an Private Limited Company is one of the most easiest processes in India. We make the entire compliance procedure simple and give our best efforts to complete the process at the earliest time as possible. When you choose us to be your partner to register Private Limited Company, you get to avail a few undeniable benefits.
- DSC for one director and DIN for up to three directors
- Drafting of MoA & AoA
- Registration fees and stamp duty
- Company Incorporation Certificate
We also provide assistance with:
- A first free consultation, followed by subsequent meetings to clear every concern you may face.
- Complete support on opening a Current Bank Account
- Comprehensive and on-time updates on ROC compliances.
- Online Accounting Software valid for one year.
- A Master file that contains all the documented needed to file the incorporation.
- A Dedicated service manager is present at all times.
- Being a seperate legal entity from the existing partnership firm, Private Limited Company will have its unique name pan card so it is required a new/separate GST Registration on the name of Private Limited Company
- You will also get Zero Balance Current Account - Powered by DBS Bank *
FAQs on Private Limited Company Registration?
Any individual, or even a company or an Private Limited Company, can become a partner. However, only an individual can become a ‘designated partner’ in an Private Limited Company.
Yes, non-resident Indians and foreign nationals who are willing to enter into an Private Limited Company partnership can do so, provided they submit the necessary documents after getting it notarized by the concerned authorities. Although, at least one of the designated partners in an Private Limited Company should be an Indian national.
Any group of persons who have or want to invest money in a business can start an Private Limited Company. A person or an investor becomes a partner, according to the Private Limited Company agreement, as provided in the Act of 2008. Also, the investors/partners are owners of the business started under the Private Limited Company.
Online Term Sheet Agreement
One Person Company
Private Limited Company
|Professional services firms||Solo promoters||Start-ups and growing companies||Home businesses||Small manufacturers & traders|
Ease of Accommodating Investment
|Possible, but unlikely||Possible, but severely unlikely||Very easy to accommodate||Almost impossible||Impossible|
Limited Liability Protection
|Most efficient||Few benefits||Few benefits||Minimal||Minimal|
|Learn More||Learn More||Learn More||Learn More|