Private Limited Company Registration in Chennai
One of the most common business registrations among small, medium, and large firms in India is a private company registration. Private company registration is a common choice for new enterprises and those with higher growth aspirations when choosing a business structure.
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Private Limited Company Registration in Chennai
A Private Limited Company is a type of business entity that is widely used in India. According to Section 2 (68) of the Companies Act 2013, a Private Limited Company is a company incorporated under the Indian Companies Act 2013, with a minimum of two members (except for one person Company) and a maximum of 200 members. Generally, the shares of such companies are not freely transferable and they cannot invite the public to invest in their securities.
Benefits of Private Limited Company Registration in Chennai
- Limited Liability: One of the biggest advantages of registering a private limited company Registration in Chennai is that it offers limited liability protection to its shareholders. This means that the shareholders are not personally liable for the debts and liabilities of the company. This provides a great sense of security to the shareholders as they are not liable for any losses incurred by the company.
- Separate Legal Entity: A private limited company is a separate legal entity from its shareholders and directors. This means that the company can enter into contracts, own property, and sue or be sued in its own name. This provides a great degree of flexibility and autonomy to the company.
- Easy to Raise Capital: Private limited companies are much easier to raise capital for than other forms of business entities. This is because investors are more likely to invest in a company with limited liability protection than one without it.
- Tax Benefits: Private limited companies are eligible for certain tax benefits such as lower corporate tax rates and exemptions from certain taxes. This can help the company save money and increase its profits.
- Professionalism: Registering a private limited company Registration in Chennai gives your business a professional image which can help you attract more customers and investors. It also helps you build trust with your customers and partners as they know that you are a legitimate business entity.
Checklist for Private Limited Company Registration In Chennai
- Obtain Digital Signature Certificate (DSC)
- Apply for Director Identification Number (DIN)
- Obtain Name Approval from the Ministry of Corporate Affairs (MCA)
- Draft Memorandum of Association (MOA) and Articles of Association (AOA)
- File Incorporation Documents with the Registrar of Companies (ROC)
- Obtain Certificate of Incorporation
- Open a Current Bank Account in the name of the Company
- Obtain PAN and TAN for the Company
- Obtain Professional Tax Registration Certificate
- Obtain Shop and Establishment License
- Obtain GST Registration Certificate
Documents Required for Private Limited Company Registration In Chennai
For each director and shareholder:
- PAN Card of the Directors
- Address Proof of the Directors (Aadhar Card, Voter ID, Passport, or Driving License)
- Digital Signature Certificate (DSC) of the Directors
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Bank Account Information
- Incorporation Certificate
For a new company's address proof:
- Telephone/Electricity Bill (not older than 2 months)
- Title Deed/Proof of Ownership for Owned Property
- Rental Agreement for Rented Property
- No Objection Certificate (NOC) for Rented Property
Additional Requirements for Foreign Nationals company Registration In Chennai
- A copy of the passport and visa of the foreign national.
- A copy of the residence permit or work permit of the foreign national.
- A copy of the business license or other relevant documents of the foreign national.
- A copy of the bank statement or other financial documents of the foreign national.
- A copy of the tax registration certificate of the foreign national.
- A copy of the company registration certificate of the foreign national.
- A copy of the Articles of Association or other corporate documents of the foreign national.
- A copy of the business plan or other relevant documents of the foreign national.
- A copy of the business license or other relevant documents of the foreign national.
- A copy of the identification document (ID card, passport, etc.) of the legal representative of the foreign national.
Process for Register a Private Limited Company in Chennai
- Obtain Digital Signature Certificate (DSC): The first step to register a private limited company in Chennai is to obtain a Digital Signature Certificate (DSC). This is a digital certificate issued by the Controller of Certifying Authorities (CCA) of India. It is used to authenticate the identity of the person who is registering the company.
- Apply for Director Identification Number (DIN): The next step is to apply for a Director Identification Number (DIN). This is a unique number assigned to each director of the company. It is used to identify the director and verify his/her identity.
- File Incorporation Documents: After obtaining the DSC and DIN, you need to file the incorporation documents with the Registrar of Companies (ROC). These documents include the Memorandum of Association (MOA) and Articles of Association (AOA).
- Obtain PAN and TAN: Once the incorporation documents are filed, you need to obtain a Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) from the Income Tax Department.
- Open a Bank Account: The next step is to open a bank account in the name of the company. This will be used for all financial transactions related to the company.
- Register for GST: If your company is engaged in any kind of business activity, then you need to register for Goods and Services Tax (GST). This will enable you to collect GST from your customers and pay it to the government.
- Obtain Other Licenses: Depending on your business activities, you may need to obtain other licenses such as shop and establishment license, food license, etc. from the local authorities.
Our Support
Intellecto Filings provides comprehensive services for registering a private company in India. Our team of experts will assist you in obtaining DSCs, applying for DINs, drafting incorporation documents, filing incorporation documents with the MCA, and obtaining a Certificate of Incorporation. We also provide post-incorporation services such as opening a bank account, obtaining PAN and TAN numbers, etc. Contact us today for more information about our services!
FAQ
What is the rate of tax for private limited company?
Domestic Private limited companies are subject to a flat rate of income tax of 25% if their gross receipts do not exceed 50 crores. If the gross receipts exceed 50 crores, the rate of tax is 30%. Tax is calculated on income after directors’ remuneration, so with proper tax planning and compliance, no additional tax is lost.
How can we get additional investment for company?
A private limited company is suitable for small and medium scale businesses and cannot issue shares to the public. However, it can seek investments from a closed group such as relatives, friends, and venture capitalists, subject to the conditions prescribed by the Companies Act. The company can issue shares to these persons in exchange for the amount invested. Caution should be taken to avoid seeking investments from the public.
How to maintain books of accounts for private limited company?
The first step in maintaining books of accounts for a private limited company is to set up a chart of accounts. This is a list of all the accounts that the company will use to record its financial transactions. The chart of accounts should include all the necessary accounts such as assets, liabilities, income, expenses, and equity.
Can I have a registered place for the company at the residential place?
Yes, it is possible to register a Private Company at either a commercial or residential address. All that is required is to provide sufficient proof of the address. This registered office will be the place where the business receives all official communication from the Ministry of Corporate Affairs or any other relevant authorities. Additionally, the address will be displayed on the Ministry’s portal.
Can I use my residential address in Chennai as the registered office address of a company?
Yes, it is possible to use a residential address in Chennai as the registered office address of a company. However, it may be subject to property tax applicable to commercial properties if the residential property is used for commercial purposes. In such a case, an NOC (No Objection Certificate) from the owner of the property may be required.