Why Private Limited Company Registration and Tax Compliance is Required

Is the business a part of your future plans? If yes then there is a lot to know before you take further steps. Once you are done choosing the type of business you are interested in, next it is time to register your business. You will be getting the answer to why private limited company registration and tax compliance are required for business.

What is a private limited company?

A private limited company is one of the most renowned types of registration and it is chosen by thousands of entrepreneurs for commencing their business. It offers great adaptability, flexibility, limited liability, and also a great scope for expanding a business.

Requirement of Private Limited Company Registration

While you are planning to get into business it is mandatory to register a private limited company to ensure that the business is legal as per rule of the Government of India. Here are some reasons why it is important to register a Pvt Ltd company.

1.    Lack of Personal Liability

Yes, it is true that while you are registering a business as a private limited company the business gets a legal entity of its own. Moreover, it also gets registered as a juristic person under the Companies Act, 2013. Once your business gets registered a company there is no such personalities of the directors and the shareholders for the debt of the company to the creditors of the company.

2.    Going Large Scale

By formation of private limited company, it provides access to foreign organizations and investors a chance to invest in an organization without the approval of the government. It also makes it easy for entrepreneurs to go on a world wide scale. If you are looking forward to be an entrepreneur then it is always beneficial to have Incorporation of private limited company.

Process of Registering a Private Limited Company

While we scroll across the internet a very common question that comes up from the entrepreneurs is How To Register Private Limited Company? Here is the process of formation of private limited company.

1. Obtain DSC (Digital Signature)

Digital signature is required to fill the forms for incorporating a company. The process is conducted online and the forms need a digital signature certificate. The DSC is required to be recognized by a certified authority.

2. Application for DIN

DIN is an identification number for a director. Anyone who wants to be a director in a company needs to have a DIN. While you are way for applying the DIN there are 3 ways of getting it and they are as follows,

• Form DIR3 :- This form is for individuals who are willing to be a director in an existing company. For filling this form there si a need of identity proofs like Aadhar card, PAN,etc. Along with it address proof is also required.

• SPICe+ :- By filling this the DIN number for those who do not have a DIN. Through SPICe+ (INC 32), maximum of three directors can apply for their DIN.
• Companies like One Click Business Solutions are here for your support to provide assistance on the entire procedure of registering a private limited company.

3. Name approval

The next step in this procedure is to approve the name of the company. In this part there is a need of filling up the form PART-A of the SPICe+ Form. The Ministry of Corporate Affairs has instructed to fill SPICe+ web service for registering a company.

• DIN and DSC are not required for filling of SPICe+ form reserving the name. Another method for name approval is by filling Part-A and Part-B of SPICe form at a same time.

4. Form SPICe+ (INC-32)

MCA has introduced Form SPICe+ for the incorporation of new organisations from 23February 2020. The registration under Part-B of the SPICe+ form is conducted online. The Part B of the new SPICe+ form allows online registration and delivers the following reasons with the benefits of a single application.

• Application for DIN
• Company’s name reservation
• Registering a new company
• Application TAN and PAN is mandatory
• Application for EPF registration is mandatory
• Application for opening a bank account in the name of the company is important.
• GSTIN is applied if desired

5. Moa and AoA

These forms have been introduced by the government of India to simplify the method of incorporating a company. The MoA signifies the character of the organization and AoA consist the rules and regulations that are set the company.

6. PAN and TAN

The SPICe+ form also allows you to apply for the company’s TAN and PAN. the certificate of incorporation of PLC is issued along with PAN as mentioned by the income tax department of India once the SPICe+ form. If all the mentioned details are accurate the MCA will confirm the registration and a CIN will be provided. The MCA portal can also be followed from the MCA portal.

This was the process of private limited company registration. If you are also willing to establish a business of your own, it is important that you register your business as a private limited company and also fall under the tax compliance for enjoying the benefits and securities of a registered business.

One click business solutions provides you the assistance in the entire process of establishing a business. Do not worry about the price of our service as we work at an affordable and competitive Private Ltd Company Registration Fees and are way away from secret charges. To know more on How to Manage Pvt Ltd Company visit our website or contact us on the mentioned details for the best service of company registration & Tax Compliance Services.