If you are a small business that does not have any more than 200 shareholders and you limit your owner liability to your shareholdings, you are eligible to register your company as a Pvt. Ltd company. For people who intend to enjoy the benefits that an incorporated entity does while making a profit with limited liability, then taking steps to do Pvt ltd company registration in Kerala is the best thing you could do.
Benefits of Registering Your Company as a Pvt Ltd in Kerala
Pvt Ltd Company Registration in India is not only an easy process but also has several benefits too. If you are to register your company as a Pvt ltd, instead of a sole proprietorship firm, here are some of the benefits that you will get to enjoy:
- Limited Liability: You can compartmentalize between your personal and company assets when you register your company as a Pvt ltd instead of running it as a sole proprietorship firm. Since your company will act as a separate legal entity, all the assets, profits, and liability will belong to the company, not directly affecting your personal assets. So, if your company is in financial trouble for some unfortunate reason, it will help you protect your personal effects.
- Uninterrupted Existence: Since registering your company as a Pvt Ltd requires more than two shareholders, your company will not cease to exist even when someone leaves the company or dies. It will still be there as long as you don't legally dissolve it, so registering it as Pvt ltd is the safe thing to do.
- Tax-Efficient: One of the many reasons why small businesses prefer to register their company as a Pvt Ltd is because of the tax efficiency. While Pvt ltd only pays taxes on their profits, sole traders are required to pay income tax on all of their taxable earnings that too in higher slabs than Pvt Ltd.
The Private Limited Company Registration Process in Kerala
The private limited company registration process in Kerala is simple and effective when you have all the required documents with you. Therefore, when you are planning to register as a Pvt ltd company in Kerala, here are the documents you should keep ready in hand to ensure a smooth registration:
- ID proofs of all the Indian and foreign directors (if any), such as PAN cards and passports.
- A form of address proof, including but not limited to Voter Card, Driver's license, Aadhar Card, Ration Card, etc.
- Bank statement or electricity bill of the office premise to provide as proof of residence.
- Notarised rental agreement of the office space.
- A NOC letter from the property owner from whom you are renting the office premise.
- If you own the property, you will be required to provide a copy of the sale or property deed.
Having these documents with you will make the private limited company registration process in Kerala a walk in the park.
The process of registering your company as a Private Limited will start with finalising a name for your company. If you do not have the name you are planning to stick with, you should finalise it first. Once you have the name, follow these next steps to register your company finally:
- Apply for the Digital Signature Certificate or DSC; you cannot move forward without it. You can get your digital signature certificate at the Ministry of Corporate Affairs (MCA) website.
- Apply for a Director Identification Number or DIN, which is another crucial aspect of the process.
- Apply to check if the company name you have finalised is available to register; if not, you will have to find another name. If the name is available, you will have to apply to get approval to use it.
- The next thing you should do is file eMOA and eAOA so that you can successfully register for Pvt Ltd company.
- Do not forget to apply for the PAN and TAN of your small company to enjoy the tax benefits.
- Once you provide all of it to the respective Registrar of Company, they will provide you with the certificate of incorporation.
- Now you will be able to apply for a current bank account for your company.
While it seems like an easy process if you have never had experience registering a company as a Pvt ltd before, it might seem confusing. A lot of documents and applications go into company registration, which is why hiring a company to help you out is probably the best idea. Moreover, since the Government of India often keeps changing the requirement to apply for Pvt Ltd registration, like how they have recently started requiring SPICe+ (INC 32) form, it is vital to stay updated about the industry.
If you are struggling to register your company, you can now get a free consultation call with My Legal Clinic representative at +91-9999525889 and discuss your requirements.