For doing business activities, to create a private limited company in Ghaziabad, Uttar Pradesh is a very good option. In Ghaziabad, Uttar Pradesh, private limited companies are registered under the MCA (Ministry of Corporate Affairs). A private limited company in Ghaziabad, Uttar Pradesh is a company in which the liabilities of the members/shareholders are limited and the business of the entity is in the hands of private shareholders or stakeholders. For the registration of a private limited company, there is the requirement of a minimum of 2 persons, who will act as directors and shareholders of the entity and there is also the requirement of address proof of the registered office, bank statement, Directors PAN number and directors address proof, etc.

In this article, we will discuss the following points about the private limited company-

  1. What is a Private Limited Company?
  2. Types of Private Limited Company

Requirements for the registration of Private Limited Company in Ghaziabad, Uttar Pradesh

  1. What are the benefits of the registration of a private limited company in Ghaziabad, Uttar Pradesh?
  2. What are the documents required to register as a private limited company in Ghaziabad, Uttar Pradesh?
  3. How to register a private limited company in Ghaziabad, Uttar Pradesh?

What is a Private Limited Company in Ghaziabad, Uttar Pradesh?

As per section 2 (68) of the companies act 2013, the private limited company means-

A company having a minimum paid- up share capital as may be prescribed, and which by its articles-

  • Restricts the right to transfer its shares;
  • Except in the case of the one person company, limits of the number of its members to two hundred;
  • Prohibits any invitation to the public to subscribe to any securities of the company.

As per this definition, the private limited company cannot issue its shares publicly and the minimum shareholders should be 2 and maximum of 200, and the liabilities of the shareholders are limited.

Types of Private Limited Company in Ghaziabad, Uttar Pradesh

  1. Company limited by Shares
  2. Company limited by Guarantee
  3. Unlimited Company

Company limited by Shares

A company limited by Shares is a company where the liabilities of the members are limited to the nominal value of the shares which is mentioned in the Memorandum of Association (MOA). In this company, the member will be liable only for her/his capital which is invested by her/him in the company means he/she will not pay more than his/her invested share capital.

Company limited by Guarantee

Company limited by Guarantee means where the liabilities of the shareholders are limited to the amount of liability which is mentioned in the Memorandum of Association (MOA) of the company.

Unlimited Company

Unlimited Company is a company where the liabilities of the members are not limited. The liability of each and every member extends over the entire amount of debts and liability of the company.

Requirements for the registration of a Private Limited Company in Ghaziabad, Uttar Pradesh

The following requirements are required for the registration of a Private Limited Company in Ghaziabad, Uttar Pradesh

  • Directors- For the registration of a private limited company in Ghaziabad, Uttar Pradesh, there should be at least 2 directors. Every director of the company should have the DIN (Directors Identification Number). At least one director should be a resident of Ghaziabad, Uttar Pradesh.
  • Members- For the registration of a private limited company in Ghaziabad, Uttar Pradesh, there should be at least 2 members and the maximum number of members should not be more than 200 in the case of a private limited company.
  • Unique Name- For the registration of a private limited company in Ghaziabad, Uttar Pradesh, the name of the company should be unique. At the time of registration, the company has to send a minimum of 5-6 names for approval to the ROC (Register of Company) and the Register of Company (ROC) will approve one unique name out of these 5-6 names. All the private limited companies will use “Private Limited” at the end of their company name.
  • DSC (Digital Signature Certificate) – Each director of the company will obtain the digital signature certificate (DSC). Now each and every document is required to be file online. For submitting online documents it should be digitally signed by the directors of the company.
  • Professional Certificate- For the registration of a private limited company in Ghaziabad, Uttar Pradesh, there is the requirement of a certificate of the professional. Such professionals may be Chartered Accountant, Company Secretary, Cost Accountant, etc. as per the requirement.

What are the benefits of the registration of a Private limited company in Ghaziabad, Uttar Pradesh?

Now we will discuss what the benefits are when we register an entity as a Private Limited Company in Ghaziabad, Uttar Pradesh.

  • Limited Ownership– In the case of a private limited company in Ghaziabad, Uttar Pradesh, we cannot issue the shares publicly so the shares are owned by the management, founders,and investors. The owners of these shares are free to transfer and sell their shares to others.
  • Separate Legal Entity– The Company is a separate legal entity and it is incorporated under the Companies Act 2013. The company is separate from its members.
  • Limited Liability– In the case of a private limited company, the liability of the shareholders are limited. It mean that if the company fails and there is the requirement to close the company, the shareholders will be liable to pay for companies liabilities only to the extent of their contribution which is made by them, they will not have any personal liability and they will not pay any liability of the company from their assets.
  • Minimum Capital Contribution– In the case of a private limited company, there is the requirement of a minimum of 1 lakh as authorized share capital for the registration.
  • Less Number of Shareholders– In the case of a private limited company, there is the requirement of a minimum of 2 members i.e. only with the 2 members we can start a private limited company.
  • Uninterrupted and Continue Existence– The private limited company is a legal entity and it goes forever till the date of legally shut down i.e. member may go and the member may come but the company goes forever.
  • Borrowing– The banks and financial institutions provide financial help to the private limited companies in comparison to partnership firms and one – person companies (OPC).
  • Long term Planning– The private limited company does not have any market pressure so it can focus on long- term planning.
  • Easy Exit– In Ghaziabad, Uttar Pradesh, the private limited company can be sold or transfer partially as well as fully to an individual or any other legal entity without disturbing the current business activities.
  • Information Availability- In the case of a private limited company, most of the information is available to the register of the company. The customers, vendors, creditors, employees, and other users can collect the information about the company as per their requirements. The information just like the name of directors, the registered office of the company, authorized capital of the company, and master data of the company are available on ROC.
  • Legal Formalities- In the case of a private limited company, the list of legal formalities is very short due to this the registration of a private limited company is less expensive.
  • Management & Decision Making- In the case of a private limited company, the number of members is very less so the management and the decision making in the private limited company is less complex.
  • Easy Transfer of Shares- In the case of a private limited company, the shareholders can easily transfer their shares to another person.
  • FDI allows-For the private limited company, 100% FDI (Foreign Direct Investment) is allowed i.e. any foreign entity or foreign person can invest in a private limited company.

What are the documents required to register as a Private limited company in Ghaziabad, Uttar Pradesh?

For the registration of a private limited company in Ghaziabad, Uttar Pradesh, the following documents are required-

  • PAN Card of the Directors– For the registration of a private limited company in Ghaziabad, Uttar Pradesh, the PAN card of the proposed directors is required.
  • Address Proof of the Directors- For the registration of a private limited company in Ghaziabad, Uttar Pradesh, there is the requirement to address proof of the directors. The address proof of the director must contain the name of the director as per PAN the current address of the director. As an address proof, we can submit an Aadhaar card,or driving license, or voter ID.
  • Residential Proof of the Directors- For the registration of a private limited company in Ghaziabad, Uttar Pradesh, there is also the requirement of residential proof of the directors. The residential address proof of the director must contain the name of the director as per PAN and it should not be older than 2 months. For the residential proof, we can provide a bank statement or electricity bill, or telephone bill.
  • Registered Office Proof- For the registration of a private limited company in Ghaziabad, Uttar Pradesh, there is the requirement of proof of registered office. If the registered office is owned property, a copy of the sale deed or property deed is required but if the registered office is a rented property, a notarized rent agreement and no- objection certificate (NOC) from the property owner is required. The proof of registered office should be in the name of the company.
  • Passport size photograph and signatures of the directors and shareholders
  • PAN Card of the company
  • MOA (Memorandum of Association) and AOA (Articles of Association) of the company
  • Contact details of the directors & shareholders of the company
  • Email address of the directors & shareholders of the company
  • Business details of the directors & shareholders of the company

How to register a Private Limited Company in Ghaziabad, Uttar Pradesh

For the registration of a private limited company in Ghaziabad, Uttar Pradesh, the following steps are given below-

  • Step No.-1- Obtain Digital Signatures Certificates (DSC)
  • Step No.-2- Apply for Directors Identification No. (DIN)
  • Step No.-3- Check Name availability and name approval
  • Step No.-4- Form SPICe+ form INC-32
  • Step No.-5- Submission of E-MOA & E-AOA
  • Step No.-6- TAN & PAN Application of the company
  • Step No.-7- ROC issues a Certificate of Incorporation with TAN & PAN

Now we will discuss all these steps for the registration of a private limited company in Ghaziabad, Uttar Pradesh in the detail-

  • Step No.-1- Obtain Digital Signatures Certificates (DSC)– For the online formation of a private limited company, there is the requirement of Digital Signatures. The digital signatures are required for all the witnesses and subscribers in MOA(Memorandum of Association) and AOA (Articles of Association). There is the different – different categoryof digital signatures but for the registration of a private limited company, we will obtain class 3rd category of digital signatures.
  • Step No.-2- Apply for Directors Identification Number. (DIN)- The person who wants to be the director of the company will apply for the DIN (Directors Identification Number).
  • Step No.-3- Check Name availability and name approval– You will apply for the name of the organization. The name should be unique. For the name, you will file form SPICe+ and provide all the required and relevant details.
  • Step No.-4- Form SPICe+ form INC-32- MCA has introduced a new form SPICe+ for the registration of a private limited company in Ghaziabad, Uttar Pradesh from 23rd February 2020. When the name was approved, we will click on the link of name approval and we will complete the incorporation application and provide all the relevant and required information for the registration of the private limited company.
  • Step No.-5- Submission of E-MOA & E-AOA – Before the introduction of form SPICe+ the MOA & AOA are required to submit physically but now Memorandum of Association (MOA) and Articles of Association (AOA) is required to be submitted online. Both Memorandum of Association (MOA) and Articles of Association (AOA) are required to be signed. Memorandum of Association (MOA) represents the charter of the company and Articles of Association (AOA) provide the details of internal rules & regulations of the organization.
  • Step No.-6- TAN & PAN Application of the company- By the use of form SPICe+ we can also apply for the PAN & TAN of the company. For such an application, we will provide all the required and relevant details as per the requirement.
  • Step No.-7- ROC issues a Certificate of Incorporation with TAN & PAN- After applying for TAN & PAN and after submitting the form SPICe+, the register of the company (ROC) will issue a Certificate of Incorporation of the company with the PAN and TAN.
  • Step No. 8- Opening a Current Bank Account- At the final stage, the person will open a current bank account t in the name of a private limited company. The opening of a current bank account is mandatory for the day to day business transactions.

FAQ on the Private Limited Company in Ghaziabad, Uttar Pradesh

What is the meaning Private Limited Company in Ghaziabad, Uttar Pradesh?

Answer- Private limited company in Ghaziabad, Uttar Pradesh means,

  • Which cannot issue its shares publicly?
  • It is a separate legal entity.
  • To start the business there is the requirement of a minimum of 2 members and a maximum of 200 members.
  • The liability of the members is limited.
  • To start the business there is the requirement of the minimum amount of capital contribution.

What is Director’s Identification Number (DIN)?

Answer- If there is any individual who wants to be the director of the private limited company, he must apply for the DIN. He will file Form SPICe and provide all the relevant details and required documents. He will submit address proof, identity proof, residential address proof, and passport size photograph along with the amount of fee. It is will the time of 3-4 days for the approval. By the use of such signal DIN, you can register as a director in any company in Ghaziabad, Uttar Pradesh.

Can be registered a small business as a private limited company in Ghaziabad, Uttar Pradesh?

Answer- Yes, a small business can be registered as a private limited company in Ghaziabad, Uttar Pradesh. The status of the private limited company is very suitable for small businesses because it will provide a legal existence, and image in the eyes of law, banks, financial institutions, suppliers, and customers. When any small business is registered as a private limited company, it can get the loans from the banks and financial institutions.

Any higher qualification is required to become a director or a shareholder in a company in Ghaziabad, Uttar Pradesh?

Answer- No, to become a director or a shareholder of a company there is no need for any professional or educational qualification. If there is an individual who wants to start a private limited company, can start without any professional or education qualification but he should

  • Citizen of Ghaziabad, Uttar Pradesh.
  • Have a sound mind.
  • Major not minor.

Can a sole proprietorship concern be converted into a private limited company in Ghaziabad, Uttar Pradesh?

Answer- yes, if a person is working as a proprietorship concern and wants to convert proprietorship concern into a private limited company, he can convert it according to the provisions of the Companies Act 2013.

What will be the address of the registered office?

Answer- A registered office is a place which is used for conducting the meeting of the company, keeping the books of accounts and other records, and receiving the correspondences for the government. The registered office of a private limited company may be its own premise or it may be a rented property.

Can we change the address of the registered office?

Answer- Yes, if there is any person who wants to change the address of the registered office, he can change at any time and for this, he will complete the procedure which is specified in the Companies Act 2013.

Does a foreign entity become the director or the shareholder of a private limited company in Ghaziabad, Uttar Pradesh?

Answer- Yes, a foreign entity and non-resident person (NRI) can become a director or the shareholder of a private limited company in Ghaziabad, Uttar Pradesh.

Can a private limited company make FDIs in Ghaziabad, Uttar Pradesh?

Answer- Yes, a private limited company can accept direct foreign investments.

What is the process of registration of a private limited company in Ghaziabad, Uttar Pradesh?

Answer- The process of registration of a private limited company in Ghaziabad, Uttar Pradesh is as follow-

  1. Apply and obtain DSC (Digital Signatures Certificates),which is required to sign the company registration forms.
  2. Apply and obtain DIN (Directors Identification Number).
  3. Apply for the name of the company in part A of the Form SPICe+.
  4. File all the required documents just like MOA, AOA, identity proof, address proofs, PAN of directors and shareholders, TAN of the company, and other relevant documents.
  5. When we submit form SPICe+ with all the relevant details and required documents then after the verification the ROC will issue an incorporation certificate.
  6. Open a current bank account.

How many directors are required for the registration of a private limited company in Ghaziabad, Uttar Pradesh?

Answer- To start a private limited company, there is the requirement of a minimum of 2 directors.

Can a private limited company in Ghaziabad, Uttar Pradesh issue the shares publicly?

Answer- No, a private limited company cannot issue its shares publicly.

What forms are required for the registration of a private limited company in Ghaziabad, Uttar Pradesh?

Answer- Form SPICe+ is introduced by the ministry of corporate affairs for the faster and easy registration of a company. With the form, the entity will submit e-MOA and e- AOA. Form-1 Declaration of compliance requirement, Form- 18, and Form-32 are also required to file by the entity.

What are the benefits to be registered as a private limited company in Ghaziabad, Uttar Pradesh?

Answer- There are many benefits if any person registered as a private limited company, these benefits are-

  1. Limited liability of the members.
  2. Separate Legal Entity.
  3. Perpetual Succession.
  4. Lower Legal Formalities.
  5. Minimum Capital Requirement.
  6. Easy Share Transferability.
  7. Uninterrupted Existence.
  8. Easy Funding.
  9. Less Number of Members Required.
  10. Accept FDIs.

What are the terms & conditions to use PVT LTD with the name of the entity in Ghaziabad, Uttar Pradesh?

Answer- If there is an organization that is registered as a private limited company then it can use PVT LTD other than a private limited company no one can use this word. If you want to use PVT LTD with the name of the entity, the entity should be registered as a private limited company in Ghaziabad, Uttar Pradesh.