How to Register a Private Limited Company in Coimbatore?

A private limited company is the most preferred business by the public due to its benefits including limited liability, protection of your assets, and being a separate legal entity. It also boosts the credibility of the business in the market as it’s become easy to approach the investor to invest in a private limited company as compared to other companies. If you want to start a new business in Coimbatore then registering as a private limited company is an ideal option as it provides flexibility and scalability in the business.

Benefits of Company Registration in India

Limited liability: If a Private Limited Company faces a financial crisis then you don’t need to worry about it as only the company is responsible for its debts and liability instead of the shareholder’s assets.
Separate Legal Entity: Another benefit is having a separate legal entity from other companies. It means that the company can be involved in contracts, own assets, incur debts, and sue or be sued apart from the shareholders. Having a separate legal identity enhances the credibility and reputation of the company.
Gathering of Funds: In Private limited companies, it becomes easier to collect funds than a sole proprietorships or partnerships firm. It can also smoothly get loans from bank accounts as it is considered a more trustworthy company than others.
Credibility and Trust: A private limited company has strong credibility among customers, suppliers, and other stakeholders. It is considered a more reliable entity as compared to others. It can be beneficial for building a strong reputation in the market.
Tax Benefits: By registering as a private limited company, you can enjoy various benefits offered by the government such as Tax reduction on the expansion of the company, benefits on capital profits, and lower tax rates for small entities. You can take advantage of tax savings for the company and its shareholders.
Confidentiality and Privacy: Private limited companies keep the information of the shareholders or directors private and confidential as it can’t be announced publicly. In this, it is important to maintain the privacy of the business objectives and operations.
Great Management Control: Private limited companies have good management control as directors and managers effectively manage the day-to-day activity of the business.
Employee Motivation: Private limited companies often offer employee stock option plans (ESOPs) to attract and retain talented employees. It enables employees to become shareholders of the company, aligning their interests with the overall success and growth of the business.
Ease of Ownership Transfer: In a private limited company, you can easily transfer your shares with others as it offers flexibility and ease of ownership transfer.
Perpetual Existence: A private limited company offers perpetual existence, it means that the company does not exist in case the shareholder leaves the company or dies. The company will continue to work as it worked before.

Eligibility Criteria for Company Registration in Coimbatore

The following are the eligibility criteria for a Private Limited Company in Coimbatore:

In a Private Limited company, there should be at least 2 shareholders and 2 directors and both the shareholders and directors can be the same persons.
All businesses must have a registered office address from where they will conduct their business;
All the directors required a Digital Signature Certificate (DSC) and (DIN) Director Identification Number.
The owners of the company will have to draft the required legal documents such as MoA, AoA, and shareholders Agreement.
At least one Director of the company should be an Indian Resident i.e., he or she must have stayed in India for at least 182 days in the last year.

Procedures of the Private Limited Registration in India:

Are you seeking to register your company as a private limited company in Coimbatore? If yes then it might seem difficult due to complex procedures and many rules to follow. But you don't need to worry about it as you can easily register as a private limited company by following these steps:

Step 1: Apply for a Digital Signature Certificate (DSC): For a private limited company, it is necessary to obtain a Digital Signature Certificate. A digital signature needs the company's Memorandum of Association (MOA) and Articles of Association.
Step 2: Obtain (DIN): DIN stands for Director Identification Number. It is essential to become a director of a company. There are three ways to obtain it, such as filing specific forms or seeking help from expert services.
Step 3: Approval of the name : You need to choose the company’s name by keeping in mind that the name should be unique and different from other companies. You can use the SPICe+ form or apply for both name approval and incorporation together.
Step 4: Fill Form SPICe+ (INC-32): SPICe+ (INC-32) simplifies the incorporation process. It helps with name reservation, company incorporation, and applying for PAN, TAN, and other registrations.
Step 5: e-MoA and e-AoA: These electronic forms replace the physical filing of Memorandum and Articles of Association. They must be digitally signed by the directors of the company.
Step 6: Apply for PAN and TAN: You can apply for the company's PAN and TAN through the SPICe+ form. Once your application gets approved, you'll get a Certificate of Incorporation, PAN, TAN, and a Corporate Identity Number (CIN).

FAQ’s

Q1. Is it compulsory for private limited companies to apply GST?

Ans. GST is not compulsory for private limited provided the turnover in a year should be within 40 lakhs in case of manufacturers and traders, 20 Lakhs in case of service providers, and No existence of interstate sale i.e. Sale between state and state.

Q2. What is the process of private limited registration in India?

Ans. These are the process of registering a private Limited registration:

Step 1: Apply for a Digital Signature Certificate (DSC)

Step 2: Obtain Director Identification Number (DIN)

Step 3: Name Approval

Step 4: Fill Form SPICe+ (INC-32)

Step 5: e-MoA and e-AoA

Step 6: Apply for PAN and TAN

Q3. What are the advantages of private limited registration in India?

Ans. These are the benefits of company registration in India:

Limited liability
Separate Legal Entity
Ease of Raising Funds
Credibility and Trust
Tax Benefits
Confidentiality and Privacy
Good Management Control
Employee Motivation
Ease of Ownership Transfer
Perpetual Existence

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