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Tips for Effortless Private Limited Registration Process in Chennai

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A Brief Overview of the Private Limited Company Registration Process in Chennai

Registering a Private Limited Company in Chennai involves obtaining various legal documents and complying with certain regulations set forth by the Indian government. For the benefit of any interested readers, we review the process for private limited company registration in Chennai in this blog.

A quick summary of the step-by-step process to register a private limited business online in Chennai is provided below.

  • Requesting a DSC, or digital signature certificate
  • Requesting a director identification number (DIN)
  • Looking up name availability and requesting name availability
  • Preparing and filing the electronic memorandum of association (eMoA) and electronic articles of association (eAoA) forms to register a private limited company, as well as other necessary paperwork
  • Requesting the permanent account number (PAN) and tax deduction and collection account number (TAN) of the company that is registering
  • Registrar of Companies (RoC) will issue certificates of incorporation with PAN and TAN
  • Establishing a current account with an authorized bank in the company’s name
  • A summary of the current welfare, charitable, or social activities as well as a three-year progress report
  • Comprehensive details regarding the Board of Trustees
  • The authentic MoA, registration certificate (RC), or trust deed

Key Takeaways

  • Tips for a quick and easy private limited company formation in Chennai are summarized below
  • The membership certificate and the process of creating a “private limited company” often take 15 to 25 days.
  • Your business should be linked to your company’s name.
  • The registered agent’s office must be current and operational at the address listed on state records.
  • Kanakkupillai.com is the top provider of company creation and compliance services for Indian business owners.

Required Documents for Company Registration in Chennai, Tamilnadu

The following documents is needed to register a business in Chennai, Tamilnadu:

  • Directors’ and shareholders’ PAN cards
  • Foreign nationals are required to have a current passport.
  • Shareholders’ and directors’ identification documents, such as an Aadhar card, a voter ID, a passport, or a driver’s license
  • Director’s address documentation, such as the most recent telephone, electricity, or bank account statement
  • Latest passport-size photos of shareholders and directors
  • Business address documentation, such as the most recent telephone or electricity bills for the registered office address
  • The owner(s) of the registered office must provide a NOC or no objection certificate.
  • If the registered office is located in a rented space, a rent agreement is required.

Incorporation documents for the MCA are as follows:

  1. Form INC-32, a business formation application form, submitted using SPICe+, the Simplified Proforma for Electronic Business Incorporation.
  2. DSC – Digital Signature Certificate
  3. DIN – Director Identification Number

Other documents required

  • Authorization to serve as a director via Form DIR-2
  • DIN application
  • Declaration of DIN if one is given 
  • DSC application
  • Subscribers’ declaration on Form INC-9
  • MoA
  • AoA
  • Registered office address proof
  • A letter of approval from the owner of the property
  • ID and address proof of all directors

Additional documents required

  • NOC for trademark usage
  • An existing business’s resolution or NOC on the use of a similar name

Note: There are no further registration costs if the permitted capital raised is less than 15 lakhs. Entrepreneurs must, however, pay the filing fee and stamp duty for Forms INC-33 and 34, which may be downloaded at https://www.mca.gov.in/MinistryV2/companyformsdownload.html.

Hiring a Professional Service Provider

Benefits of hiring a professional service provider

  1. You must stay away from the risk of disobedience. Your area of expertise is not likely to be consistency-related expertise is not likely to be consistency-related. These specialized organizations will help you maintain consistency, avoid needless state punishment charges, and maintain the standing of your firm at your stage of development and with additional capabilities.
  2. To ensure that claims and other reliable reports are received privately. When a service of process is delivered to an organization, it is typically done so by a local legal representative. The majority of business owners do not want the police to inform their customers, employees, or neighbors that legal action has been taken against their company (due to locally founded organizations). Choosing a qualified, licensed specialist ensures that you will receive all processing services on schedule and in confidence.
  3. Your company is based nearby. Public records are relevant when determining where the registered operator of an organization is located. That indicates that anyone can access it, including advertisers. Receiving a lot of “junk mail” from the company from the registered specialist is not extraordinary. Using a registered operator will reduce the volume of unwanted mail your company receives.
  4. You don’t maintain regular business hours. A company’s registered agent must be reachable during regular business hours to accept important documents as they are delivered. If you work on your schedule, you might want to think about hiring a reputable registered agent service provider company so that you never miss these crucial interactions.
  5. You operate your company in a different state than where its headquarters are. You are legally obligated to have an operator who is registered and has a physical address in the state where the headquarters of your organization is located. For instance, if you create a business that is physically located in another state, you may use registered agents to satisfy this need.
  6. Your company collaborates across multiple states. You need a registered specialist in each of the states you register your company in if you want it to be able to conduct business there (remote capability). By using a registered agent, one company handles this crucial service on your behalf in each state.
  7. Your location will likely change. The registered agent’s office must be current and operational at the address listed on state records. An official state document is necessary, and frequently a fee must be paid to the state to change the location. When you choose a registered agent service provider, you won’t have to worry about updating your company’s enrolled operator address with the state or paying the associated filing fees. You only need to inform your enlisted operator of your location change, whether you relocate once or frequently.

Selecting a Reputable and Knowledgeable Service Provider

Not all registered agent service providers are the same, nor do they provide services that are of comparable scope or kind. When choosing an experienced registered operator, look for a company with a track record of providing organizations with consistent services under all circumstances and one operating independently across the national workplace system, thereby providing consistency skills in all states.

This is why business owners need to cooperate with a registered agent service company. There are numerous advantages available to you. The service provider would take care of all the necessary paperwork and carry out the duties of operating the business in accordance with the law. They could then focus solely on their business without experiencing any worry.

Recognizing Legal Obligations

Familiarizing with the legal requirements for private limited company registration in Chennai

There must be a registered office in the nation of incorporation

Information about the company, including information about the directors, shareholders, and people with significant control (PSC), is made available to the public. The company’s operating norms and regulations must be outlined in the AoA.

Observing the Relevant Rules and Laws

The following rules and legislation must be followed to register a private limited company in Chennai:

  • You need at least two people to form a private limited company, and you can hire up to 200 workers in total.
  • If your business suffers a loss, you may be required to sell corporate assets to recover the loss. Your own money or any other individual’s resources are not in danger.
  • Private limited companies have existed forever. For instance, the business will continue to operate in the event of insolvency, bankruptcy, or the death of any member.
  • A business demands that you keep a record of its members as an index.
  • There must be two directors managing your company.
  • The minimum capital required for this firm is Rs. 1 lakh, though this amount may change over time.
  • Public responses are not necessary for primary businesses.
  • The words “private limited” should be after the firm name.
  • Your registered office should have a permanent address published.
  • Each director of your organization should have access to a DSC, which must be included in all documents.
  • You will need the assistance of specialists, such as a secretary, an accountant, etc., during the incorporation of your firm.

Follow-up and Communication with the Registrar of Companies

The following illustration depicts the functions of a ROC.

No business can be started on its own. It needs an incorporation certificate that is issued by the ROC following the completion of several legal criteria. The promoters are required by law to submit several documents to the ROC.

The MoA, AoA, the pre-incorporation agreement for appointing directors or managing directors, and the certification by an authorized person verifying that registration requirements have been complied with are the documents that must be presented to the ROC.

The ROC enters the company’s name in the register of companies and issues the certificate of incorporation after validating the paperwork. Along with the certificate of incorporation, the registrar also gives a certificate of company start-up. A public limited corporation must receive this certificate before commencing business.

ROC’s Refusal to Register a Business

ROC has several reasons for rejecting a company’s registration. Six clauses make up the MoA that is submitted to the registrar: the name clause, the objects clause, the registered office clause, the association clause, the capital clause, and the liability clause.

The registrar must make sure that no registration is permitted for businesses with offensive names. The registrar may also refuse to register any business with illegal goals.

After a Company is Registered, What is the ROC’s Role?

The relationship between a corporation and the ROC has no end. A firm could need to alter its name, goals, or registered office, for example. After the formalities are finished in each of these cases, a corporation must inform the ROC.

Resolutions Must be Submitted to the ROC

In accordance with the provisions of Section 117 of the Companies Act of 2013, every decision shall be registered with the ROC within 30 days of the date of enactment. All such resolutions must be filed in the ROC’s records. The Companies Act of 2013 further stipulates the punishment for failing to submit resolutions to the registrar within the allotted period.

In other words, a company is required to notify the ROC of any action it takes, such as the choice of sole-selling agents, the appointment of directors or managing directors, the distribution of prospectuses, the decision to voluntarily wind up, etc.

Sending Document to the ROC

The companies are required to file yearly forms with the ROC in accordance with the Companies Act and Regulations. The submission of paperwork to the ROC by the designated due dates is part of the company’s compliance after it was established. If they do not submit their paperwork by the deadlines, they will be subject to a steep penalty.

Among the yearly forms that must be submitted to the ROC are the share capital audit report reconciliation, deposit returns, director KYC submissions for DIN holders, annual company accounts, annual company returns, etc.

Filing Fees for ROCs

The fees to file forms and various documents with the ROC differ depending on the authorized share capital of the company. The following table includes the ROC filing costs for forms like AOC-4 and MGT-7:

Declared share capital (in INR) Applicable fee (in INR)
Less than 1,00,000 200 per document
1,00,000 to 4,99,999 300 per document
5,00,000 to 24,99,999 400 per document
25,00,000 to 99,99,999 500 per document
1,00,00,000 or more 600 per document

The following are the ROC costs for ROC services:

Particulars Fees
File examination 100
Charge examination 100
The incorporation certificate 100
Additional certified copies 25 per page

5 Steps for Registration of a Private Limited Company

1. Application of DSC and DPIN

Partners are required to apply for a digital mark and a DPIN. The director’s PIN, known as the DPIN, is supplied to all directors by the Ministry of Corporate Affairs (MCA), and the digital signature is an electronic signature used for filing. This stage can be bypassed if the directors are already in possession of both a DSC and DPIN.

2. Name approval

The “MCA” will choose one of the three options you provide for the name of your organization. The names used should be original and evocative of the company’s line of work.

3. MOA and AOA submission

The MoA and AoA must be written after the “name” has been approved. The “MCA” must receive both the MoA and the AoA, and both must have DSCs attached.

4. Get a certificate of incorporation

The membership certificate and the process of creating a “private limited company” often take 15 to 25 days. The joining certification serves as evidence that the business has been established. Your corporate identification number (CIN) is also included.

5. Apply for a bank account, a TAN, and a PAN

You must submit applications for both the PAN and TAN after completing the aforementioned tasks. Both are delivered in about 7 business days. To open a bank account, you can later present the incorporation certificate, MoA, AoA, and PAN to a bank.

Eligibility Requirements for Registering a Private Corporation

The following are the requirements for eligibility in this case:

  • A minimum of two stockholders is required.
  • There must be a minimum of two directors.
  • The required minimum share capital is Rs. 1 lakh.
  • A DPIN is necessary for all directors.
  • There should be at least one authorized partner who lives in India.

The Significance of Naming your Business Appropriately

While choosing a name for your business, there are several things to keep in mind, as specified hereunder.

The following chart illustrates the power of the registrar for the removal of the name of a private limited company.

1) Short and simple

The name ought to be short and to the point. From the first moment they either hear it or read about it, people should be able to pronounce and remember the name of your business.

2) Meaningful

Your business should be linked to your company’s name. It must complement the branding of the business. Infosys, for instance, makes references to information technology (IT) or data framework developments.

3) Unique

Your business name shouldn’t be the same as or confusingly similar to any brand or entity that already exists. The “plural version factor,” such as “Flipkart’s,” as well as simple letter case changes or punctuation additions should be avoided when adopting an established company’s name.

4) Suffix

If your company is a limited liability partnership or a private limited company, the name of your organization should end in either “LLP” or “Private Ltd.”

5) Should not be illegal or offensive

Your firm name shouldn’t be forbidden by the law. It should not violate any religion’s customs or principles or be harmful to them.

Conclusion

For the following reasons, one may look to Kanakkupillai.com, a company registration expert based in Chennai, for expert assistance to register a private limited company in Chennai:

  • Kanakkupillai.com is the top provider of company creation and compliance services for Indian business owners. 
  1. Kanakkupillai.com was utilized by over 8,000 Indian company owners to establish and manage their Pvt. Ltd. organizations.
  2. You can get assistance from their team of experts with anything from paperwork to compliance. 
  3. With the assistance of qualified certified public accountants (CPAs), accountants, and lawyers, you can register a new business at the most affordable price.
  4. The professional team at Kanakkupillai.com provides high-quality service while making the business formation procedure simple and speedy.

As a result, creating a private limited company with Kanakkupillai is easy and may be completed online in three simple steps:

  • The MCA mandates that all businesses have registered directors, which they can assist you with.
  • Decide on a name for your company. (Search for a firm name using our database, or get in touch for help.)
  • The professionals at Kanakkupillai.com prepare and submit the documents (MoA and AoA) required for your company to be registered.

Based on everything we’ve discussed so far, we’re confident that anyone reading this blog who’s curious to learn more about the registration of a private limited company in Chennai would find it useful.

FAQs on Company Registration

Kanakkupillai

Kanakkupillai is your reliable partner for every step of your business journey in India. We offer reasonable and expert assistance to ensure legal compliance, covering business registration, tax compliance, accounting and bookkeeping, and intellectual property protection. Let us help you navigate the complex legal and regulatory requirements so you can focus on growing your business. Contact us today to learn more.