FAQ on Private Limited Company Registration in Gurugram

Starting a business in Gurugram can be an exciting venture, but it requires careful planning and compliance with legal requirements. If you’re looking to start a business in Gurugram, registering your company as a Private Limited Company is a popular choice. However, the registration process can be daunting if you’re not familiar with the legal and regulatory requirements. In this article, we’ll answer some FAQ on Private Limited Company Registration in Gurugram. 

FAQ on Private Limited Company Registration in Gurugram

Here are some frequently asked questions about Private Limited Company registration in Gurugram:

Q. 1. What is Private Limited Company?

A Private Limited Company is a type of company structure that is privately held and owned by a small group of individuals. In this type of company, the liability of its shareholders is limited to the amount of shares they hold. The number of shareholders is limited to a maximum of 200, and shares cannot be publicly traded. 

Private Limited Companies are governed by the Companies Act, 2013, and can be registered with the Registrar of Companies (ROC) in India. Private Limited Companies are popular among small businesses and startups because they provide a separate legal entity, perpetual succession, and the ability to raise capital through the issuance of shares.

Q. 2. What are the benefits of registering a Private Limited Company in Gurugram?

There are several benefits of registering a Private Limited Company in Gurugram, some of which are:

• Separate legal entity: A Private Limited Company is a separate legal entity from its owners, which means that the company can enter into contracts, sue, and be sued in its own name.
• Limited liability: The liability of the shareholders of a Private Limited Company is limited to the extent of their shareholding in the company. This means that the personal assets of the shareholders are not at risk if the company faces any financial difficulties or legal issues.
• Perpetual existence: A Private Limited Company has perpetual existence, which means that the company can continue to exist even if the ownership or management changes.
• Raise capital: A Private Limited Company can raise capital by issuing shares to the public or private investors, which can help the company to expand and grow its business.
• Credibility: A Private Limited Company is considered to be more credible and trustworthy than a sole proprietorship or partnership, which can help to attract more customers and investors.
• Tax benefits: A Private Limited Company is eligible for several tax benefits, such as tax deductions on business expenses, tax exemption on profits earned from exports, and lower tax rates compared to other forms of business entities.
• Limited compliance: A Private Limited Company has limited compliance requirements compared to a public limited company, which makes it easier to manage and operate the business.

Overall, registering a Private Limited Company in Gurugram provides several benefits, including limited liability, perpetual existence, ability to raise capital, and tax benefits, among others, which can help to establish a successful and sustainable business.

Q. 3. What are the requirements for registering a Private Limited Company in Gurugram?

The requirements for registering a Private Limited Company in Gurugram are as follows:

• Minimum two directors: A Private Limited Company must have a minimum of two directors, and at least one of them must be a resident of India.
• Minimum two shareholders: A Private Limited Company must have a minimum of two shareholders, and the maximum number of shareholders is limited to 200.
• Minimum authorized and paid-up capital: There is no minimum authorized capital for registering a Private Limited Company in India. However, there must be a minimum paid-up capital of INR 1 lakh (approx. USD 1,350).
• Registered office address: A Private Limited Company must have a registered office address in Gurugram, which must be submitted to the ROC during the registration process.
• Name approval: The company name must be unique and not similar to any existing company name. The name should also adhere to the guidelines provided by the Ministry of Corporate Affairs (MCA).
• Memorandum of Association (MOA) and Articles of Association (AOA): The MOA and AOA of the company must be prepared and filed with the ROC during the registration process.
• Digital Signature Certificate (DSC) and Director Identification Number (DIN): The proposed directors of the company must obtain a DSC and DIN.
• Compliance with legal formalities: The company must comply with all legal formalities and regulations laid down by the MCA and the ROC during the registration process.

It is essential to note that the requirements may vary based on the specific nature and size of the business.

Q. 4. What are the documents required to register a Private Limited Company in Gurugram?

The documents required for registering a Private Limited Company in Gurugram are:

• PAN card and address proof of all directors
• Aadhaar card or voter ID card of all directors
• Proof of registered office address
• Memorandum of Association (MOA) and Articles of Association (AOA)

Q. 5. What is the Process of Registering a Private Limited Company in Gurugram?

The process of registering a Private Limited Company in Gurugram involves the following steps:

• Obtain DSC and DIN for proposed directors: The first step is to obtain a DSC and DIN for all proposed directors of the company.
• Choose a unique company name and get it approved by the ROC in Gurugram: The next step is to choose a unique name for the company and get it approved by the ROC in Gurugram. The name should not be similar to any existing company name and should adhere to the guidelines provided by the MCA.
• Prepare Memorandum of Association (MOA) and Articles of Association (AOA) and get them stamped: Once the name is approved, the next step is to prepare the MOA and AOA of the company. These documents define the objectives, rules, and regulations of the company. They also need to be stamped by the appropriate authority.
• File incorporation documents with ROC, including MOA, AOA, and forms such as SPICe (INC-32): After the MOA and AOA are prepared, the incorporation documents need to be filed with the ROC. This includes filling the SPICe (Simplified Proforma for Incorporating Company Electronically) form along with the MOA and AOA.
• Obtain Certificate of Incorporation (COI) from ROC: Once the documents are filed and verified, the ROC will issue a COI with a unique CIN to the company, which signifies that the company is now officially registered as a Private Limited Company in Gurugram.

The entire process of registering a Private Limited Company in Gurugram can take around 10-15 days, subject to the availability of necessary documents and compliance with legal formalities.

Q. 6. How long does it take to register a Private Limited Company in Gurugram?

The time taken to register a Private Limited Company in Gurugram can vary depending on several factors, such as the availability of necessary documents, the speed of processing by the ROC, and compliance with legal formalities. Generally, the process of registration can take around 10-15 working days from the date of submission of the application. 

However, the time frame can vary depending on the workload of the ROC and the time taken for approval of name, verification of documents, and issuance of the COI. The process can also be expedited by using the SPICe  form, which enables the incorporation of a company with a single form, thereby reducing the time taken for registration.

Q. 7. What are the compliance requirements for Private Limited Companies in Gurugram?

Private Limited Companies in Gurugram are required to comply with several legal and regulatory requirements to operate their business smoothly. Some of the key compliance requirements for Private Limited Companies in Gurugram are:

• Annual General Meeting (AGM): Private Limited Companies are required to hold an AGM every year within six months from the end of the financial year. 
• Board Meetings: Private Limited Companies are required to hold at least four board meetings every year, with a maximum gap of 120 days between two consecutive meetings. 
• Financial Statements: Private Limited Companies are required to prepare financial statements, including balance sheets, profit and loss accounts, and cash flow statements, and file them with the ROC within 30 days from the AGM. 
• Income Tax Returns (ITR): Private Limited Companies are required to file income tax returns every year, regardless of their profit or loss. 
• Goods and Services Tax (GST) Returns: Private Limited Companies registered under GST are required to file GST returns every month or quarter, depending on their turnover. 
• Compliance with Other Laws: Private Limited Companies must comply with several other laws and regulations, such as the Companies Act, 2013 the Income Tax Act, the Goods and Services Tax Act, labour laws, and environmental laws. 
• Maintaining Statutory Registers: Private Limited Companies are required to maintain several statutory registers, such as the register of members, register of directors, register of charges, and register of investments.

It is important to note that non-compliance with the above-mentioned requirements can result in penalties, fines, and even legal action against the company and its directors. Therefore, it is essential for Private Limited Companies to ensure timely compliance with all legal and regulatory requirements to avoid any legal or financial implications.

Q. 8. What are the fees involved in Private Limited Company Registration in Gurugram?

A: The fees involved in Private Limited Company Registration in Gurugram include the Registrar of Companies (ROC) fee, professional fees for services such as legal and accounting, stamp duty, and other charges. The total cost of registration can vary depending on the specific requirements of your business.

Q. 9. Can a foreign national or NRI register a Private Limited Company in Gurugram?

A: Yes, a foreign national or NRI can register a Private Limited Company in Gurugram. However, they must comply with specific regulations, such as obtaining a Digital Signature Certificate and a Director Identification Number, as well as adhering to the Foreign Exchange Management Act (FEMA) guidelines.

Q. 10. Can a Private Limited Company be converted into a Public Limited Company in Gurugram?

Yes, a Private Limited Company can be converted into a Public Limited Company in Gurugram, subject to compliance with the provisions of the Companies Act, 2013.

In conclusion, registering a Private Limited Company in Gurugram can be a complex process, but with the help of a professional, it can be completed smoothly and efficiently. It is essential to understand the advantages, requirements, and compliance regulations before embarking on this journey. By following the guidelines and consulting with a professional, you can ensure the success of your Private Limited Company in Gurugram.