Private Limited Company Registration in Allahabad

A Private Limited Company is one of the most preferred business structures for entrepreneurs in India. It is registered under the Companies Act, 2013, and governed by the Ministry of Corporate Affairs (MCA). Private Limited Company Incorporation is ideal for startups and growing businesses in Allahabad seeking credibility, flexibility, and limited liability.

Unlike Sole Proprietorships or Partnerships, a Private Limited Company has a distinct legal identity separate from its owners. It is responsible for its own profits, losses, and debts, ensuring that the personal assets of the directors remain protected. Ownership can be easily transferred through different types of shares, allowing smooth business continuity even during management changes.

Some key features of a Private Limited Company are:

• Limited Liability Protection: The personal assets of directors and shareholders are secure. They are only liable up to the amount they invest in the company. This is a key benefit for businesses in sectors like IT, trading, and manufacturing.
• Director Requirement: A minimum of 2 directors is required, with at least one being an Indian resident.
• Share Transfer Restrictions: Shares cannot be traded freely in the open market. Any transfer requires approval from the company’s management.
• Membership Limit: A Private Limited Company must have at least 2 members and can have a maximum of 200 members.

Allahabad, now officially known as Prayagraj, is emerging as a significant business hub in Uttar Pradesh. Strategically located at the confluence of the Ganges and Yamuna rivers, it offers entrepreneurs access to a growing market, skilled talent, and improving infrastructure.

Recent developments, such as the upcoming Prayagraj ropeway project, aim to enhance connectivity and boost tourism. This further contributes to the city's economic growth.

The city is also home to several educational institutions, including the Indian Institute of Information Technology (IIIT), Allahabad, and Motilal Nehru National Institute of Technology (MNNIT). These foster a culture of innovation and entrepreneurship.

In terms of investment, Uttar Pradesh has been making strides. The state has launched initiatives like the Rs. 945 crore Startup India Seed Fund Scheme and a Rs. 10,000 crore 'fund of funds' to support startups and venture capital growth. These developments make Allahabad an attractive destination for setting up a Private Limited Company.

Key benefits of registering a Private Limited Company in Allahabad include:

• Investor Confidence: The structured governance of Private Limited Companies instills trust among investors, facilitating easier access to funding.
• Scalability and Expansion: With the ability to onboard up to 200 shareholders, this structure supports business growth and expansion.
• Employment Generation and Credibility: Operating as a Private Limited Company enhances credibility with stakeholders and can aid in talent acquisition.
• Tax Planning Benefits: Eligible businesses can benefit from various tax exemptions and incentives, reducing the overall tax burden.

Given these Private Limited Company advantages, registering this structure is a strategic move for entrepreneurs looking to establish a credible and growth-oriented business.

Entrepreneurs must comply with local requirements under the state’s ecosystem and the Ministry of Corporate Affairs (MCA) guidelines to register a Pvt Ltd Company in Allahabad. Some key requirements include:

1. Registered Office in Allahabad: Provide a local address (residential or commercial) within Allahabad. The address will serve as the company’s registered office for receiving all official correspondence. Initially, a temporary address can be provided and updated later using Form INC-22 within 30 days of incorporation.
2. Directors and Shareholders: At least two directors and shareholders are required. The same individuals can act as both. At least one director must be a resident of India, having lived in India for at least 182 days in the previous year.
3. Compliance with State Regulations: Businesses in Allahabad may need to comply with state-specific registrations, like obtaining a Trade License from local municipal authorities, state GST, and Shop and Establishment Registration.
4. MoA & AoA: Prepare and submit the Memorandum of Association and Articles of Association to define the company’s objectives, scope of activities, and internal governance structure.
   The e-MoA (INC-33) and e-AoA (INC-34) are filed online through the SPICe+ form on the MCA portal.
5. DIN: Ensure that every director obtains a Director Identification Number (DIN) issued by the MCA to be eligible for appointment. Under the SPICe+ process, DIN is automatically allotted at the time of incorporation. You don’t need a separate application unless the person is not already a director in any company.
6. DSC: A Digital Signature Certificate (DSC) is required for all shareholders and directors to sign electronic documents during the online registration process on the MCA portal.
7. PAN and TAN Application: Obtain a company PAN and TAN card for taxation and compliance purposes after your company is incorporated.
8. Age Requirement: Directors must be 18 years of age or above at the time of incorporation.
9. Unique Company Name: The proposed company name should be unique and approved by the MCA.
10. Authorized Capital Declaration: The company must declare the authorized capital in its incorporation documents filed during registration.
11. KYC-Compliant Proofs of Directors and Shareholders: Every director and shareholder must provide valid identity and address proof (PAN card, Aadhar card, Passport, Driving License, etc.) to complete MCA KYC compliance.

The Private Limited Company registration process in Allahabad is completely online. It is governed by the Registrar of Companies (RoC), Uttar Pradesh, under the MCA. Here’s a step-by-step process to register a private limited company in Allahabad:

Step 1: Obtain a DSC and a DIN

• Obtain a Digital Signature Certificate (DSC) for directors and subscribers to sign electronic documents on the MCA portal (mca.gov.in). You can apply for a DSC from government-approved certifying authorities.
• Get a Director Identification Number (DIN) by filing the SPICe+ form during the incorporation process. A DIN is mandatory for all directors of the company.

Step 2: Reserve a Unique Company Name

• Choose a unique company name. It should not resemble any existing registered company or trademark.
• You can use the Reserve Unique Name (RUN) service or fill out the SPICe+ (Part A) form on the MCA portal to apply for name reservation.
• Keep at least 2–3 names in case the first option is rejected.

You can choose the perfect name for your company using the company name check tool.

Step 3: Draft the MoA and AoA

The Memorandum of Association (MoA) defines a company’s objectives and scope of operations. Moreover, the Articles of Association (AoA) outline the rules and regulations governing the company’s internal management.

• Carefully draft both the MoA and AoA.
• File them with the MCA during the incorporation process.

These documents establish the foundation of the company’s legal structure.

Step 4: File the SPICe+ Form for Incorporation

A SPICe+ form is a single integrated form that simplifies the incorporation process. It includes applications for PAN, TAN, EPFO registration, ESIC, Professional Tax (if applicable), and bank account opening.

• Fill the SPICe+ form via the MCA portal to apply for DIN, PAN, TAN, and certificates, including incorporation.
• Provide details like shareholder and director details, registered office address in Allahabad, and share capital.
• Attach supporting documents such as address proof, identity proof, and NOC from the property owner (if rented).

Note: The SPICe+ form is integrated with AGILE-PRO-S, enabling simultaneous registration for EPFO, ESIC, GSTIN, and opening a bank account.

Step 5: Receive the Certificate of Incorporation

• Upon approval by the Registrar of Companies (RoC), Uttar Pradesh, your company is incorporated.
• Download the digitally issued Certificate of Incorporation (CoI). The CoI comes with a unique Corporate Identity Number (CIN).
• Receive the company’s PAN and TAN to serve as legal proof of its existence in Allahabad.

Submit certain documents to the Registrar of Companies (RoC) to successfully register a private limited company in Allahabad. These documents vary for foreign nationals, Indian citizens, and the company’s registered office.

For Indian Directors and Shareholders

• Self-attested copy of Aadhaar Card, Voter ID, Driving License, or Passport as identity proof.
• Self-attested copy of PAN Card.
• Latest utility bill (electricity, water, gas, or telephone bill) or bank statement (not older than 2 months) as address proof.
• DSC of directors.
• Passport-size photograph of each director and shareholder.

For Foreign Nationals

• Residential address proof, such as a bank statement, utility bill, or driving license (not older than 2 months).
• Notarized and apostilled copy of Passport (mandatory).
• Passport-size photograph.
• DSC for foreign directors, which must be obtained in India.
• Notarized and translated documents in English.

For the Registered Office in Allahabad

• Ownership documents or a rent agreement, along with a No Objection Certificate (NOC).
• Copy of the latest electricity bill, water bill, or property tax receipt as proof of office address.

A Simple Checklist of All the Documents You Will Need

• Address proof (utility bill, bank statement, or government ID)
• PAN Card of all Indian directors and shareholders
• Passport (for foreign nationals)
• Digital Signature Certificate (DSC)
• Passport-sized photographs

Both professional service fees and government charges are required for registering a private company in Allahabad. The exact fees of registering a private company in Allahabad depend on several factors, like authorized share capital, the number of directors, and additional compliances.

Note: Stamp duty varies by state and capital. It starts from Rs. 135 to Rs. 15,020 for capital up to Rs. 1 lakh.

Are There Any Hidden Costs to Be Aware Of?

Although most costs are transparent, additional fees may arise from:

• Notarization of documents
• Resubmission in case of errors in documentation
• Higher stamp duty if the authorized share capital is increased
• State-specific registrations (GST, trade license, etc.)

Various post-incorporation compliances must be completed once your private limited company is incorporated to ensure smooth functioning and avoid penalties. Mandated under the Companies Act, 2013, some requirements apply to all companies incorporated in Allahabad, including:

• Opening a Company Bank Account

Open a current account in the company’s name in Allahabad or a nearby NCR-based bank. This is essential for handling financial transactions, including day-to-day business operations and share capital deposits.

• First Board Meeting Within 30 Days

Conduct the company’s first board meeting within 30 days of incorporation. Discuss important matters like the appointment of the first auditor, the issuance of share certificates, and the adoption of official company registers.

• Appointment of the First Auditor

Appoint the first auditor within 30 days of incorporation as per Section 139 of the Companies Act.

• Issuance of Share Certificates

Issue share certificates to all shareholders within 60 days of incorporation. Do this only after receiving the share capital subscription in the company’s bank account.

• Filing for Commencement of Business (Form INC-20A)

File a declaration in Form INC-20A with the Registrar of Companies (Uttar Pradesh) within 180 days of incorporation. This is essential to commence your operations.

Annual Compliance to Keep in Mind

Post incorporation, a Private Limited Company in Allahabad must follow certain annual compliances as per the Companies Act, 2013. Some major Private Limited Companies compliance includes:

• File Annual Return (Form MGT-7) with the Registrar of Companies, Uttar Pradesh. This return contains details of shareholders, directors, and key changes in the company during the financial year.
• File your balance sheet, profit and loss account, and other financial documents through Financial Statements (Form AOC-4). This ensures financial transparency and compliance.
• Hold board meetings at least four times a year (for larger companies) or twice a year (for smaller ones).
• Maintain statutory registers at their registered office in Allahabad. These include the Register of Members, Register of Directors, Register of Charges, and other records as prescribed by law.