Success and comfort can’t go together, we all have heard it once in a life. Maybe that is true but not every time. Some things can be done with comfort as well but unfortunately people believe in the above saying so much that they think without uncomfort success can’t be achieved. The best example of this is the startups. Since the beginning of their venture they start competing with the giant established businesses and the very first mistake they commit is to take offices whose rent is very high. It is fine for those startups who have enough money but there are some startups which are self funded and not having very much money. It’s good if the latter will invest their money smartly. It’s not at all compulsory to start your businesses from big offices only, even as per law a Private Limited Company from home is also possible. To know about how it is possible to form a Private Limited Company from home, continue reading this write-up till the end.
What is a Private Limited Company?
The Companies Act of 2013 outlines different types of entities, and one of them is the Private Limited Company. These companies can be established with at least two directors but can have up to 200. They are suitable for businesses with broader operations that extend beyond a specific area. Private Limited Companies offer advantages like limited liability, a separate identity, continuous existence, and well-defined management. One of the best things about such companies is that registration of Private Limited Company from home is also possible. For new businesses looking to establish themselves in the market, choosing Private Limited Company registration is recommended due to these benefits.
Address Proof of Private Limited Company
Address proof of any kind of company is very important. Without having proper documents with respect to the address proof of the Private Limited Company one cannot complete the process of company registration. Even one who wants to do registration of Private Limited Company from home has to provide all the documents. Whether the office is on rent or the personal property documents are must.
The office of the company must be chosen wisely because once your company gets registered the address cannot be changed easily. There is a separate procedure to change the address of the company, in order to change the address one needs to follow the same. Secondly, addressing is also important from a business perspective.
Documents Related to Business Address Proof
To complete the process of incorporation of the company one needs to provide the various documents related to the business address proof of the company. If one wants to register its Private Limited Company, he or she needs to provide documents regarding the business address proof accordingly. Some of the important documents with respect to the registration of Private Limited Company from home are mentioned below:
Office is on Rent
- Rent agreement of the respective property will be required
- Rent receipt will also be required
- Aadhaar card of the owner of the property
- Non objection certificate of the owner of the property will be required
- In case the rented office is in any society then the permission of the society in the form of no objection certificate will be required
Office is Personal Property
- Utility bill of the business address proof will be required
- Utility bill means and includes electricity bill, gas bill, telephone bill etc. any of them is acceptable
- In case the property is on the name of the father or mother or wife then with the utility bill, no objection certificate of the particular person will be required
How to Form a Private Limited Company from home?
In order to form or incorporate a Private Limited Company from home follow the steps given below:
- Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN)
- Apply for the name approval of the company through the portal of Ministry of Corporate Affairs
- Start preparing all the incorporation documents till the name of the company will be approved
- Once the name of the company will be approved start fill in the form for the incorporation of the company from the MCA
- Once the for is filled attach all the required document with it
- Check the entire application after fill in the same
- Submit the application and after paying the incorporation fees
- Examination will be done by the registrar of companies
- After the successful examination certificate of incorporation will be issued
- After obtaining the certificate of the incorporation of the Private Limited Company from home, make application for the PAN and TAN of the company
- Open a Bank Account of the company
- Compliance with other Laws must be done
Merits and Demerits of Private Limited Company from Residential Address
As there are two aspects of everything that are positive and negative, forming a Private Limited Company from a residential address is the same. There are certain advantages as well as disadvantages of forming a Private Limited Company from home out of which some of the key merits and demerits of the same are mentioned below:
| Merits | Demerits |
| Forming a Private Limited Company from residential address is comfortable | Although the process of forming a Private Limited Company from residential address is comfortable, sometimes it proofs negative for the company |
| Pocket friendly Process | Because of saving less money sometimes it invites big losses |
| With little bit investment in the office at home, one can make good profit | Difficulty to maintain professional and personal life |
| Can work easily from the home | Not easy to maintain work properly |
| Office may change but the official address proof of the company will remain same | Its really difficult to change the address of the company |
| Easy access of information as it will be directly come to the owner of the business | Other companies like obtaining GST registration and all becomes little bit difficult |
Conclusion
Forming a Private Limited Company from home in India is possible, and it has both advantages and disadvantages. The merits include comfort, cost-effectiveness, and the ability to work from home, which can lead to good profits with minimal investment. However, maintaining a professional and personal life balance can be challenging, and changing the company’s address can be difficult once it’s registered. Additionally, dealing with certain regulatory requirements like obtaining GST registration may become more complex. In essence, it offers convenience and cost savings but requires careful consideration of the potential challenges and impacts on work-life balance.
