How to Register a Private Limited Company?
Online Company Registrations in India: One of the highly recommended ways to start business in India is setting up a private limited company. There are other types of companies too such as LLP, which offers limited liability to its partners, other then this small company and public company.
A private limited company is a company privately held for small businesses. This type of business entity limits owner liability to their shareholdings, the number of shareholders to 200, and restricts shareholders from publicly trading shares.
Below Explained is a Process to Register a Company, BUT, you don’t have to worry about anything, we are here to complete the process for you. All you have to do is open a current account in bank of your choice for the company and get going with the business operations.
Step 1: Obtain Digital Signature Certificate (DSC)*
Digital signatures are required to file the forms for company formation. the forms require a digital signature. DSC is mandatory for all subscribers and witnesses in the memorandum and articles of association.
Step 2: Obtain DIN* ( Direct identification number)
DIN is an identification number for a director. It has to be obtained by anyone who wants to be a director in a company.
Step 3: Name Availability
The Ministry of Corporate Affairs (MCA) has introduced RUN web service for the incorporation of a company. RUN gives only one chance for applying and in case of rejection of the name due to any similarity of name, there are no second chances available
Step 4: Form SPICE INC-32
An application for the proposed name through SPICe(INC-32) can be made, but only one name can be applied to this form, which is similar to that of the provision in RUN.
Step 5: MOA and AOA
Memorandum represents the charter of the company while articles of association contain the internal rules and regulations of the company.
Earlier memorandum of association and articles of association were required to be filed physically. But now these forms are filed online on MCA portal.
Step 6: PAN and TAN Application
Through this single form SPICe, you can also apply for company’s PAN and TAN by using forms 49A for PAN and 49B for TAN. The system will auto-generate these forms after the submission of SPICe form.
Step 7: Open a current account in bank
A bank account is to be opened to keep an account for all the transactions of company.
Checklist for Registering a Company in India
As per The Companies Act 2013, we have to ensure the requirements of the checklist
Two Directors: A private limited company must have at least two directors and at most, there can be 15 directors. Among all the directors in the business, at least one must be a resident of India.
Unique Name: The name of your business must be unique. The suggested name should not match with any existing companies or trademarks in India, because MCA only gives single chance to get your name approved.
Minimum Capital Contribution: There is no minimum capital amount for a company.
Registered Office: The registered office of a company does not have to be a commercial space. Even a rented home can be the registered office, as long as an NOC is obtained from the landlord.
Benefits of Company Incorporation in India
Advantages of incorporating a company in India are listed as follows:
- Limited Risk To Personal Assets: Shareholders of a private limited company have limited liability in respect of debts, which means that a shareholder is only responsible for the debts upto the amount of capital contributed and not personal assets.
- Separate Legal Entity: A separate legal entity means company is different from the owner. Therefore creditors cannot enforce it against you to recover money.
- Transferability Of Shares: The ownership of a private limited company is determined by the number of shares held by its shareholders. Shares of a company can be transferred to any other person or legal entity in India, subject to the articles of association of a company and the shareholders agreement.
- Perpetual Succession: Perpetual succession means continuous existence of a corporation that is unaffected by death or insolvency. A company is considered to be legally active until wounded up by its members undergoing a legal process
Search a Company Name
Look for a company name that is not already registered. A company name that is just yours. A RUN (reserve unique name) web service is introduced by the MCA, which only gives one chance for applying and in case of rejection, no second chances are available.
Documents Required to Register a Company
Identify the 2 directors and submit their documents as given below.
- Identity Proof- PAN (Indian Nationals ) or Passport (Foreign nationals)
PAN Card copy of the proposed Directors of the Company will be required for Company Registration.
- Proof of Address- Passport / Drivers License / Election ID / Ration Card / Aadhar ID
The address proof submitted must have the name of the Director as mentioned in the PAN Card and the most current address of the Director.
- Proof of residence- Bank Statement / Electricity Bill / Phone Bill
The residential proof must also contain the name of the Director as mentioned in the PAN Card and must not be older than two months.
- Registered office Proof:
In addition to providing identity, address and residential address for the Directors, proof must be provided to validate the registered office address of the Company.
The registered document of the title of the premises of the registered office in the name of the company;
The notarized copy of lease / rent agreement in the name of the company along with a copy of rent paid receipt not older than one month;
How Do We Help in Registering Company?
A private limited company registration process is completely online so we will help you out with that completely. We generally complete the entire process in 14 days.
We help you with the following things:
- DIN & DSC
- Drafting of MOA & AOA
- Registration fees
- Company incorporation certificate
- Company PAN & TAN
What are MOA and AOA?
Memorandum of Association (MOA) is defined under section 2(56) of the Companies Act 2013. It is the foundation on which the company is built. It defines the constitution, powers and objects of the company. The Articles of Association (AOA) is defined under section 2(5) of the Companies Act. It details all the rules and regulations relating to the management of the company
What are the Prerequisites to Incorporate a Private Limited Company?
The prerequisites for the incorporation of a private limited company are that:
- The number of members must be between 2-200.
- There must be at least two directors and two shareholders
- Each director must have a Directors Identification Number (DIN)
- PAN card copy of directors/shareholders. Passport copy for NRI subscribers.
Is there a limit on the number of directors that can fill a form for obtaining DIN?
For the incorporation of the company, a maximum of three directors can use the integrated form for filing application for allotment of DIN.
How do I open a Current Bank Account?
Once the company is incorporated, a current account needs to be opened in the name of the company for transactions. Your advisor will guide you through the process of choosing the bank that you want to open the account with and get the documents like certificate of incorporation, Memorandum and Articles of Association, board resolution, copy of PAN allotment letter and utilities bill.
Can one Register a Private Limited Company on their Home Address?
Yes, a person can register a private limited company at their residential address.