Steps Involved In Registering A Private Limited Company In India

Once you decide to form a private limited company, it is important that you register it in India. In this type of business structure, the company is owned by a minimum of 2 members. The liability of a person is limited to the investment made. The personal assets of a person are safe if the company incurs a financial loss.

When you register the company in India, the company has a legal existence which is different from the owners. The company can own assets, borrow money, sue and get sued in its name. Registering a company can provide several benefits to the owners, like building credibility in the market, raising funds, getting loans and more. You can contact a professional services provider for an online Pvt. ltd. company registration.

Registration Process For a Private Limited Company

The registration process can be done online and uses electronic documents and e-forms. The electronic documents have to be signed digitally, therefore you need to get a Digital Signature Certificate (DSC) for directors, promoters and founders. You should apply for a DSC at the right authorities. It is a form of token which is valid for 1 – 2 years. Documents required are a PAN card, address proof and a passport-sized photograph. The fee is Rs. 1500 per DSC.

Each director of the company will have to obtain the Director Identification Number (DIN). The Ministry of Corporate Affairs (MCA) assigns a unique number to each director. It can be obtained online through the MCA site. Documents required are PAN card, ID proof and a copy of the utility bill not more than 2 months old. Details required are the place of birth, educational qualification, occupation and duration of stay at the current address. The fee is Rs.500 per DIN.

For registering a pvt. ltd. company in India, the company should have a unique name. The name of your company should not be identical to or similar to any existing company. The name of the company you choose should not be an offence under the law. You can fill out the SPICE+(Part A) online form to reserve the name of your company. This process can be done individually or while registering your company. Only a registered user of MCA can file the application for the name of the company. The name approval fee is Rs. 1000 per application.

Details required are the business activity of the proposed company, trademark application details, and NOC from the trademark owner. In case the name is based on another company or LLP, then NOC in the form of a board resolution is required. If your company name is approved, then it is reserved for 20 days from the approval date.

The forms to be filled out for incorporating a company online are SPICE+ (Part B) and INC-32 (SPICe-e). The attachments required for the INC-32 or SPICe -e form are Memorandum of Association (MoA), Articles of Association (AoA), INC-9 affidavit and declaration by the first director, DIR-2 declaration by the first director along with identity proof and address proof, NOC from owner of property, proof of office address and utility bill (not older than 2 months).

MOA

It should contain the information such as the name of the company ending with the words ‘Private ‘Limited’, the registration office where the company is located, the paid-up amount with which the company is being registered and the business activity for which the company is being incorporated.

AOA

It should contain the rules for managing the company. It should contain information like the share capital, variation of rights, general meetings, board of directors, dividends and reserves, accounts and more.

The Agile form is a linked form and should be filled out to get the required registrations. The registrations required are Goods and Services Tax Identification Number (GST), Employees State Insurance Corporation Registration (ESI), Employees Provident Fund Organisation Registration (EPF) and bank account opening.

All the documents, along with the fees, have to be filed with the Registrar of Companies (ROC). The registrar will verify the documents and, if satisfied, will add the name of the company to the register. The registrar issues the Certificate of Incorporation. Once your company gets registered, it can commence business.

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Adam Regan

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