Procedure of registration of private limited company
A company within the eyes of the law is taken into account a separate legal entity from its founders it’s shareholders (stakeholders) and directors (company officers). Each individual is considered an employee of the corporate .
Documents required for company registration
In India, registration of an organization cannot be avoided proper proof of identity and proof of address. Proof of registration and address would be needed for the incorporation of all the company’s directors and shareholders. In points we will write like this:-
- Pan Card of every member (Minimum Two members)
- Coloured Passport size Photo
- Residence Proof (Electricity bill/ mobile Bill/telephone Bill)
- ID Proof of every members (Voter I.D./ Driving License/ Bank Statement)
- Rent/lease /sale deed for registered office and utility bill of an equivalent address
Benefits of company registration in India
A company registration provides many advantages. A licensed company makes it real, and increased the business’ credibility.
Preserved against personal obligation, and contend against other threats and losses.
- Builds goodwill and also supports more customer attraction
- Gives trustworthy investors bank credits and good investment with cover.
- Provides cover of the responsibility to guard the company’s assets
- Bigger commitment to wealth and greater stability
- Increases the power to develop and grow large.
- All the particulars of the administrators and shareholders is to be submitted to the registrar at the time of registration. Pan Card/Aadhar card/Diving license/passport are often submitted as proof of identity. Latest phone bill /Electricity Bill/ checking account Statement is to be submitted for proof of address.
- The organisation must have a registered office in India for online business registration in India. A recent copy of an energy bill or the property tax receipt or water bill must be sent to verify admission to the registered office. additionally to the tenancy/rental agreement, the maintenance bill or the sale deed or a letter or NOC from the owner with his/her permission to use the office because the company’s registered office is accepted.
Along with these documents the DIN and DSC of all the administrators is additionally to be submitted. These documents mentioned are the general documents which are to be submitted for registration of LLP, One Person Company, Private Limited and Public Ltd. .
Registration Process in 5 Steps
According to the MCA Annual Data Reports, quite 10,000+ private limited companies are formed every month!
Private Ltd. is taken under consideration a popular corporate business entity among small, medium and massive companies in India.
Many don’t know the Private Ltd. Registration Process and what are the required procedures, documents which is required while forming a private Ltd. .
Company Formation isn’t enough you’d wish to follow 30 Days Compliance After Incorporation Of Company which many companies fail to follow which they end up with huge penalties.
“Private” means it restricts the general public to shop for for for the corporate shares whereas just just just just just in case of a public Ltd. it allows the overall public to buy for the company shares. The word “Limited” denotes Company’s shareholders which may be minimum 2 and maximum 200 are responsible for its debt.
The shareholders are often a private or an organization including foreign companies. The shareholders cannot offer their allowance to the overall public over stock retail . The minimum capital required for the private Ltd. as stated by Section 2, Clause 68, Companies Act 2013 is 1 Lakh.
The main advantage of fixing a private Ltd. is that if an organization goes into the loss, the shareholders are vulnerable to sell the shares to recover the loss. The shareholder’s personal assets aren’t at the danger which is that the main reason why most of the companies choose a personal Ltd.
Steps to form a private Ltd. in India
Step 1: Obtain a Digital Signature Certificate (DSC)
The first step is to urge DSC i.e Digital Signature Certificate for the administrators involved within the private Ltd. . the most purpose of the DSC is to sign the eforms . consistent with , the knowledge Technology Act, 2000 has provisions to be used of Digital Signatures on the documents submitted in electronic form so on confirm the security and authenticity of the documents filed electronically. this is often a secure and authentic because of submit a document electronically. DSC is mandatory for all the administrators within the company.
How you’ll Obtain DSC?
You can obtain DSC by directly approaching Certifying Authorities (CAs) with original supporting documents, and self-attested copies are becoming to be sufficient.
Working Days: 1 to three Days.
Step 2: After registering DSC, you would like to verify your name on MCA Portal.
Services Note: Your name should not be registered and can not be taken.
If taken, confirm that your name should not be same as name .
next, for name approval there are 2 options:
- 1. Run approval: With run (Reserve Unique Name) approval you’ll ensure whether the name is out there or not. But this method doesn’t allow you to resubmit once it’s submitted. just in case name gets rejected you’ll resubmit by paying Rs.1000 for each submission.
- 2. File through SPICe INCE -32 form: Incorporating a corporation through Simplified Proforma for Incorporating Company electronically with is that the default and most companies are required to be incorporated through SPICe only.
Working Days: 7 – 9 Days.
Step 3: Issue the Incorporation Certificate:
Once MOA and AOA are approved, you will get incorporation certificate which may include the date of incorporation and PAN number of the company.
Step 4: GET PAN & TAN Applications
Once you get incorporation certificate, you’ll get PAN & TAN application by MCA.
Working Days: 1 – 3 Days.
On a mean , it takes up to fifteen days to register a private Ltd. subject to document verification by MCA and thus the interval depends on a case to case basis. Any person over the age of 18 years can become a director in a company. Also, there are no conditions on residency or citizenship. Hence, NRIs and Foreign Nationals can easily start and manage a private limited company in India.
These are essential documents for a Company that contains the rules, vision, and mission of your organization, and define, among other things, the exact business and the roles and responsibilities of shareholders and directors.
No Doubt, Private Limited Company is a most popular corporate entity for companies and it has many benefits for new companies. Private Limited Company registration process requires a lot of commitment which becomes very difficult at the early stage of starting out a company. It is recommended to take the help of professional CA expert.
Author: Pragya Sinha,
Symbiosis law college,nagpur . 1st year