Private Limited Company Registration Process in India:
A private limited company is one of the most successful ways to startup your business in India. The company provides limited liabilities for its shareholders and directors. However, there are certain restrictions placed on ownership. In a private limited company, the directors may be different from shareholders.
The company can register with a minimum of two people. In India, the private limited company commenced after getting the certificate of incorporation authority. Moreover, it can take 15 working days to register for a private company.
Private Limited Company:
A private limited company creates for small businesses. This type of company contains the limitation for owner liability and its shareholders. The company also provides legal protection to its shareholders. In contrast, restricted shareholders don’t allow for trading shares publically.
Process for Registration of Private Limited Company:
Step 1: Acquire Digital Signature Certificate (DSC)
Digital Signatures are necessary to provide information for company formation. DSC is mandatory for all users to fill an online form for their company registration process. You must have to acquire a digital signature certificate from the government to build up a Private Limited Company.
Step 2: Obtain Director Identification Number (DIN)
DIN is a director identification number, and it will obtain by anyone who wants to be a director of a company. So, one DIN is enough for multiple companies.
Step 3: Name Availability of Company
When you are registering a private company, there is one thing to know the company must have a unique name. For this purpose, the Ministry of Corporate introduced a RUN (Reverse Unique Name) Web software to check that is company name already exists?
Step 4: Form SPICe (INC-32)
It is a simple form introduced by the Ministry of Company Affairs for incorporating the company electronically. It has the following purposes
Allotment of Director Identification Number(DIN)
Company name Reservation
Incorporation of a new company
Application for PAN and TAN
Step 5: e-MOA and e-AOA:
e-MoA stands for electronic Memorandum of Association and e-AOA refer to an electronic article of association. Memorandum describes the charter of the company .on the other hand, Articles of Association refer to internal rules and regulations. The intend of this form is to simplify the procedure of registering a company in India.
Step 6: PAN AND TAN APPLICATION:
Pan and Tan form can also use for applying for company registration. Well, these forms automatically generate after submission of the SPICE form.
DOCUMENTS REQUIRED FOR REGISTERING A PRIVATE COMPANY :
There is two procedure that must have done for registering a private company in India.
1) Identity And Address Proof
2) Registered office Proof
Identity And Address proof
Scanned copy of PAN or Passport
Scanned copy of Voter’s ID/ Passport/Driver’s License
Scanned copy of the latest bank statement
Scanned passport-sized photograph
Registered office proof
Scanned copy of the latest bank statement
Scanned copy of Notarized rental agreement in English
Scanned copy of No- objection certificate from the property owner
Scanned copy of sale deed/ property deed
The time required to register the company :
The registration process of a company takes around seven working days for DIN, Name, and Incorporation. But using the MCA application form, the process has become much faster as all documents dragged in a single application. It is a good step for registering a company in a much quicker way.
Advantages of Creating a Private Limited Company:
1) Limited Risk:
The personal asset of a shareholder of a private limited company has limited liability. It increases the company liability by paying from shareholders. In that case, the shareholder takes less risk as compared to the company owners.
2) Legal Entity:
A private limited company provides a legal entity. It means that the company is responsible for its assets and liabilities. And you are not responsible for it. That’s why the creditors will not go against you to recover money.
Under the companies act 2013, all companies registered with ROC in India. Through the Ministry of Corporation, you can check the details of the company. Moreover, you will have all the information regarding the company's director. There it is trustworthy to build a small business.
FAQ (Frequently Asked Questions)
What are the preconditions to build a Private Company?
The member of the company must be 2-200, and there must have two shareholders and two directors. Moreover, each director should have Director Identification Number (DIN) and PAN card copy.
Are PAN and ADHAR necessary?
No, on 27th July 2016 the companies third amendment rule has been introduced to relax the company owner for mandatory attachment of identity and residence proof.
Can the private company allow a residential address?
Yes. For company registration, the ministry of corporate allows companies to register through their residential address.
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