Process of registering a company as a Private Limited in India

Thinking of registering your enterprise, but do you worry about complying with all the legal guidelines? It’s not easy for new entrepreneurs to set up and launch their enterprise and also take care of the legal procedures concerning the incorporation of your company. We, at IMC, provide you expert services and solutions by registering your company at reasonable prices and also within a short turn-around time.

What are the steps to register a company as a Private Limited?

So the following four simple steps ensure you a flawless process for Private Limited company formation in India. Let’s see what these are

1.       Applying for Digital Signature Certificate (DSC)

The first step is to get Digital Signature Certificates of all the concerned people in this private limited company. You have to first fill the complete e-form available on the MCA portal as per the process prescribed by the Ministry along with all other applications. DSC is issued in a token form, which is valid for about a couple of years.

The personnel involved in the company are Subscribers and Directors for the proposed company. The Subscriber is the promoter of the company and proposed shareholders. The said shareholders are required to file e-MOA and e-AOA by affixing DSCs whereas the proposed directors have to obtain DIN by filling an online application.

Which documents are needed for getting Digital Signature Certificate?

• Applicant’s passport size photograph
• Self-attested address proof
• Self-attested PAN card copy

2. Get a Director Identification Number

Director Identification Number or DIN is basically a unique number, which is assigned to the applicant and allotted for a lifetime by the Ministry of Corporate Affairs. This number is valid until it is either surrendered by the applicant or is withdrawn by the relevant authorities.

The new company’s directors have to intimate the DIN when they incorporate their company. Therefore, getting a DIN is obligatory to be appointed as a director of a company. This number could also be used for appointment as a Designated Partner in an LLP.

Which documents are needed for applying for a DIN?

• Applicant’s passport size photograph
• Self-attested address proof of the applicant
• Self-attested PAN card copy of the applicant

3.  Reserving a name for the company

It is necessary to reserve an appropriate name for your new company before filing an application for its incorporation and registration. The application for reserving the name of your Private Limited Company is made by filling the e-Form INC – 1 along with paying the required fee. One application can have a maximum of six probable names along with its significance and in the order of your preference. The Registrar has 100% discretion in approving the name application.

The name should:

• Be easy to remember and with a simple spelling
• Provide a distinct identity to that company
• Be short and simple
• Not have any word which is opposed to public policy or is prohibited
• Not infringe any registered Trademark or should not be identical to any existing company or registered LLP

After the application is approved, the registrar reserves the finally selected name for about a 60-day period. Now, the requisite professional guides the promoters to apply for incorporation of the new company within this prescribed period of 60 days. If the company fails to do so, the reserved name would lapse and then a completely new application will have to be filled.

4. Incorporation Certificate

After the name of your company has been reserved, the next step is to apply for issuing a Certificate of Incorporation. The application for online registration needs to be done by submitting the Simplified Proforma for Incorporating Company Electronically or SPICe forms online.

MoA & AoA drafting procedure

MoA and AoA are basically charter documents needed for registering a Private Limited Company. MoA means Memorandum of Association and AoA stands for Articles of Association.

MoA lists the detailed scope of functions and operations of the company by stating the object and various activities it will perform. Whereas, the AoA details the manner in which the company’s operations and administration will be undertaken.

These documents should also be filed in SPICe forms coupled with the company formation and registration applications. The payment to MoA and AoA is made by attaching the DSCs of subscribers in the online form.

Which documents need to be attached with the application?

• NOC and a copy of the Utility Bill from the owner for the company’s registered official address;
• Rental Agreement of the new registered office along with the rent receipts, in case the office is rented;
• Consent to act as a director by filling the form DIR – 2;
• Affidavit and declaration by first director(s) and first subscriber(s) in the form INC – 9 (duly notarized);
• Self-attested identity proof of the first subscriber(s) and director(s).
• The application has to be submitted along with the prescribed government fee and stamp duty as per the state. The PAN and TN number generation application is also processed along with this application.
• Once the Registrar is satisfied, the Certificate of Incorporation is issued with his seal and signature.

So once you get a Certificate of Incorporation, you also need to getGST registration in Indiaand then your Private Limited Company is ready to start its business activities and operations.