The private limited company, being the first go-to option for many businesses, follows a step-by-step process for registration. With a few legal documents being ready, the registration could take place rather effortlessly. The registration would ensure that the company is legally recognised and would also attract the credibility of the clients.
A large number of start-ups and businesses choose private limited companies as their choice of corporate entity to carry out their business activities. Private limited companies are legislated under the Companies Act, 2013 and it falls under the Ministry of Corporate Affairs (MCA). A private limited company is a separate legal entity by itself and hence has a stark demarcation from its owners. Having a strong legal personality, a private limited company can therefore enter into contracts and also possess assets of its own. On the other hand, the shareholders of the company are vested with limited liability, which is proportional to the number of shares held by them.
Register a Private Limited Company in India:
The first and foremost step in incorporating a private company is to register a company in India online. Only after the registration does the company get a wholesome and legitimate business structure. Registering the company ensures the seamless flow of the business and also would avert the probable legal issues that might arise in the future. Registering the company would also elevate the company in the eyes of the potential customers thereby adding more credibility to the company.
Requirements for Registering a Private Company in India:
Just like any other corporate entity, incorporating a private company has its own set of requisites.
Members
- While a private limited company registration should have a minimum of two members the maximum number of members could be up to 200 in number.
- The Directors should hold a Director Identification Number (DIN), as directed by the MCA.
- At least one of the directors must be a resident of India.
Company Name:
- The company should have a proper name and should have the words “Private Limited Company” appended at the end. After having chosen the name of the company, the same has to be submitted to the RoCfor approval. It has to be kept in mind that the company’s name should neither be similar nor should bear a resemblance to any other company’s name.
AOA & MOA:
- The Articles of Association and Memorandum of Association are to be finalized.
Registered Office:
- Once the registration is done, the address of the registered office must be reported to the RoC.
Documents Required:
- It is of crucial importance that the business owner has all the legal documents handy.
- A Digital Signature Certificate (DSC) is of utmost importance, to verify the legality of the documents.
- ID proofs, such as a PAN card or a valid passport of the directors are to be furnished.
- Address Proofs such as Aadhar card or ration cards are required.
- Bank statements, electricity bills or telephone bills are to be submitted for proof of residence.
- If the company is in a rented space, then the rental agreement is to be furnished, along with a NOC from the owner.
- If the company is set up on its own property, then a copy of the sale deed is to be submitted.
Registration Process:
- Once the name of the company is finalised, an application should be made for the DSC and DIN.
- The availability of the name of the company should be verified.
- The MOA and AOA should be filed.
- An application for PAN and TAN should also be made.
Once the originality of the documents is verified, the Certificate of Incorporation of the Private Limited Company will be issued by the RoC: https://www.mca.gov.in/MinistryV2/incorporation_company.html. Thereafter, a current account in the name of the company is to be opened in a bank to handle the company’s financial transactions.
The process of incorporating a company might seem long-winded, yet it is a one-time task and if done impeccably, the working of the company would be very organized and wholesome.
