How to incorporate a Pvt. Ltd. company?

The private limited company is a private firm, where all the shares are sold to the shareholders. This type of company is difficult to dissolve. In India, about 93% of the companies are enlisted under the Private Limited Company as it is a modest and popular form of business.

The private limited companies are legislated by the Ministry of Corporate Affairs. 

If you are looking to establish a private limited company, you are at the right place. Read on to know more about the incorporation procedure in detail.

What are the boons of the private limited company?

  • By transferring the shares, it is easy to collect funds.
  • Before the minimum number of the share capital was Rs 1 lakh. But now, there is no minimum capital required.
  • No pressure of fund requirements.
  • No risk to personal properties.
  • It is a separate legal force.
  • The members are given a limited liability.
  • The company is very difficult to dissolve.
  • The transfer is clear as distinguished to the transfer of a dividend in a company race as a proprietary responsibility or a treaty.

What are the necessities for the private limited company?

  1. The shareholders need to be a natural individual or an artificial legitimate force.
  2. The two shareholders are required in a private limited company.
  3. Minimum requirement of two directors.
  4. The directors of the company must be a citizen of India.
  5. There must be 200 members maximum.

How to incorporate a private limited company?

  1. The first step is to register to a private limited company and obtain the DSC (Digital Signature Certificate) of the Directors and Subscribers to MOA.
  2. The e-form is documented with the Ministry after attaching the DSC of the Authorised Signatory for Company Incorporation. It is also required for the petition of the DIN of the directors. 
  3. The DSC of the subscriber is required to document MOA (Memorandum of Association) and AOA (Articles of Association).
  4. The Director Identification Number (DIN) allotment is maintained by the Ministry to the individual who is a director of the company.
  5. DIN is as important as PAN.
  6. Then, for the reservation of the name an application needs to be filled.
  7. The application is to be made in Form INC-1, where one can assign a maximum of six names in order of choice (the names applied are not similar or nearly matching any surviving Company or LLP or Registered Trademark).
  8. After the approval of the name, the applicant is stored for 60 days, in the remaining time one has to apply for the Incorporation of the Company, non-compliance of which leads to isolation of the name approved by the Ministry.
  9. After the reservation of the name, one shall continue preparing an Application of Certificate of Incorporation in SPICe form supported by SPICe MOA and SPICe AOA.
  10. The application is delivered by paying the requisite Stamp Duty as acceptable in the lawsuit of the worrying state on the portal.
  11. Once the application is accepted, the form for application of PAN and TAN of the company is developed online, which shall be accepted after connecting the DSC with MCA.
  12. After the confirmation of the application and statements provided, the concerned RoC may grant the Certificate of Incorporation (COI). 
  13. COI is conclusive proof of the validity of the company.
  14. Whereas, the Date of Incorporation, Company Identification Number (CIN), and Permanent Account Number (PAN) is referred to with the signature and stamp of the Registrar.
  15. After the Certificate of Incorporation is approved, the company may start up the Business workout as the incorporation procedure is finished.

What are the documents required for incorporation?

  • NOC from the property owner.
  • If the Director does not have a DIN, then address proof and identity proof must be attached.
  • According to the Trade Mark Act, it is mandatory to attach the trademark registration certificate or trademark application document.
  • Affidavit on a Stamp Paper is to be given by all the members of the Company to state their eagerness to serve as the shareholders of the Company.
  • Address proof.
  • Rental agreement.
  • Utility bills paper.
  • Central Governments approval copy.

Conclusion:

Because of the stability provided in a private limited company, it is one of the top preferences of a majority of people and by following the procedure of registration with accuracy, you can get started with your own Pvt. Ltd. Company smoothly!

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