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?
- The shareholders need to be a natural individual or an artificial legitimate force.
- The two shareholders are required in a private limited company.
- Minimum requirement of two directors.
- The directors of the company must be a citizen of India.
- There must be 200 members maximum.
How to incorporate a private limited company?
- 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.
- 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.
- The DSC of the subscriber is required to document MOA (Memorandum of Association) and AOA (Articles of Association).
- The Director Identification Number (DIN) allotment is maintained by the Ministry to the individual who is a director of the company.
- DIN is as important as PAN.
- Then, for the reservation of the name an application needs to be filled.
- 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).
- 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.
- 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.
- The application is delivered by paying the requisite Stamp Duty as acceptable in the lawsuit of the worrying state on the portal.
- 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.
- After the confirmation of the application and statements provided, the concerned RoC may grant the Certificate of Incorporation (COI).
- COI is conclusive proof of the validity of the company.
- 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.
- 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.
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!