Step By Step Guide to Form a Private Limited Company
A private limited company (PLC) is a privately held business entity. The liability of a private limited company's members is limited to the number of shares held by that member. A PLC is governed by companies act 2013 and minimum number of shareholders needed to start a PLC is two while maximum limit of members is 200.
What are the Key Benefits of Private Limited Company?
There is a limited liability in a PLC Company that means the company members are not at the risk of losing their private assets. If your company fails, then the shareholders of your company are liable to sell your assets for the payment.
As we know that the company's shares are owned by investors, management and founders, so the company owners are at the liberty of transferring and selling their shares to others as well.
A private limited company can be stated with two shareholders unlike a public limited company that needs seven shareholders.
The company stays a legal business entity until it is legally shut down, the business entity runs also after the death or departure of any member.
Steps to Register a Private Limited Company
There are only four steps to register a private limited company in India within a time period of 15 days to 18 days.
Step 1: Obtain DSC for Directors and Subscribers
The first step to register a PLC is to get the DSC (Digital signature certificate) of the directors and subscribers to MoA. Any e-form is filed with the ministry after fixing the DSC of the authorized signatory for company registration. It is also needed for the application of DIN of the directors. DSC of the subscribers is required to file MoA and AoA.
Step 2: Get DIN for Directors
The DIN (director identification number) allotment is carried out by the ministry to the person for acting as director in a company. Also, DIN is unique like a PAN card to any individual and that is applied and allotted once in the lifetime.
Step 3: Company Name Approval
It involves making an application for the reservation of names for the company. The Application is to be made in form INC1 where you can apply for a maximum of 6 names in order of preference. You need to keep in mind that the names applied are not identical with any existing company or LLP and partnership firm registration or registered trademark.
Once the name of the company is approved, it is reserved for you for a period of 60 days, in which you have to apply for company registration, non compliance of which leads to the withdrawal of the company name by the ministry.
Step 4:Application for Certificate of Incorporation
Once the company name is reserved, you will proceed to make an Application of Certificate of incorporation in SPICe form accompanied with SPICe_MoA and SPICe_AoA.
Now the application is submitted by paying the stamp duty as application in case of concerned state on the website. Once the Application is submitted, the form for application of PAN and TAN of the company is generated online that will be duly submitted after affixing the DSC with MCA.
Let's know about the formulation of MoA and AoA
MOA (memorandum of association) and AOA (articles of association) are two most vital documents for any company and marks the last step in the process of company registration. Verification of the application and documents provided and the concerned RoC may grant the certificate of incorporation. This is a proof of existence of the company wherein the date of incorporation, company identification number and permanent account number are mentioned with the sign and seal of the registrar. Once the Certificate of incorporation is given, the company can commence the business activity as the incorporation procedure is done.
What documents are required for private limited company registration in India?
The major documents required for a PLC Company Registration are mentioned below:
- ID proof- Passport and Pan Card
- Address proof- Aadhaar card, driver license, voter id or ration card
- Notarized rental agreement and NOC ( No Objection Certificate) from the property owner
- Residence proof- Bank statement of electricity bill or water bill.
How ExpertBells can help you in Registering a Private Limited Company in India?
ExpertBells can help individuals and entrepreneurs in incorporating a Private Limited Company in India in less than 2 weeks but this is subject to government processing the availability of the documents.
Step 1: Once a request is received, a business professional of ExpertBells reaches to you and understands your business needs. Later, he advises you on the best suitable entity.
Step 2: A professional and experienced relationship manager is assigned who will collect all the required documents for company registration.
Step 3: An Application is submitted for getting DSC and a name request is sent for approval to the ministry of corporate affairs.
Step 4: The incorporation documents are drafted once the name is approved. These Important documents need to be signed by all the directors and shareholders.
Step 5: Once all the directors and shareholders have signed the document, they are sent for approval to MCA.
Step 6: Once your private limited company is registered, an incorporation certificate is given to you along with the Pan and tan for the directors.
Apart from private limited company registration, ExpertBells provides other Registration services such as Limited Liability Partnership (LLP) Registration, GST monthly return filing, trademark registration, Section 8 Company Registration and one person company registration.
The new changes made by ministry of corporate affairs in company registration have made it very easy and simple to register a company of any nature with the Indian government. But, you must have all the needed documents in place, and it takes less than 12 days to register a company formally. If you need any help or advise on private limited company registration in India, feel free to contact ExpertBells.