The private limited company is the most common and successful type of corporate legal entity in India. Private limited company registration is directed by the Companies Act, 2013 and the Companies Incorporation Rules, 2014. To enrol and register a private limited company, a minimum of two directors and two shareholders are required. The MCA has recently implemented important changes to the process and executed it very easy to incorporate a company.
Private Limited Company Registration Process
Step 1: Obtain a Digital Signature Certificate
The first step is to get the DSCs of the directors involved in private limited company Incorporation in India. The condition of DSCs results for choosing e-forms on the online portal of MCA as the Ministry has ordered for the online registration process for company incorporation and other purposes. Digital signature certificates, generally known as DSC are declared by the certifying specialist in token form and are valid for 1 or 2 years.
The person involved in business development in India is directors and subscribers for the proposed company. The subscriber is a person who is the promoter or supporter of the company and proposed shareholders. The stated shareholders are expected to file e-AOA and e-MOA by attaching DSCs whereas proposed executives shall receive DIN by making an online form in the next step.
List of Documents Required for Digital Signature Certificate:
- Passport size photograph of the employee.
- Self-attested PAN card of the applicant.
- Self-attested Address proof of applicant.
Step 2: Get Director Identification Number
Director Identification Number (DIN) is a unique number allocated by the Ministry of Corporate Affairs to the person making an application for allotment of DIN. The number is given for a lifetime by the ministry unless it is withdrawn and surrendered.
The administrators of the company shall receive and suggest the DIN during private limited company incorporation. Therefore, getting DIN is compulsory to be selected as a director in any company. The Director Identification Number received can also be applied for approval on any other business and appointment as a preferred partner in the LLP.
Step 3: Reservation of Name
Before starting an application to start Pvt ltd company registration, the name for the stated company shall be saved. An application for the reservation of the name of your private limited company shall be executed in e-Form INC – 1 by obtaining payment of necessary fees. In one statement you may produce maximum 6 names in special order along with the importance for application for the suggested name(s). The selected professional shall examine for the availability of name before choosing the application so that the person can make application of the names respectively. The registrar owns 100% consideration for the permission of name application.
The person shall obtain an application for name support considering the requirements set down by the Act. Moreover, the following common methods are adhered to choose and apply the name:
- The name should be simple and easy to spell and identify
- The name shall be able to afford a clear identity to the business or company
- It should be concise & short
- Further, the name should not include any word as opposed to public policy or prohibited
- It should not violate any trademark registered nor shall be comparable or equal to any company or LLP registered.
As declared above, the request for name reservation can be done with maximum 6 names, out of which the register may accept any one name or may ask to give added names with remarks.
Once the statement made is accepted, the registrar shall hold the same name for 60 days. The promoters in guidance with the expert shall request incorporation of the company within the designated period of 60 days, failing to which the title saved shall lapse and hence fresh request shall be given for reservation of name for an additional period of 60 days.
Step 4: Certificate of Incorporation
After the reservation of the sign for the proposed business by submitting form INC – 1, the request for issuance of Certificate of Incorporation shall be executed. The application for online filing for the company is also expected to be made by online submission of Simplified Proforma for Incorporating Company Electronically i.e. SPICe forms.
Drafting MoA & AoA
Both the AoA and MoA are charter documents for a private limited company. MoA stands for Memorandum of Association of company and the AoA is known as the Articles of Association.
The memorandum of association of a company designates the scope of services of the company by identifying the main purpose and actions of the company, whereas the articles of association outline the manner in which the services and administration shall be undertaken. Both documents having the necessary importance shall be selected very carefully after consultation with a professional such as the experts at Vakilsearch.
The memorandum and articles of the company shall further be registered in SPICe forms along with the request for company development and registration in India. The approval to MoA and AoA shall be delivered by affixing DSCs of subscribers in an electronic form.