Indian Private Limited Company Registration
A Private Limited Company (PLC) is a popular business structure in the country because it has limited liability and can change. This company structure is suitable for the growth and stability of the business units in the context of entrepreneurship. It is not rigorous work to form a private limited company all that is needed is to ensure that one complies with some legal formalities that are needed. Here, we will elucidate the following four important stages that can assist one in registering a Private Limited Company in India.
Step 1: Obtain a Certificate of Digital Signature (DSC) in step one.
The first step towards the registration of your company is to obtain the Digital Signature Certificate (DSC). While performing the registration process, a DSC should sign the forms presented before IRAS. As of right now, it serves as information for the company's directors and shareholders.
How to Get a DSC:
They can be obtained online from other accredited online DSC vendors such as E-Mudhra or Sify.
Show identification and proof of address (PAN or Aadhaar cards).
On confirmation of your details, you will be issued your Driving Skill Card.
Step 2: Your file should be assigned a Director Identification Number (DIN).
A DIN is necessary for every director of the company to act in that capacity legally. Most of the investors prefer to incorporate their new business through online mode through the MCA portal if you don’t have one then you have to apply through the portal of the Ministry of Corporate Affairs.
How to Apply for a DIN:
The applicant must complete and submit the DIR-3 form to the MCA.
For identification verification, kindly send a photocopy of your passport, Aadhaar card, or PAN.
You need to upload the digitally signed form using the DSC.
Once the DIN is approved, it is available to the director for use whenever making transactions.
Step 3: Name Approval
One of the main parts of creating a successful enterprise is the purposeful selection of a good name. The name given should be relevant to your brand image, and ideally, it should not resemble any name of another company registered under the Companies Act of Malaysia, unless it came under the MCA exemptions prescribed.
How to Apply for Name Approval:
You can apply for it using the MCA portal’s RUN (Reserve Unique Name) service, This will check the reservation of your company name.
You should write down two suggested names and any attachments.
This implies that the name will be available for your business for a maximum of twenty days after it has been registered with the MCA.
Step 4: MOU and AIM known as the ‘articles of memorandums’, joint drafting and signing.
The primary goals of the company's incorporation are described in the memorandum, and the association's articles specify how the business will be conducted. These want to be prepared and ought to be presented as compliance with the company registration requirement.
Step 5: File the Incorporation Application
You can start the incorporation process using the SPICe+ form, which is a Simplified Proforma for Incorporating a Company Electronically Plus if you have the approved name, the prepared MOA, and the AOA.
Steps Involved in Filing the SPICe+ Form:
If you haven't already, block the name of your business by completing Part A of SPICe+.
Fill the Part B of the memorandum, it involves essential information such as the registered office address, information on directors, and the share capital.
Together with the MOA and AOA, submit the DSC.
Include the registration fee, and the stamp duty (this may differ on your state and your authorized capital).
Step 6: Certificate of Incorporation
A Certificate of Incorporation is granted following the Registrar of Companies (ROC) verification of all supporting documentation. This certificate knows your Company Identification Number (CIN) and it is the legal proof that your Private Limited Company has been incorporated.
Step 7: Apply for PAN and TAN
However, on incorporation, it becomes obligatory for any company to get the unique number known as PAN from the Income Tax Department along with another number TAN.
PAN is required for all tax-related transactions.
Combination is needed when it comes to making tax recoveries or applying for tax deductions at source.
You get both PAN & TAN simultaneously through the SPICe+ form or individually through the NSDL facility.
Step 8: Open a Bank Account
For financial transactions, one has to open a corporate account with the bank of their choice. To open the account, the bank's directors will require the partnership agreement, articles of association, memorandum of association, articles of incorporation and bylaws, and know your client documentation.
Conclusion
The process involved in registering a Private Limited Company in India is as follows: Yet, so long one follows the right procedures and details all supported by the MCA guidelines, the process can be done perfectly. Some of the advantages intended after registering the limited liability are;
If you are thinking of starting your independent business venture you must read this article and follow legal requirements meticulously to lay a proper groundwork for your enterprise. In order to improve business outcomes additionally, you can try to expand and improve tools such as LeadNear, which is effective for generating leads for clients and business promotion from scratch as soon as possible.
