PRIVATE LIMITED COMPANY
Private Limited Company Registration
Setting up a Private Limited Company in India requires a minimum of TWO shareholders and TWO directors. The shareholders can be the directors of the company. One of the directors, however, should be a Resident Indian.
Choosing the name of the company is a bit tricky! While choosing the name, one has to ensure that the Name
- Does not resemble the name of any other already registered company
- Does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950) by availing the services of checking name availability on the portal
- Select, in order of preference, at least one suitable name upto a maximum of Two names, indicative of the main objects of the company
Once the name is chosen, then file an application for the incorporation with Registrar of Companies (ROC), along with Memorandum and Articles of Association, particulars of directors, etc.
Digital Signature – All the directors have to mandatorily obtain the digital signature.
Once the application is processed by the Registrar of Companies, they will issue Incorporation Certificate mentioning a Corporate Identity Number (CIN)
We at Tirumalesh and Co., Chartered Accountants, have good working knowledge of setting up a company in India. In case you require our services, please write to info@catirumalesh.in
Frequently Asked Questions (FAQ)
Can small business get registration under the private limited company?
Yes, a small business can get its business registered under private limited company registration in India. It provides them with the credibility and an image of their business in the eye of the financial institution, suppliers and potential clients. It helps the company to get the loans at little compliance from banks or potential clients while entering into the deals.
What is the Director Identification Number (DIN)?
Any individual intends to become the director of the company must apply to the Director Identification Number, there is no special form is required to have the DIN from now onwards. One can apply for the DIN with the SPICe form. No special form is required.
Proof of the Identity and address is required to be submitted along with the requisite fee. The DIN usually takes 3-4 days to get approved. Once you get the DIN, the same can be used for the lifetime.
Is there any high qualification required to become a director or shareholder in the private limited company.
No, professional or educational qualification is required to become a shareholder in the private limited company. Any individual in the capacity of the person, with the sound of mind, can start a company.
What will be the address of the registered office of the company?
The Registered Office does not mean to be owned only; it can be rented premises also. The registered office is used for the purpose of holding a general meeting, keeping records and receiving correspondence from all the statutory government timely. It also specifies the jurisdiction of the registered office.
Benefits of small businesses in Private limited company?
It provides creditability to business in the eyes of financial institutions, suppliers and potential clients. It makes easier for companies to get loans at favorable rates from banks or in convincing potential clients while entering into deals.
Is a foreign entity allowed to be Director or shareholder of the private limited company?
Yes, any foreign nationals, entity or an NRI can become a director or shareholder of a private limited company in India.
What are the important documents required before starting up with the registration process?
The most basic and important documents required before starting up with the incorporation of the company is PAN card, Aadhaar card, ID’s, photo and contact details of all the directors, bank statement, electricity bill, rent agreement with the slip or proof of ownership.
How to Register a Private Limited Company?
- Apply for name reservation of the Company in Part-A of the SPICe+ form.
- Apply for Digital Signature Certificate which is required to file the forms of company registration. The Procedure to register a company is online and requires DSC.
- Within 20 days of the approval of the name of the company the SPICe+ form which is an advanced combination of 8 forms shall be filled up and applied at once.
- DIN- Apply Director Identification Number.
- File the necessary documents like MoA, AoA, EPFO, ESIC, Identity Proof, Address proof, PAN and TAN to go for Private limited company registration.
- It is mandatory to fill up the AGILE form to obtain the GSTIN.
- Once the file is submitted on the MCA portal, it shall be scrutinised and certificate of incorporation shall be granted by the MCA Officer.