The Ministry of Corporate Affairs regulates private limited companies in India (MCA). DOCS PLANNER makes it simple to register a business because everything is done online.
AS PER COMPANIES ACT 2013 SECTION 2(68) PRIVATE COMPANY MEANS:
A company having a minimum paid-up share capital as may be prescribed, and which by its articles,
- restricts the right to transfer its shares;
- except in case of One Person Company, limits the number of its members to two hundred;
- prohibits any invitation to the public to subscribe to any securities of the company.
It is highly recommended that you register a private limited company because this type of business gives shareholders limited liability and places certain constraints on ownership.
Private Limited Company is the most popular type of business entity in India. As of January 2022, there were over 1.43 million registered companies in the India.
Pre-requisite of Private Company registration
| 1.No of Shareholders (Minimum) | 2 Persons |
| 2.No of Directors (Minimum) | 2 Individuals |
| 3.Authorized Capital | There Is No Any Limit |
| 4. Obtaining Digital Signature Certificate | Required by Each Director |
NOTE : This is just a primary requirement the no of directors can be increased to 15 by passing special resolution and the number of shareholders can be increased to 200.
Following documents are required for obtaining digital signature certificate
- Passport size photograph.
- Identity Proof like Pan card.
- Address Proof like Aadhar card.
Note: Once Your DSC Has Been Approved, You Have To Associate Your Dsc With MCA
Documents Required For Private Limited Company
Case 1:If A Person Is Already A Director In Any Other Company:
- PAN CARD
- AADHAR CARD
- BANK STATEMENT (NOT OLDER THAN TWO MONTHS)
- PASS PORT SIZE POTOH
Case 2: If A Person Is Not A Director In Any Other Company
- PAN CARD
- AADHAR CARD
- BANK STATEMENT (NOT OLDER THAN TWO MONTHS)
- PASS PORT SIZE POTOH
- ANY ONE DOCUMENTS ARE REQUIRED FROM BELOW:
- PASSPORT
- VOTER ID
- DRIVING LIECENCES
Steps for the formation of the private limited company
STEP 1 – Application for the name approval through RUN (Reserve Unique Name)
The first and foremost step in the company registration process is reserving the name of the company
There are two ways to go for it:
- RUN
- Spice
RUN or Reserve Unique Name is a web form in the website of the Ministry of Corporate Affairs, wherein applicants can check if their new business name is available or not and then apply for a desirable name for the company.
The applicants must provide two names in preferential order and must follow all the norms of the ^naming convention. Once MCA approves a company name, it’s reserved for 20 days within which the applicant must complete all the remaining steps required for company registration. You can visit the RUN web service by the Ministry of Corporate Affairs.
MCA checks three important factors while approving the company name:
1. The name should be distinctive and should not be used by any other company (public or private).
2. The name should not offend anyone.
3. The name should not imply that it is associated with the government.
STEP 2: Procuring Digital Signature Certificate
Once the company name has been approved by MCA and registered, the next step is procuring a Digital Signature Certificate for your private limited company
For obtaining a Digital Signature Certificate, the applicant needs to contact any one of the authorized agencies approved by Govt for the same:
1)IDRBT Certifying Authority (https://idrbtca.org.in/)
2)E-mudra (http://www.e-mudhra.com/)
3)Code Solutions (https://www.ncodesolutions.com/)
4)Safescrypt (http://mcacert.safescrypt.com/home.html)
6)Tata Consultancy service and National Informatics Center (https://nicca.nic.in/)
Step 3: Filing for Incorporation of Private Limited Company
Once the name approval, promoters should submit the application, prescribed fees, and below said following documents to the registrar:
- Articles Of Association In Form Inc-32
- Memorandum of Association In Form Inc-33
- Declaration from Directors In Form Dir-2
- Affidavits of the Directors In Form Inc-9
- AGILE PRO IN Form Inc-35
STEP 4: Certificate of Incorporation
After filing the above-mentioned documents and payment of necessary fees, the concerned RoC may grant the Certificate of Incorporation (COI).
It is a conclusive proof of existence of the company, wherein the date of Incorporation, Company Identification Number (CIN) and Permanent Account Number (PAN) is mentioned with the sign and seal of the Registrar.
Once, the Certificate of Incorporation is granted, the company may commence the Business Activity as the Incorporation.
The process to register a private limited is complex and time-consuming. Our team at MAA PRANAAM SUVIDHA LIMITED can help startups and Entrepreneurs to Register Private Limited Company.