Step 1-Apply for issue of Digital Signature Certificate (DSC) and DIN of Promoters
Issue of Digital Signature Certificates (DSC) and allotment of Director Identification Number (DIN) of promoters is necessary for registration. For online filing of eforms on the MCA portal, DSC of promoter will be required.
Step 2-Check Company’s Name and apply for Name Approval of Company
Check the availability of suggested names as per Name Availability guidelines and then, apply for approval of name of the Company. Name is reserved for 60 days. For Search of Company’s name, click the following link http://www.mca.gov.in/mcafoportal/showCheckCompanyName.do
Step 3-Submission of SPICE registration documents with MCA
SPICE registration eforms along with documents such as MoA, AoA, declarations, premises utility bill, consent of directors and owner of premises will be filed with MCA. After approval, registration is completed.
About a Private Limited Company?
A Private Company is a corporate legal entity, registered and regulated under the Companies Act. In this type of Company, ownership and management is closely held in the hands of family members or a group. Only 2 promotes are required for registration of a Private Limited Company. This business structure is the most famous business structure in India.
In India, the Govt, has simplified the procedure for registration under the Ease of Doing Business in India. The Govt. has introduced the Simplified Proforma for Incorporation of Companies Electronically (SPICe) scheme for allotment of DIN, Name Approval and Registration of Company in a single step, thereby significantly reducing the time taken for registration a Company. Also the application for PAN, TAN and ESIC can be submitted at the time of incorporation.
Advantages of Private Limited Company
The greatest benefit of Private Limited Company is Limited Liability. The Company owners are not personally liable for Company debts. They can focus on their business growth and run the business efficiently.
In case our business needs more financial resources for business growth, forming a Private Limited Company definitely helps. Banks are comfortable in giving adequate funding thus increasing business profits and customer satisfaction.
Private Limited Company enjoy permanent succession because the Company has its own legal entity. Our business continues for long and can be easily transferred. Regular Business not only benefits owners, but also creates resources for the community.
FAQs on Company Registration
How many Persons are required to register a Private Limited Company in India?
For registration of this Company, only 2 promoters are required. Any natural person who is major or a Company can be a promoter in a Private Limited Company.
What is Director Identification Number (DIN) and DSC stands for? Are they mandatory for registration of a Private Limited Company?
DIN is a unique number allotted by MCA only once in the lifetime to a proposed Director. DSC is a Signature used for online filing of all documents on MCA portal. They are both mandatory for registration of a Private Limited Company.
What are the documents required for registration of a Private Limited Company?
Colour Photographs, Identity Proof such as PAN/Passport/UID/DL/Voter Card and Address Proof such as Bank Statements/Utility Bills of promoters are required. Premises utility bills and owner consent will also be required.
What is the time taken for registration of a Private Limited Company?
Now, the govt. has simplified and speed-up the registration process. It generally takes one week for registration. However, govt approvals may sometime take a longer period due to technical and other reasons.
What is the cost of registration of a Private Limited Company?
Govt. Fee will depend upon a number of factors such as authorised share capital, state of registered office, availability of DIN and DSC of promoters. We can provide you customized quote as per your requirements.
What are the documents required to be filed by the Company after registration?
The Company has to file its audited financial statements and shareholders/directors details every year besides some other regular documents. Cost of these filings is nominal as compared to the benefits that can be taken in case of a Company.
Can I transfer my shares to any other person?
Yes, the shares held by a member can be transferred to any other person by signing a Transfer Deed between the parties, subject to the provisions of Bye-Laws. Also, the shares can be gifted to a relative. The Company will register the transfer on receipt of documents.