Private Limited Company registration process and How to startup Private Limited Company

Private Limited Company registration process is mandatory to get company registered in a proper way. For incorporation of Private Limited Company one should know how to conduct market analysis and identify the difference in consumers’ need. A private company is an organization which is owned and controlled by a private person. The minimum number of member in private limited company is two and the maximum number of member in private limited company is 200. It is an artificial person created by the law, it can act individually, it can sue and can be sued on its own name. It is separate from its owners and having a perpetual succession with a common seal.

One should consider the following point:

• Having an innovative plan
• Structuring your company, and
• Funding and marketing of a company

Startup and growing company prefer to be a private limited company as it is comparatively easy to raise the funds.

Steps to start a company

There are following steps which you should consider before starting up a new company.

Creativity and innovation is the most important part to make a company successful it helps in discovering an untapped market for product and services. Finding a great need of a consumer can form a successful company.

• Market analysis plays an important part to identify the needs and desire of a consumer.
• Consider the facts related to the consumer for example:
  • Age of the customer
  • Economic status
  • Education, and
  • Location

It will help to plan a structure of a company.

Steps or procedure to start a company are given below:

1. Apply for Directors Identification Number (DIN) and Digital Signature.
2. Select the type of a company
3. Select a name for your company
4. Drafting of a memorandum of association (MOA) and article of association (AOA)
5. Stamping and e-filing of various documents with the registrar
6. Payment of fees
7. Obtain a certificate of incorporation
8. Filing of a prospectus in lieu

Additional information

As per the rule 16(1) of companies incorporation rules, 2014. At the time of incorporation of Private Limited Company the following information must be filed by the registrar:

• Full name
• Recent photograph affixed with MOA and AOA
• Father’s name
• Date and place of birth
• Nationality
• Occupation
• Qualification
• Permanent Account Number
• Present and permanent residential address
• Phone number of subscriber
• Email id of subscriber

For Indian nationals

• Permanent account number
• Voter’s card
• Copy of the passport
• Copy of a driving license
• Unique Identification Number (UIN)

For foreign nationals and non-resident Indians

• Passport
• Residential proof such as:
  • Bank statement
  • Residential bill
  • Phone number, etc.
• If a subscriber belongs to a foreign country then the proof of nationality should be submitted.
• If a subscriber is already a director of any company then he should provide:
  • Company’s name
  • Corporate Identity Number

Private Limited Company registration

The most popular legal structure business in India is Private Limited Company registration process. The directors have limited liability to creditors. If company become a bankrupt then creditors can only sell companies assets and not the personal assets of the director. It is mandatory for every company in India to get itself registered with the registrar of a company.

The cost involved for Private Limited Company registration

The time required to register a company

Private Limited Company registration process takes a time as it needs to verify the information provided to get company registered. The whole process of:

• Approval of DIN
• Name, and
• Incorporation takes around 3 to 4 days.

The time will be as follows:

• Allotment of DIN takes 1- 2 days through form DIR
• Name approval takes 6- 7 days through Form INC 1
• Incorporation of Private Limited Company takes 7- 10 days through INC 7 and 22

Private Limited Company registration process

One can apply online by filling up the Private Limited Application Form. Where approaching professionals in the local area is really difficult and cost consuming nowadays you can take service of company registration online at an affordable price with and quick turnaround time, it includes a proper private limited company registration process.

There are few steps given below on how to register a Private Company:

Procure Digital Signature Certificate

It is the very first step involved in Incorporation of Private Limited Company. Filing of e-form on online portal of MCA, the Ministry has provided for online registration procedure for incorporation of Private Limited Company. DSC is issued by certifying authority in a form of token which is valid for 1 or 2 years. Subscribers are Directors for the proposed company are involved in company formation in India, the promoter of the company is a subscriber and he is required to file e-MOA and e-AOA by affixing DSC whereby making an online application the proposed director shall obtain DIN.

Documents which are required for Digital Signature Certificate

• Self-attested address proof of the applicant
• Self-attested PAN card of an applicant, and
• Passport size photograph of an applicant

Obtain Director Identification Number

It is a unique number assigned by Ministry of Corporate Affairs to the person who is making an application for allotment of DIN. The validity of Director Identification Number is for a lifetime unless it is withdrawn or surrender. While incorporation of Private Limited Company the director should obtain the DIN as it is mandatory to be appointed as the director of a company. The Director Identification Number can be used for the appointment in numerous companies and as a designated partner in LLP.

Documents required for the application of DIN

• Self-attested address proof of the applicant
• Self-attested PAN card of an applicant, and
• Passport size photograph of an applicant

Reservation of name

Before making an application to register the private limited company in India is in necessary to reserve the name for the proposed company. An application for the reservation of name shall be made in e-Form INC 1 by making payment of fees. Maximum 6 names can be provided in an application and the professional shall make a research for the availability of the name before filing the application. The registrar needs 100% description for approval of name application. The application shall be made for the approval of the name only after considering various provisions laid down by the act.

Rules to consider for applying a name

• The name should be easy to remember and spell.
• The name shall provide a distinct identity to the company.
• The short and simple name will be more preferable.
• Any work which opposes the public policy should not be a container in the name.
• The name should not infringe any trademark registered.
• It should not be similar to the name of any other registered company.

Certificate of Incorporation

The application for Certificate of Incorporation shall be made after submitting INC 1. By online submission of simplified proforma for incorporating company electronically, it is required to submit an application for online registration of the company. The Certificate of Incorporation issued will include the date of incorporation of Private Limited Company and the Permanent Account Number of the company.

Documents to accompany the application

• In form INC-9 affidavit and declaration by the first subscriber(s) and director(s).
• In form DIR-2 consent to act as a director.
• Certified true copy of self-attested identity proof of subscriber(s) and director(s).
• If premises is rented then the rental agreement of the registered office.
• NOC from the owner of the registered office address of the company.