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The private limited company is the most successful business type in India. Private Limited Companies are an ideal way of starting and structuring startups with a higher scope of expansion as compared to other forms of business due to the advantages of high credit worthiness, greater stability and separate legal entity.
In this article, we have elaborated the Five Steps for private limited company registration in India by following the fast track method.
Minimum Requirements for a Private Limited Company:
2 Shareholders (shareholders can be same as directors)
Checklist for Incorporation:
|Required from Client||Prepared and Delivered by VenturEasy|
• One photograph
• Copy of PAN Card
• Copy of any address proof (Aadhaar Card, Driving License, Passport)
• Copy of Bank Statement or Mobile Bill
• Proof of Registered Address – Sale Deed, Rental Agreement etc
• Copy of any utility bill (Electricity, Telephone, Gas Bill) not older than two months.
|• DSC Application
• DIN Application
• Memorandum and Articles of Association
• Affidavits and Declaration by Directors/Shareholders
• No Objection Certificate for use of premises, if required
• Incorporation Forms
• Booklet containing the Memorandum, Articles and the Certificate of Incorporation (after the Company is formed).
Step 1: Apply for Director’s Digital Signature Certificate: Digital Signature is
for using the signature in an electronic format and is required for filing the incorporation applications with the Registrar of Companies (RoC). A self-attested copy of the proof of identity and proof of address along with the DSC application form is sufficient to obtain the Digital Signature.
It takes around 1-2 days to get the DSC. The Form INC-29 requires the signature of any one director. Hence, it is sufficient, if only one director obtains the DSC.
Step 2: Apply for DIN of one Director: Director’s Identification Number (DIN) is the unique identification number allotted by the Ministry of Corporate Affairs to a person who intends to become a director of any company. The same number is applicable for all the companies in which a person is or intends to be a director. The proof of identity and address of the proposed director along with an affidavit in Form DIR-3 is required for making the DIN application.
It takes around 1-2 days to obtain the DIN. Form INC-29 requires the DIN of any one director. There is no need to apply for the DIN of the other directors beforehand.
Step 3: Choosing a Company Name and Address:
Choosing a Company Name: It is the most tedious task. Certain important points should be kept in mind for choosing an appropriate company name.
• Make sure that the Company name is unique and does not resemble the name of any other existing Company or LLP.
• It is easier to obtain a name if it depicts the objects of your company.
• In case of Technology based companies, use of a word which describes your electronic mode of operations is necessary. For eg: Technologies, InfoTech, e-solutions etc.
• The name should not include any word which is a registered trademark or has been applied for Trademark registration. Form INC-29 provides only one option for filling the Company Name. Hence, the name should be chosen carefully before moving ahead.
Choosing a Company Address: You can use any premises as the registered office of your company. There is no restriction on using a residential address as a registered office.
A registered office primarily acts a place where all the correspondences relating to your company shall be communicated. The books of accounts of the company should also be kept at the registered office of the company. The following documents should be available at your end for the said premises:
• Address Proof of Proposed Place of Business such as Sale Deed or Rental Agreement of Registered Office
• Utility Bill (Electricity, Telephone, Gas Bill etc) in the name of the premises – not older than 2 months
• No Objection Certificate (NOC) for use of premises as Registered Office, if owned by a person/entity, other than the directors. In case you do not fix any premises as a registered office at the time of incorporation, you may update your company address later within a period of 30 days from the date of incorporation by filing relevant form and the corresponding address proofs, as mentioned above.
Step 4: Preparation of the Memorandum and Articles of Association:
The Memorandum and Articles of Association form the constitution of the Company. The Memorandum of Association is the primary document which contains clauses relating to the Main objects, location of registered office and the capital of the Company.
The Articles of Association contain the broad guidelines, within the framework of law, to which the company is bound at all times. Both these documents should be prepared carefully, taking legal help so that it is accurate from all perspectives.
Step 5. Filing Form INC-29: After all the above steps are completed, the single Form INC-29 is filled and submitted along with necessary attachments. This is the final step towards Company Registration.
The form has to be digitally signed by one director of the Company and a practicing professional (such as a CA, CS or CWA). Once the form is submitted to the RoC, it scrutinizes the same and provides intimation usually within 2-5 working days. However, the approval is completely subject to the RoC processing time.
If you would like to start a private limited company, please send an email to [email protected]
Nikita Bhatia is the co-founder of VenturEasy, an online platform for Company registration, book-keeping, accounting, tax consultancy and legal compliances in India. A Chartered Accountant and company secretary by profession, she has wide experience in the fields of audit, accountancy, taxation and corporate governance.
For any queries/ discussions, email at [email protected]