Private Limited Company Registration
Private Limited Company should be the preferred choice of business if you are planning to raise funding. It is a privately held business entity with limited liabilities.
It allows a significant degree of separation between operations and ownership. It gives investors a choice of exiting the company without any hassle by just selling the shares without being liable for company affairs.
If a business is planning to go global, then the Private Limited Company is the only form which allows 100% Foreign Direct Investment, without any prior government approval.
To set up a Private Limited Company, one needs to:
Have a company address
‘Company Address’ is the address of the Registered Office of the proposed company which is used for all official communications. A temporary address is required, at the time of registration, which could be the address of any of the including Directors. Post registration process applicant has to provide the permanent business address of the registered office with all the documentary proofs of address, ownership.
Appoint at least two directors
Minimum 2 Directors are required to manage the affairs of the company who can be same as shareholders. At least one of the directors has to be a Resident of India. To be a Director of a private limited company, one must have a DIN
Apply for DIN and DSC for EAS Director
DIN is an eight digit number allotted to every director. No person can become a director without first applying for DIN. It is a unique identification number for an existing director or a person intending to become one, and it is allotted by the Ministry of Corporate Affairs (MCA).
Have at least two Shareholders
Minimum 2 shareholders are required in a company limited by shares. They can be Natural or Artificial Persons such as registered companies or LLP. A shareholder can be same as the director of the company. Maximum of 200 shareholders are allowed, shareholders are the owners of the company, and they have certain rights as shareholders need to vote for appointing directors and agree on changes to the company.
Draft Memorandum of Association (MOA)& Articles of Association (AOA)
Memorandum of Association (MOA)
MOA is a document which contains the objective and power of the company and defines the relationship of the shareholders with the company.
It must be drafted at the time of incorporation and must contain six clauses revealing the company name, registered company address, its limited liabilities, share capital, company objects, and association of the shareholders and other stakeholders with the company.
Articles of Association (AOA)
AOA are the by-laws of the company which specifies the regulations for a company’s operation. It defines the roles and duties of the directors and other officers of the company. Information such as the total number of members, share capital, rules for a meeting of the company, voting power of members must be included in the AOA.
The company may alter it by passing the resolution at a general body meeting of shareholders. Also, AOA may or may not be registered.
File INC-32 to Register The Private Limited with MCA
Spice E-Form INC-32 along with link Form Spice MOA (INC-33) and Spice AOA (INC-34). is filed for the incorporation of the company. Spice E-Form INC- 32 is a simplified way to get Director Identification Number (DIN), Name Approval and Incorporation process. It’s a fast track mode to get the company incorporated in the expedited manner. After filing the same Certificate of Incorporation has been issued by MCA within 2 to 3 days.
Brief about Spice Form INC-32 (Replaced Form INC-29)
Spice means Simplified Proforma for Incorporating Company Electronically. MCA has facilitated the process of incorporation by introducing SPICE E-Form INC-32 with effect from 01/11/2016. It is a simplified process of incorporating a company. This process provides the same facilities as earlier in E Form INC-29 but the only difference between the two is introducing the filing of Memorandum and Articles electronically in Spice MOA and Spice AOA. Now, Spice E Form INC-32 is filed along with link form Spice MOA (INC-33) and Spice AOA (INC-34). After filing such form, Certificate of Incorporation has been issued by MCA within 2 to 3 days. In such process Aadhaar Card is mandatory for obtaining DIN of Director. This process has been introduced for saving lot of time and for ease of business.
Obtain Certificate of incorporation from ROC.
Certificate of Incorporation is a certificate issued by the Ministry of corporate affairs/Registrar of companies for the commencement of business; it is a confirmation of and conclusive evidence of incorporation of a company.
Documents Required For Registering A Private Limited Company
All directors and shareholders need to provide Self-attested copy of
- PAN Card
- ID Proof (Aadhar card/ Voter ID/ Driving license)
- Address Proof in the name of director (Any utility bill i.e., mobile bill/water bill/ electricity bill, or bank statement which should not be older than two months)
4 Passport Size Photographs.
Address proof of Registered office
- Any utility Bill (i.e., mobile bill/water bill/ electricity bill) of the registered office
Frequently Asked Questions
WHAT IS DIGITAL SIGNATURE CERTIFICATE AND WHY IS IT REQUIRED FOR COMPANY INCORPORATION?
Digital Signature Certificate (DSC) as the name suggests it is a digital signature of an individual and it is required for filling the e-forms of company incorporation electronically to Ministry of Corporate Affairs.
WHAT ARE THE DOCUMENTS REQUIRED FOR PRIVATE LIMITED COMPANY INCORPORATION?
Following are the documents required for company incorporation for each director/ shareholder
- Self attested PAN card copy.
- Four Photographs.
- Self attested copy of any one of the Identity Proof like Driving License, Passport, Voter ID & Aadhar Card
- Self attested copy of the Address Proof like Bank Pass Book / Bank Statement, Telephone Landline Bill, Mobile Bill & Electricity Bill
- Company Address proof any one of the Electricity Bill, Telephone Bill, Mobile Bill & Gas Bill, and Rent Agreement, (if rented) AND NOC for doing Business & for taking Registration.
WHO CAN BECOME A DIRECTOR OF A PRIVATE LIMITED COMPANY?
The Director required to be above 18 years of age and must be a natural person. He may or may not be citizen or residence of India. We can say that even a foreign nationals can be Directors in Indian Private Limited Company.
DO PROMOTERS HAVE TO BE PRESENT PERSONALLY TO INCORPORATE A COMPANY?
Yes, promoters need to be present to personally meet us at our office or meet at any place for the registration of a Company. All the incorporation documents required to be present in original and scanned copy also required to submit
WHAT IS COMMON SEAL?
The Common Seal is the official signature of the company. Any documents on which Common seal is affixed, is deemed to be signed by the company.
WHAT IS THE LIMIT OF MEMBERS TO FORM A PRIVATE LIMITED COMPANY?
In case of Private Limited Company, minimum no. of members are two and maximum are two hundred.
HOW MUCH MINIMUM CAPITAL REQUIRED TO FORM A PRIVATE LIMITED COMPANY?
In case of Private Limited Company, minimum capital required is Rs.1,00,000/-.
HOW MUCH TIME WILL IT TAKES TO INCORPORATE A PRIVATE LIMITED COMPANY?
To incorporate a company we required approximately 5 to 8 working days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy process of incorporation, please choose a unique name for your Company and ensure you have all the required documents are provided before starting the incorporation process.
CAN NRI/FOREIGNERS HOLD SHARES OF A PRIVATE LIMITED COMPANY?
Yes, subject to Foreign Direct Investment (FDI) Guidelines a NRIs / Foreign Nationals / Foreign Companies can hold shares of a Private Limited Company.
WHAT IS DIN (DIRECTOR IDENTIFICATION NUMBER) AND WHY IT IS REQUIRED?
The Unique Number is required to allot to an Individual which remains valid for whole life of the individual and is required to become director of any company.
HOW CAN WE SELECT A NAME OF COMPANY UNDER REGISTRATION?
Firstly we just need to find a unique name as prefix and promoters need to provide name of the proposed company along with significance of word. Secondly the name needs to include a word about the company business activity. Finally before selecting Names it will be advisable to check on Google, MCA Portal, MCA Guidelines and Trade Mark site the availability of Name.
WHAT IS MEMORANDUM OF ASSOCIATION & ARTICLE OF ASSOCIATION?
MOA & AOA of the company defines all the rules and regulations and the working flow of company. It also defines everything about the company’s objects, capital, identity, goals and working pattern. After the name of the company is select the Memorandum of Association and Articles of Association of the company is required to be drafted, the last page of the MOA and AOA is known as subscriber sheet which need to be filled in by the promoters in their own hand writing including their personal details and shareholding ratio.
WHAT IS CERTIFICATE OF INCORPORATION OF THE COMPANY
Get the certificate of incorporation along with PAN & TAN within 6 to 10 days after uploading the Spice e-form INC-32, Spice MOA(INC-33), Spice AOA(INC-34) along with Form 49 A(PAN) and 49 B(TAN).
WHAT IS THE REGISTRATION PROCESS FOR PRIVATE LIMITED COMPANY?
We are the most sought after partner in India for registering a Private Limited Company using Spice Form INC-32. The whole registration process would take between 7- 10 days. This is subjected to ROC processing time.
Digital Signature Certificate(DSC) AND DIN (Director Identification Number) is required for the proposed Directors of the Private Limited Company. It can be feasibly procured for the proposed Directors within 1 to 2 days.
Select a company name after referring to the MCA Name and Trademark database. We will prepare the documents as per your suggested name and get your signature on all documents required to be signed for submission to the Ministry of Corporate Affairs.
All required documents need to be submitted with Spice E Form INC-32 alongwith link Form Spice MOA (INC-33) and Spice AOA (INC-34). Once the name is accepted and documents get verified, MCA will issue Certificate of incorporation within 2 to 3 days.
WHAT ARE THE STATUTORY COMPLIANCE FOR A PRIVATE LIMITED COMPANY?
In case of Private Limited Company, minimum no. of directors are two and maximum are fifteen.
CAN A COMPANY OWNS PROPERTY IN ITS NAME?
A Company can own and enjoy property in its own name, neither the members are not owners of the company’s property and nor the members have insurable interest in the property of the company.