Understand the Process of Incorporation of a Private Limited Company
To survive in the world of competition, most of the entrepreneurs are registering their new businesses as a private limited company. This type of business structure is typically adopted by the small as well as medium-sized business owners. This business structure ensures that the personal assets of the business partners are secured and not affected by the losses incurred by the company. You can incorporate your business under the Companies Act of 2013 or earlier. Once all the formalities of the incorporation of a Private Limited Company are completed, you can begin with your business activities. With the advancement of technology these days, the incorporation procedure becomes clear and concise by moving it to the online platform. Both the process is governed by the Ministry of Corporate Affairs (MCA). Utilizing the “make in India” movement can prove to be a smart move from your side. Let’s check out the list of steps to understand the entire registration process of the private limited business.
How Does the Procedure of Incorporation of a Private Limited Company Work?
In India, the whole process of incorporation of a Private Limited Company gets completed in just a matter of 15 – 18 days. It is a fast-moving country where the enrolment of the company is accomplished in four easy steps.
- Receive the DSC: This is the first step for company registration. Since the entire process is online in India, it is logical to get the DSC (Digital Signature Certificate) for all the partners and sponsors of the business. The DSC is a certified electronic signature that can be used for 1 – 2 years. It is used when you submit your e-forms to the MCA. The subscribers are the company stakeholders who will be providing the online Articles of Association form as well as the Memorandum of Association of company form.
- Get the DIN: DIN is the Director Identification Number. All the partners are required to hold their personal Director Identification Number to move forward with the registration process. Each partner needs to apply to the Ministry of Corporate Affairs for attaining their DIN. It is unique and valid for a lifetime just as a PAN card number. After getting the DIN, the partners can get nominated as the director of the company.
- Acceptance of the company name: To decide upon the name for your company needs some research. It is essential to reserve the name of the private limited company so that any other applicant does not take it. Submit the INC – 1e-Form. This form can contain six different names to get any one of them approved by the authority. It is essential to keep in mind that none of the names should match or correspond to any of the closed or existing businesses in India. The registrar tends to provide a few alternative names if none of your proposed names gets approved by the authority. The reserved names are kept on hold under your name do two months. During this time frame, the incorporation of a Private Limited Company needs to get processed.
- Get the incorporation certificate: This is the final step to incorporate the company. Submit the three online forms to start with the incorporation process: SPICe form, SPICe_ Memorandum of Association as well as the SPICe, Articles of Association. Depending on the state, stamp duty will be applied. Now you need to fill the form for TAN and PAN attach the DSC along with the forms.
MOA and AOA: The MOA states the goal of establishing the private limited company along with the type of work it will be carrying out. It sets out the actions of the business. On the other hand, the AOA specifies the procedure to accomplish the objectives of the company. Since these statements are of high importance, it gets composed by consulting the professionals. Attach the DSC of the sponsors to the MOA and AOA. Paper works needed with the application are:
- No Objection Certificate from the possessor of the physical address of the company along with the recent gas, electricity, or phone bills.
- If the company is established in a rented property, then you need to submit the rent contract.
- Fill the DIR – 2 e-form to get the approval to function as the company director.
- Affidavit (written statement confirmed by an oath) as well as a declaration by the first sponsor/s (or subscriber) along with the director/s in INC – 9 e-form.
You will receive the Certificate of Incorporation (COI) by the registrar after the verification and authentication of all the papers submitted during the process. The COI constitute the company PAN and identification number along with the date of incorporation.
Who Can Assist With the Incorporation of a Private Limited Company?
To get any assistance for the incorporation of a Private Limited Company, you can get in touch with the 3E Accounting firm. We are a leading advisor of business solutions to small and large-scale businesses. With the valuable information provided by our crew, you can easily understand the complete process of incorporation. We are efficient in managing the legal and regulatory requirements of our clients. Please email us or call us, we will always be available for assistance for the incorporation of a private limited company.