Ever wondered how to Incorporate a Private Limited Company in India?
Governed by the Ministry of Corporate Affairs (MCA) under the Companies Act of 2013, Private Limited Companies benefit from streamlined registration processes that have simplified doing business in India.
According to Section 3(1) of the 2019 Companies Act, a company can be established as follows: for a public company, a minimum of seven individuals is required, while a private company requires at least two individuals. This guide will be related to the Incorporation of a Private Limited Company in India.
On this page
How to Incorporate a Private Limited Company?
Today’s entrepreneurs favor the Private Limited Company structure the most. To ensure successful incorporation, it’s crucial to follow certain dos and don’ts on setting up a private limited business. Let us look at the steps involved in private limited company registration process in India.
- Step 1: Choose a unique company name
- The first step in incorporating your company is selecting a unique name. Your company name must not be identical or too like any existing company name.
- Additionally, it should not contain any restricted words or expressions unless you have obtained the necessary permissions.
- Step 2: Prepare the required documents
- Several documents are required to incorporate a private limited company. These include:
- Memorandum of Association (MOA): Memorandum of Association is document that outlines the company’s constitution and scope of authority.
- Articles of Association (AOA): An Articles of Association defines the company’s internal management regulations.
- Form INC-32 (SPICe): This is a simplified proforma for incorporating a company electronically.
- Form INC-33 (e-MOA) and Form INC-34 (e-AOA): These electronic forms are used to file the MOA and AOA online.
- Several documents are required to incorporate a private limited company. These include:
- Step 3: Obtain Director Identification Number
- The Director Identification Number (DIN) is mandatory for every director of the company. You can apply for DIN through the MCA portal using Form DIR-3.
- Step 4: Acquire a Digital Signature Certificate
- A Digital Signature Certificate (DSC) is required for filing the forms electronically. The DSC should be obtained from a certified authority recognized by the MCA.
- Step 5: Apply for name approval
- You must apply for name approval through the Reserve Unique Name (RUN) service on the MCA portal. Once the name is approved, it is reserved for 20 days during which you need to complete the incorporation process.
- Step 6: File Incorporation Forms
- After obtaining the DSC and DIN, and getting the name approval, the next step is to file the incorporation forms. These include:
- Form INC-32 (SPICe)
- Form INC-33 (e-MOA)
- Form INC-34 (e-AOA)
- These forms should be submitted along with the necessary documents and the prescribed fees.
- After obtaining the DSC and DIN, and getting the name approval, the next step is to file the incorporation forms. These include:
- Step 7: Pay the registration fees
- The Pvt Ltd company registration fee is calculated based on the authorized capital of the company. Ensure that you pay the required fee while submitting the incorporation forms.
- Step 8: Certificate of Incorporation
- Once all the documents are verified and the fee is paid, the Registrar of Companies (RoC) will issue a Certificate of Incorporation. This Incorporation certificate acts as proof that your company is a legal entity.
- Step 9: Apply for PAN and TAN
- After incorporation, apply for the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for your company through the NSDL website or other authorized agencies.
- Step 10: Open a bank account
- With the Certificate of Incorporation, PAN, and TAN, you can open a corporate bank account in the company’s name. All financial transactions related to the company need to be operated through this account.
- Step 11: Comply with post-incorporation requirements
- Post-incorporation, ensure that you comply with all the statutory requirements, such as:
- Within 30 days of incorporation, the first board meeting should be held.
- Issuing share certificates to the subscribers of the memorandum within 60 days of incorporation.
- Maintaining statutory registers and records.
- Filing the financial statements and annual returns with the RoC.
- Post-incorporation, ensure that you comply with all the statutory requirements, such as:
List of documents required for online company registration in India
In the previous section, it’s clear the steps involved on how to register a company in India. Now, we will look into the documents required for Pvt Ltd company.
- Identity Proof of Directors and Shareholders
- PAN Card: All directors and shareholders must provide their PAN card as proof of identity.
- Passport (for foreign nationals): Mandatory for foreign directors and shareholders.
- Address Proof of Directors and Shareholders
- Aadhaar Card
- Voter ID Card
- Driving License
- Utility Bill or Bank Statement (not older than two months).
- Proof of registered office address
- Rent Agreement: If the office is rented, along with a No Objection Certificate from the landlord.
- Utility Bill: Electricity bill, water bill, or property tax receipt (not older than two months) for the registered office address.
- Property ownership documents: If the office is owned by a director or shareholder.
- Photographs
- All directors and shareholders’ recent passport-sized photographs.
- Digital Signature Certificate
- All directors must have a DSC for e-filing the forms with the MCA.
- Director Identification Number
- Required for all directors. This can be obtained by filing the DIR-3 form with the MCA.
- Memorandum and Articles of Association
- Memorandum of Association
- Articles of Association
- Declaration by Directors and Shareholders
- Form INC-9: Declaration by the first directors and subscribers about not being convicted of any offense in connection with the promotion, formation, etc.
JOIN 24EFILING TELEGRAM CHANNELConclusion
In conclusion, understanding how to Incorporate a Private Limited Company involves several steps, from selecting a unique name to complying with post-incorporation requirements. By following the guidelines and procedures along with ensuring all documents, you can successfully set up a private limited company.
Consulting a professional tax expert like 24eFiling can help streamline the process and incorporate your private limited company. Now 24Efiling is opened for Private Limited Company Registration in India.
FAQs
1. How do I incorporate a private limited company in India?
For incorporating a Pvt Ltd company, first, obtain DSC and DIN for directors, reserve a unique name, draft MoA, and AoA, and submit the incorporation application online through the MCA portal to get the Certificate of Incorporation.
2. What documents are required to incorporate a private limited company?
You need identity and address proof for all directors and shareholders, PAN cards, registered office proof, DSCs, and the MoA and AoA.
3. How long does it take to incorporate a private limited company in India?
It typically takes 10 to 15 working days, depending on the processing time of the Registrar of Companies and the completeness of your application.
4. What are the minimum requirements to incorporate a private limited company?
You need at least two directors (one Indian resident), two shareholders, a registered office address, a unique company name, and the necessary authorized capital.
5. What are the advantages of incorporating a private limited company in India?
Advantages of incorporating a private limited company include limited liability for shareholders, a separate legal entity status, business continuity, increased credibility, and tax benefits.
