A Private Limited Company is a Company registered under Indian Companies Act, 2013 or any previous Companies Act. As the suggested by the term “Limited” in the name itself, the liability of the members i.e. owners is limited to certain extent. Also, there are certain restrictions laid combined with privileges offered.
For the Incorporation of Company, the concerned Ministry i.e. Ministry of Corporate Affairs (MCA) mandates the process of Incorporation by filing all the required forms on their online platform (www.mca.gov.in), which assures the fast and easy process. The Government of India now-a-days promotes the Incorporation of Business in India along with the “Make in India” campaign. After adhering the procedure laid under Act, the establishment and commencement of the Company is easy.
Incorporation of a Private Company takes only 4 steps to be followed in time span of 15 to 18 days. The same can be classified in following main heads:
Acquire DSC for Directors and Subscriber:
The first and foremost step is to acquire the DSC of the Directors and Subscribers to MOA. DSC stands for Digital Signature Certificate. Any e-form is filed with the Ministry after affixing the DSC of the Authorised Signatory for Company Incorporation. Also, it is required for the application of DIN of the directors. Further, DSC of the subscriber is needed to file MOA and AOA.
Obtain DIN for Directors
DIN is abbreviation of the term Director Identification Number. It is a number allotted by the Ministry to the Individual for acting as Director in a company. DIN is unique such as PAN Card to any person and which is applied and allotted once in the lifetime.
Name approval Application
The first step is to make an application for reservation of name for the proposed company. The application is to be made in Form INC-1, where one can apply for maximum 6 names in order of the preference. One shall keep in mind that the names applied are not identical or nearly resembling with any existing Company or LLP or Registered Trademark.
Once the name applied is approved, it is reserved for the applicant for a period of 60 days, in span of which one has to apply for the Incorporation of Company, non-compliance of which leads to withdrawal of the name granted by the Ministry.
Application for Certificate of Incorporation
Once the name is reserved for the proposed company, one shall proceed for making Application of Certificate of Incorporation in SPICe form accompanied with SPICe_MOA and SPICe_AOA.
The application is submitted by paying the requisite Stamp Duty as applicable in case of concerned state on the portal. Once the application is submitted, form for application of PAN and TAN of the company is generated online, which shall be duly submitted after affixing the DSC with MCA.
- Formulation of MOA and AOA
MOA and AOA stands for Memorandum of Association and Articles of Association, respectively. These are two most important documents for any company.
MOA of company states the scope of operations of the company, whereas AOA states how the company will be carrying the operations as per the laid Act. In case of a Private Limited company, the Articles shall mandatory consist the following three clauses in addition to general clauses:
- Limitation on the number of members up to 200.
- Restriction on transfer of shares.
- Prohibition on accepting securities from public.
For submitting this application, one shall collect following documents first:
- Utility Bill and NOC from the owner for the Registered Office address of the Company;
- Rental Agreement with the owner of registered office, if premises is rented;
- Consent to act as a Director of the company in form DIR – 2;
- Affidavit and declaration by first subscriber(s) and director(s) in form INC – 9 (duly franked and notarized);
- Certified True copy of the self-attested Identity proof of the first subscriber(s) and director(s).
After due verification of the application and documents provided, the concerned RoC may grant the Certificate of Incorporation (COI), which is a conclusive proof of existence of the company, wherein the date of Incorporation, Company Identification Number (CIN) and Permanent Account Number (PAN) is mentioned with the sign and seal of the Registrar.
Once, the Certificate of Incorporation is granted, the company may commence the Business Activity as the Incorporation procedure is completed.