The business owners of this kind of companies privately own all the shares of the organization. The shareholders might hire directors, who manage the firm or operate themselves. When a private limited company is formed, the personal assets can be protected. Besides, the firm gains access to a greater range of resources, besides gaining credibility and financial assistance.
• The shareholders and directors may be the same individual
• The company should have at least two directors and shareholders
• One of these directors need to be an Indian Resident
• The company should have INR One Lac (100,000) as the Minimum Authorized Share Capital
• Provide the Director Identification Number (DIN) for all the directors
• Digital Signature Certificate for one witness and 2 promoters
1. Copy of PAN CARD of the proposed directors
2. Directors’ phone numbers
3. Directors’ email IDs
4. Copy of address proof
5. Utility bill like gas, electricity, telephone or mobile, which should not be older than two months
6. Directors’ occupations
7. Photo (passport size) of the proposed promoters and directors in JPG format
8. Based on preference, you need to provide options for the company name
9. Promoters’ and directors’ residence proof address like mobile bill, bank statement, electricity bill or telephone bill (recorded within two months)
10. Registered proof of office address like title deed or rent agreement
You can register a private limited company in the following process:
Stage 1: Identifying the directors and shareholders
You would need at least two directors and two shareholders to register a private company. Among them, one of the members needs to be an Indian resident at the minimum. The shareholders may consist of companies, individuals or LLPs. However, only individuals may become company directors. A director may not necessarily be a shareholder of the respective organization. Likewise, a shareholder may not be a director in the company.
Members or shareholders are the individuals holding shares in a particular organization. The management of the company is entrusted on the directors. They look after the legal adherence under different norms. In general, shareholders appoint the directors. According to the laws of the Indian companies, only a single individual can hold the post of the director.
Stage 2: Obtaining a DIN (Director Identification Number) for each director
The director who has been suggested should be having a Director Identification Number. The Ministry of Corporate Affairs allots this number. One can obtain this DIN through an online application filing, along with a copy of address proof and identity. For Indian nationals who apply for this number, it is essential to have a PAN Card. For foreign nationals, simply the passport would serve the purpose. You would also need the Digital Signature Certificate to obtain the DIN.
Stage 3: Obtaining the directors’ DSC (Digital Signature Certificate)
It is necessary to go to www.mca.gov.in and make an online submission of the documents to the ROC during registration. The Digital Signature Certificate, that the Digital Signature Certificate issues, is used to authenticate these forms. Besides, the directors should possess the DSC in order to validate the documents, that they submit to the ROC.
Stage 4: Identifying the authorized capital and location of the company
You should also have a valid address of the registered office of the company. However, this might not necessarily be a commercial location. You can use one of the promoters’ residential address, or any other address that can be identified for this purpose. The correspondence connected to the respective company will be dispatched to the registered address by the ROC. The location of your office would influence the ROC’s jurisdiction.
As a private limited company, you should not be having any minimum limit of paid-up capital. Therefore, you can use any amount as the authorized capital. The fee for registering a company depends on the capital authorized.
Stage 5: Applying the company’s name
At the end of the name of the company, the words ‘Private Limited’ should be there. Before you proceed with the process of incorporation, you need to file an application, through which the name of the company gets approved by the ROC.You should come up with multiple names in the application for the company, arranging them in a preferential order. Follow the Company Name Guidelines while applying with the company name. In INC-1, the application with company name has to be filed to the Ministry of Corporate Affairs of the Indian government. In the process, they will check whether or not the proposed name is available to register your company.
When you obtain this approval, this name will remain in reserve for a span of 60 days, within which you need to execute and file the documents of company registration.
Stage 6: Executing the documents for company registration
The promoters need to execute documents like AOA and MOA (for company incorporation) in the prescribed format when the name of the company gets approved.
The subscribers have to execute the AOA and MOA. They need to furnish details like father’s name, own name, occupation, residential address and how many shares they decide to buy, writing the details in their own handwriting. Next, they need to sign this document. It is also necessary to attach a witness’s signature, who knows the people subscribing.
Stage 7: Submitting the registration documents of the company to the ROC
After the execution of the AOA and MOA, you need to submit a copy of the same for company registration to the ROC of the state under concern. You need not fill the AOA and MOA that were executed originally with the ROC. For reference in future, the promoters should reserve it. One also need to fill the details of registered office and director with the ROC, besides the incorporation documents.
Stage 8: Certificate of incorporation and company registration
After verifying the AOA, MOA and other details, the company will be registered by the ROC and issue the COI (Certificate of Incorporation). The ROC will also allocate a CIN (Corporate Identification Number) to the company which has been registered. However, the ROC’s office will not issue any physical certificate. For a private company, it is possible to start operating its business after getting the Certificate of Commencement of Business and COI