How to start a Private Limited company in India

Gone are those days when register a private limited company in India was a big hassle altogether. At present, the whole process has become much easier in the digitized era.  Importantly enough, the whole process doesn’t take too much of a time either and a concerned person be aware of the essentials and requirement of the whole process beforehand.  The following steps will definitely be a guide in registering a private limited company in India.

• Applying for Digital Signature form: A Digital Signature establishes or furnishes the identity of the sender or signee electronically while filing documents digitally.The proposed directors of the company to be formed need to apply for digital signature form, which is readily available in the authorized site.

• Obtaining Director Identification Number (DIN) for proposed directors of the company to be formed: This is the first step of the whole process. What will be the number of directors and who are going to be – completely depends on the company to be formed. DIN can be obtained within a couple of days from Ministry of Corporate Affairs.

• Filing the name of the company to the Registrar of Companies (ROC) for approval: The Directors of the proposed company need to submit the name for approval to the ROC. The ROC will only approve it there isn’t any other company or trademark with the same name. Let’s not forget that a minimum of one and a maximum of six proposed names can be submitted to MCA.

• Getting the hard copy details of Memorandum of Association (MOA) and Articles of Association: Here a legal document has to be prepared announcing the liability of the proposed company and defining relationship with the future shareholders. Side by side the terms and conditions of associations also need to be furnished without any delay.

• Payment of stamp duty online: The stamp duty rates vary from state to state at present. With the implementation of GST, it will be same for all the states in India.  At present the whole procedure has become much simply where people can simply pay the requisite stamp duty fees online.

• Filling all incorporation form and documents, Memorandum of Association and the Articles of Association: In this stage, all the requisite documents above mentioned are to be submitted online.  Once the submission is done, the certificate of incorporation has to be obtained. Importantly enough, the whole procedure is done online, in a much more hassle free manner.

• Company registration: In this stage, the official documents are to be submitted to Ministry of Corporate Affairs. Normally the whole process of incorporation takes 5-7 days depending on the processing time.

 As far as the documents necessary for beginning a private limited company in India, a no objection certificate (NOC) is necessary from the landlord of the registered office premises.  As far address proof of the registered office is considered, mobile or telephone bill or cooking gas bill or water or Municipal Tax bill or House Tax bill can be submitted. In all the cases, the bills shouldn’t be preferably too old.  Minimum authorized capital of Rs 1 lakh is needed to form a private company in India and it has no upper limit as such.  For becoming Director of a company, one needs to be over 18 years of age. There is no bar without citizenship or residency and foreign nationals can be Directors in a private limited company. At present a private limited company must have a minimum of two Directors and can have up to a maximum of fifteen Directors.  Let’s not forget the fact that a minimum of two shareholders are required to incorporate a private company. At present, there can 200 shareholders in a private limited company. Even foreign nationals can be shareholders too. Often there is a misconception regarding validity of a registered private limited company in India.  If in any case, annual compliances are not dealt with, a company can become dormant and can be struck off from the register.