Starting a company requires more than an innovative business idea and a comprehensive plan. You need to choose the type of business you want to register. Does a sole proprietorship suit your business? Or, should you opt for private limited company registration? Maybe, a limited liability partnership works best for you? Also, after choosing the type of registration, you need to understand the process and documents needed for the same. Today, we are going to talk about private limited company registration. We will also outline the steps that will help you register your business with ease.
What is a Private Limited Company Registration?
Private Limited Company Registration is one of the most popular forms of corporate legal registrations in India. Further, the Ministry of Corporate Affairs governs the company registration in India. This is as per the Companies Act, 2013 and the Companies Incorporation Rules, 2014. Many businesses prefer a Pvt Ltd Company Registration. This is because it ensures limited liability and provides a separate legal entity status to the business. Further, the incorporation of a company is the first step in scaling your business. This is since it paves the way for outside funding. It also enables you to attract top talent by offering stock options. However, one needs to take into account mandatory audits and higher compliance requirements.
Eligibility Criteria for Private Limited Company Registration
- Minimum 2 directors and Maximum 15.
- Minimum of two shareholders.
- Also, the Directors and Shareholders can be the same person.
- However, one Director must be an Indian National being resident in India.
- The minimum capital requirement is NIL.
- DIN of the directors (if available).
- Finally, the subscribers and directors must have a DSC.
Documents and Details Required
Here is a list of the documents and details required for private limited company registration:
Documents for Directors and Subscribers
- PAN card and Aadhar card
- Proof of Identity (Driving License/Voter Id/Passport).
- Proof of Residence (Mobile Bill/Telephone Bill/Electricity Bill/Bank Passbook copy/ Bank Statement) not older than 2 months
- Also, a passport size color photo in jpeg format of Directors.
- DSC (Digital Signature Certificate).
Documents for the proposed Registered Office
- Rent/lease Agreement if taken on rent/lease.
- Security deposit and rent receipt if applicable.
- NOC from the owner of the premises.
- Also, a utility bill in the name of the owner not more than 2 months old.
- DIN No. of the Director(If available).
- Nationality of directors and shareholders.
- Occupation and Educational qualifications of directors and shareholders.
- Email Id and Contact no of directors and shareholders.
- Place of Birth of directors and shareholders.
- Duration of stay at the present address of directors and shareholders (in years and months).
- Description of previous address if the duration of stay at the present address is less than 1 year.
- Four proposed names for the company in order of preference along with its importance.
- Proposed Business activity in Brief (in 2-3 sentences).
- Proposed Authorised and Paid-up Share Capital
- Share capital division between the owners.
Step-by-Step Private Limited Company Registration Process
Here is a quick walkthrough of the private limited company registration process:
- Reserve the name of the company: – Apply for a company name through Spice+ Part A and reserve it on the MCA portal.
- Apply for a Class II Digital Signature for all members and directors: – All members and directors of the company require a Class II Digital Signature. This is to e-sign forms and documents. Apply for one through any certified vendor.
- Prepare the incorporation documents: – You need to submit a list of documents along with your registration application. These include
- NOC for use of premise as RO
- Utility Bill in the name of the owner of the premise
- Proofs of all the Applicants and also the Subscribers
- Consent of Directors in form DIR-2
- Specimen Signature Form of the Authorised Signatory for EPFO/ESIC/Bank Account opening
- Also, Articles and Memorandum of Association along with declarations if required.
Apply for company incorporation on the MCA website:
Once you have completed the above three steps, you can apply for company incorporation on the MCA website. With effect from February 23, 2020, you need to fill form SPICe+. This web form has two parts:
- Part A – Name reservation for new companies.
- Part B – a range of services namely:
- Mandatory issue of PAN
- Mandatory issue of TAN
- DIN allotment
- Mandatory issue of EPFO registration
- Mandatory issue of ESIC registration
- The opening of a bank account for the company (mandatory)
- Mandatory issue of Profession Tax Registration (Maharashtra)
- Also, the allotment of GSTIN (if applied)
Further, you can submit Part-A first to reserve the name and Part-B later. You can submit both of them together as well.
Receive the Certificate of Incorporation – Once your application is approved, you will receive the Certificate of Incorporation.
The new SPICe+ form is a part of the Government of India’s Ease of Doing Business (EODB) initiatives. According to the recent rankings, India stands at the 63rd position among 190 countries. This step of simplifying the private limited company registration process will help improve the score further.
We hope that this article helped you understand the eligibility and document requirements. We also hope that you got a better understanding of the process for private limited company registration. Further, you can drop us a line and our team of experts can help you get your company registered with ease.