From local businesses to corporates, private limited company is one of the most preferred business entities. The financial liabilities of the shareholders are limited to their shares. A private limited company will continue to exist even in case of death or departure of a member.
A private limited company can be incorporated with a minimum of two and a maximum of two hundred members. It is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014.
If anyone wants to register their company as a private limited company, they are required to follow the rules stipulated by the Companies Act, 2013.
Basic requirements for private limited company registration
Documents required (with self-attestation)
By Directors & Shareholders
- Latest passport size photo.
- Copy of Pan card of Directors
- Copy of Aadhaar Card
- Copy of Voter Identity card/ driving licence/passport of the directors
- In case of NRI or foreign national, passport copy has to be notarized at the Indian Embassy of the particular country.
- Notarized utility bill of the particular country where the NRI or foreign national resides.
- Latest bank statement of not less than two months old.
For Office Address proof
- Registered office proof of the company stating if the property is rented/ leased.
- Copy of the rental agreement or lease agreement.
- Copy of electricity/water bill (business place)
- In case of own property, copy of sale deed and electricity bill is sufficient
- Copy of no objection certificate from the owner of the property
Procedure for incorporating a private limited company
Obtaining Digital Signature Certificate (DSC)
Digital Signature Certificate or DSC is nothing but a mathematical process used to verify the authenticity of digital message, certificates and documents. It is a USB drive that has the encrypted signature of a person so that the originality of the signature can be verified.
Obtaining Digital Identification Number (DIN)
Digital Identification Number or DIN is a unique number given to the existing or potential director of a company. DIN is mandatory for all directors. This number is unique and is used to identify a person and his role as a director in the past companies and the present company as well.
Choosing an acceptable name as per the Companies Act, 2013 is one of the most important steps during the formation of a private limited company. Name reservations will continue to be filed in the existing e form SPICe+ along with related linked forms as applicable. If name reservations are marked under resubmission, they shall be resubmitted.
The name has to be acceptable and it has three important parts
The name has to be acceptable and unique. The name that is chosen needs to fulfil the definition given by the Companies Act, 2013. The name chosen cannot be similar to that of an existing company or LLP or trademark in the same industry type.
The name should include an object part where the nature of the business entity should be defined.
Constitution part defines the type of business entity that is defined in the name. It is mandatory for all the private companies to use the word private limited after its name.
MOA and AOA must be drafted
Memorandum of Association(MOA) is the deed drafted with related to the provisions of Companies Act 2013 of the company. It describes the scope of operations of the company by providing the main objects and activities of the company.
Articles of Association (AOA) provides the manner the operations shall be carried on. Also it outlines the rules & regulations along with the duties and the rights of the company.
SPICe+ would be an integrated Web form offering multiple services viz. name reservation, incorporation, DIN allotment, mandatory issue of PAN, TAN, EPFO, ESIC, Profession Tax (Maharashtra) and Opening of Bank Account. It will also facilitate allotment of GSTIN wherever so applied for by the Stakeholders.
What will you get after the incorporation process?
- Incorporation certificate
- MOA (Memorandum of Association)
- AOA (Articles of Association)
- Spice+ form
- PAN of the company
- TAN of the company
A private limited company is the most preferred type of business among corporates. It has its own assets, liabilities, profits and losses. The directors and shareholders are protected from their financial liabilities.
Aavana is your one-stop source for the incorporation of a private limited company. Our staff will take you through the process and also take care of your accounting and tax regulatory services as well. Get in touch with us today!