If you’re thinking of incorporating a Private Company in Republic of India, there would be several queries that will come back to your mind.
What Exactly is a Private Limited Company?
A Private limited Company is one of the most popular form of a legal entity for doing a business. Private Limited Company is regulated by the Ministry of Corporate Affairs and incorporated under the provisions of The Companies Act, 2013. Private Limited Company are mainly of two type
|COMPANY LIMITED BY SHARES||COMPANY LIMITED BY GUARANTEE|
Key Features of a Private Limited Company are as follows:
1. Unlike Sole Proprietorship and Partnership Firms, it enjoys a status of separate legal entity, where even if the members or the management of the company changes or cease to exist due to any reason whatsoever, the company still continues to stay in existence.
2. A Company can hold the assets of the company in its own name separate from its shareholders.
3. A member has a limited liability in the company, limited to the amount of shares held in the company / liability undertaken. Members of the Company do not hold any personal liability.
4. Creditworthiness of a company is better than any other form of organization.
5. Minimum TWO Directors and TWO members are required for formation of a Private Limited Company.
Best Companies For Private Limited Company Registration:
HOW To Register Private Limited Company ?
A Private Limited Company is registered under the provisions of the Companies Act, 2013 through the procedure prescribed under the Act and Rules and Regulations made there under.
Step 1: Name Approval
The proposed name of the Company is applied by the promoter by paying requisite fee online through RUN(Reserve Unique Name) Web Service. The applied name will be processed by the Central Registration Centre(CRC) and thereafter approval or rejection will be communicated to the applicant.
To avoid rejection the name should be as per the guidelines provided under Companies (Incorporation) Rules, 2014. Once the name is approved the said name will be available for 20 days within which the incorporation process has to be completed. The name of the Private limited company must end with the words “Private Limited”.
Step 2: Obtaining Digital Signatures
Digital Signatures of the all the members and any one Directors (if members and directors are different) needs to be obtained for the incorporation of the Company. For obtaining the Digital Signatures following KYC details are required:
- Identity Proof, i.e., PAN Card (Self Attested)
- Address Proof, i.e., Aadhar Card (Self Attested)
- Valid Phone Number
- Valid E-mail id
Step 3: Documents preparation
Once the name gets approved by the department, the documents are prepared as per the guidelines given under the Act / Rules for the incorporation of the Company.
Step 4: Incorporation
Incorporation of the Company is done through e-form namely Simplified Proforma for Incorporating Company electronically (SPICEe).
Thus, after preparation of documents Form SPICe – INC-32 will be filed along with eMOA (INC-33) and eAOA (INC-34) with the Central Registration Centre(CRC) of Ministry of Corporate Affairs by paying the requisite Stamp duty charges.
Step 5: Certificate of Incorporation
Once the entire process is completed and the concerned department is satisfied by all the compliances, the Certificate of Incorporation will be issued along with the allotment of PAN (Permanent Account Number) and TAN (Tax Deduction Account Number) of the Company, after which the proposed company will now become a separate legal entity.
A Private Limited Company can transact the business in its own name immediately after getting the Certificate of Incorporation.