The private limited company is a company, which has minimum numbers of members i.e. 2, and a maximum number of a member can go up to two hundred. The liability of members of a private limited company is always limited like a partnership firm limited to the extent of their share of capital. The features of private limited companies are almost same as a partnership firms with an extra advantage of limited liability and separate legal entity. The private company allows its members to borrow funds in the name of itself, which is conceivable because of the benefit of separate legal entity feature. Pvt. Ltd company registration in India is not an easy task if you do not have a proper guidance of the procedure and I will tell you today about it in this article.
Procedure of Registration of Private Limited Company in India:
1. Getting a Director Identification Number (DIN) and Digital Signature: First, step in a registration of a company is to get a DIN and digital signature. In simple words, digital signature act as a password, which substantiates the user and DIN, is mandatory for the person who has anticipated himself as a Director. So getting both are mandatory to initiate the incorporation process.
2. Search for the Company Name availability: The Directors will apply for Name Approval with the Registrar of Companies. Up to 6 Names can be provided for approval and then ROC selects one of the names in the observance that there should be no similarity of the same name with the already registered companies and name should not be related to any renowned persons.
3. Conscripting of Memorandum of Association (MOA) & Article of Association (AOA), Filing & Uploading of Incorporation Forms: The next step in private company registration in India is to draft MOA and AOA. A Memorandum of Association (MOA) is a document primed during the process of formation and registration of a company to outline its connection with stakeholders. The various document which is required to file with MOA and AOA are:
- Form INC-7 with the application of incorporation of the company.
- MOA & AOA
- An affidavit from Subscribers.
- Id proof and residence proof of the subscriber is also to be provided with the above documents.
- INC-9 & 10 with an attachment in Notarized stamp paper.
4. Company Address & Office Address: After submitting all the required documents the next thing in the private limited company registration in India is to file Form 22 with the description of the office as well as company address all the branches of the companies are to be mentioned and filed with required documents to the ROC’s office.
5. Information of Directors: DIR-12 has to be a file to ROC, which will contain all the required details about the directors of the companies. Consent letters from the Directors are also to be filed with the ROC, which expresses that Directors are becoming part of the company in a good faith.
6. Issuing of Incorporate Certificate: after submitting all the required documents with the ROC’s office and after inspecting the whole application the ROC will issue an Incorporation certificate, which will give the right to a company to starts its operation. The whole process can take up to 5-7 days after submitting all the documents to Incorporation Certificate.