understanding private limited company
A private limited company is one in which the shareholders own the majority of the stock. It is privately owned by the shareholders, and there are no more than 200 shareholders. A liability structure similar to that of a limited company exists in a private limited company, with each shareholder’s liability limited to the number of shares they own. Rather than the value of their shares, the shareholders cannot be held liable. Before its registration, a private limited corporation’s aims are determined. The corporation is overseen by the Ministry of Corporate Affairs (MCA).
Required documents for Private Limited Company Registration :
If director and client are Indian Citizens
- All the Company subscribers shall have an affidavit on a stamp paper to show their readiness to become the company shareholders.
- Office address proof – rental agreement.
- Copies of bills not older than two months.
- Copy of approval for any word or expression(s) which require central government approval if the company's name is proposed.
- When a name proposes a registered mark or is subject to a proposal for registration pending under the Trade Mark Act, it is compulsory to attach a registration certificate or a copy of the mark application to a registration mark.
- Land owner's NOC
If director and client are Foreign Citizens
- Passport
- Address Proof (It can be a driver's license, residence card, bank account, released government ID form with an address)
- Proof of Registered Office (The registration document can be used which indicates the title of premises in the name of the corporation. It can be a driver's license, residence card, bank account, released government ID form with an address)
Procedure for Private Limited Company registration :
Acquire Directors and Subscribers' DSC :
The first and foremost step in the registration of a private limited company is to obtain the MOA Directors and Subscribers' DSC. DSC stands for Certificate of a digital signature. After affixing the DSC to the Authorized Signatory for Company Incorporation, any e-form is filed with the Ministry. It is also required for the Directors' DIN application. Besides, the subscriber's DSC is needed to file MOA and AOA.
Acquire DIN for Directors
DIN is an abbreviation of the term Identification Number for Director. The DIN allocation is carried out by the Ministry to the Individual under this company registration step for acting as a Director in a company. DIN is unique to any individual, such as a PAN card, and is applied and assigned once in a lifetime.
Authorization of name Application
The next step in business registration is to order the organization to reserve its name. The request must be in Type INC-1, where a maximum of 6 names can be applied for by order of choosing. One should note that the names used do not match or almost match any actual company, LLP, or trademark.
If an applicant's name has been accepted it is reserved for 60 days after which it is appropriate to apply for an Incorporation of a Company that does not meet the condition that the name granted by the ministry will be withdrawn.
Application for Certificate of Incorporation
The application for Certificate of Incorporation in SPICe form, together with SPICe_MOA and SPICe_AOA, shall be continued once the name is reserved for the proposed company.
In the event of a concerned state on the portal, the application shall be submitted paying the appropriate stamp fee. After the application has been submitted, an online application form for the company PAN and TAN shall be produced and duly given after MCA has been applied to the DSC.
