A private limited company works as an organization vehicle for the functioning of your business in a corporate structure. The procedure of company registration is given in the companies act, 2013, and which is governed by the Ministry of corporate affairs for regulatory purposes.
The whole procedure has been simplified by an amendment, in the applicable provisions. Here, we will discuss about the modifications and smart guide by which you can understand the process of registering a private limited company in India.
Procedure to register a private limited company
The whole procedure to register company name in India involves two major steps and further divided into four steps. The first one is the approval of name and reservation and the second one is the company incorporation’s application. Following are the steps which would assist you to promulgate a company at a functional level.
First step – name reservation under the RUN
On the MCA portal, you will be able to see web-form RUN (reserve unique name), where you can (applicant) log-in through your credentials to get the desirable name for your company registration. Here, you can give two names in preferential order. In adverse circumstances, the names are not approved by the registrar then you will be given another chance to give another two names for your company. Even that does not get approved then you will have to make a fresh application with government fees payment.
This name reservation application is followed by searching of name availability by experts, to examine whether any LLP/company has already registered with the same trademark/name or not. Additionally, the applied name has to be in line with provisions of name availability.
The name allocated in your application shall be reserved for the period of 20 days beginning from the date of the name approval letter. You should complete the following steps within the given period to register a company with the same name.
There is another way to apply for name registration as well, such as the spice-32 form. You can only process one name via the SPICE form for the name reservation. If your organization’s name is identical to another’s then It would be declined. You would have to repeat the process again from the beginning.
Whereas, in the case of RUN service, you will have to face the test of reservation of your name by paying Rs. 1000 as an application fee. This service is most reliable in case of rejection of name, you would not have to redo all the documental needs.
Second step – obtaining a digital signature certificate
DSC enables the application submitted with MCA, signed digitally by shareholders and directors of the proposed company. DSC should be obtained, from the proposed shareholders and directors of the company to allow submitting of requisite e-forms during the registration procedure. To acquire DSC, documents such as PAN card, PP photo, and address proof of the applicant is needed. The fee to obtain the DSC varies betwixt Rs. 1500-2000 from person to person.
Third step – outlining of AOA, MOA, and other documents
The AOA and MOA are considered as crucial documents for a company as it signifies the scope of operation of the company with defining how functions are to be carried out.
When you want to register your company as a private limited company, the following clauses are included in its AOA with the inclusion of general clauses.
– Not exceeding the numbers of a member beyond 200.
– Transferring of shares is cramped.
– Proscription on accepting securities from the public.
With the inclusion of AOA and MOA, the application for a private limited company should be attached with the following documents.
– Utility bill and NOC from proprietor’s registered office address.
– When premises are a rental, rental agreement with registered office owner.
– Assent to perform acts as director of the company in form DIR-2.
– Declaration by first directors and subscribers in form INC-9.
– Self-attested identity proof’s certified true copy of the first subscribers and directors.
– Self-attested address proof’s certified true copy of the first subscribers and directors.
Fourth step – application for company registration
Once all the needed documents are finalized, the application for registration of a private company can be proceeded by, in e-form SPICE along with SPICE MOA and AOA. This said form is an integrated application for making an application for the company’s incorporation along with allotment of PAN, DIN, and TAN. Also, it is recommended to have the company trademark registration in India.
According to modified provisions, the government fee for registration is relinquished for small and other companies having sanctioned capital up to 15 lakhs. Nonetheless, stamp duty is payable to the concerned state in which the registered office is located.
After the application and documents get verified, the concerned RoC may permit the certificate of incorporation (COI), which is decisive proof of the existence of the company, wherein incorporation date, PAN, and CIN is mentioned with seal and sign of the registrar. Additionally, DIN director identification number to directors is also assigned with registration approval.
Regarding to allocation of TAN and PAN, amendment u/s section 139A of IT act was brought in by financial act, 2018 expressing that numbers displayed in incorporation certificate are substantial proof of allotment and there is no requirement for a physical card.
Few things to keep in mind while registering for a private company
Remember, if you have a company whose sanctioned capital is Rs. 15 lakhs, the government fee is not payable. Nonetheless, the company cannot infuse the capital for 1 year since incorporation to claim the benefit.
On receipt of CoI (certificate of incorporation), the company comes into existence legally, whereby, it’s allowed to perform business in its own name and possess assets. It is requisite for the company to meet the application compliance after incorporation of the company, as directed by the experts.