If you are planning to start business in India, the first & foremost step is to establish the legal presence of your business in India by registering your business in accordance to the applicable provisions of Companies Act, 2013.
As a Startup, you have various alternatives to incorporate your business like Sole Proprietorship, Partnership Firm, One Person Company, Limited Liability Partnership, Private Limited Company, and Public Limited Company. It is mandatory to register your business before starting any business. The first step is to decide the type of business structure you want to choose for your business among different types of business structure available in India.
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Private Limited Company is the most popular type of business structure in India. The Company registration process is online and for registering a private limited company, a minimum of two shareholders and two directors are required.
Advantages of registering a Private Limited Company in India:
You should incorporate your business as a Private Limited Company as there are various benefits of the Private Limited Company incorporation:
Separate legal identity– Private Limited Company is a separate legal entity from its members in the eyes of law and due to this the distinction, the members of the private limited company are responsible only for those actions which are undertaken by them and not by other members.
Limited Liability– Members of the private limited company have limited liability to the extent of their share in the company and personal assets of members cannot be utilized for the payment of the liabilities of the company under any circumstances.
Perpetual succession– Private limited company is formed as a separate corporate entity in the eyes of the law. And, the life of the company does not come to an end even with the death of all members and the life of the business continues.
Easy and free transferability of shares– Members can easily transfer the shares of the private limited company as they have to simply file and sign the share transfer form and give it to the buyer of shares along with share certificates.
Raising the foreign investment– In the private limited company, any NRI or foreigner can make an investment without government approval. Thus, the raising of foreign investment is easier in this form of the company than others.
How to register a Company in India?
If you are worried about how to register a company in India, then you can easily register a Private Limited Company in India online with the help of professionals providing online CS and CA Services through our the online platform of CAONWEB.
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In order to help our clients in online business registration in India, we at CAONWEB provide you a platform in the form of online directory of CA, CS, Advocates & other professionals wherefrom you can choose the best Company Secretaries having expertise in all types of business Registrations in India like private limited company registration, One Person Company Registration, MSME Registration, etc.
Steps for registering a Private Limited Company in India:
For private limited company registration in India, you have to follow easy steps which are explained in detail below:
Step 1: Obtain a Digital Signature Certificate:
The first step is to get the Digital Signature Certificates (DSC) of the person involved. The requirement of DSCs arises for filling of e-forms on the online portal of the Ministry of Corporate Affairs (MCA). Digital Signature Certificate, which is commonly known as DSC is issued by the Certifying Authority in token form and is valid for 1 or 2 years.
The personnel involved in company formation in India are Subscribers and Directors for the proposed company. The Subscriber is the promoter of the company and proposed shareholders. The said shareholders are required to file e-MOA and e-AOA by affixing DSCs whereas proposed directors shall obtain DIN by making an online application in the next step.
List of Documents for Digital Signature Certificate:
· Passport size photograph of the applicant;
· Self-attested Address proof of the applicant; and
· Self-attested PAN card of the applicant.
Step 2: Obtain Director Identification Number
DIN is an identification number for a director and it has to be obtained by anyone who wants to be a director of a company. One DIN is enough to be a director in any a number of companies.
The DIN obtained can also be used for an appointment for any other company and appointment as Designated Partner in the LLP.
List of documents required for Director Identification Number:
· Passport size photograph of the applicant;
· Self-attested Address proof of the applicant; and
· Self-attested PAN card of the applicant.
Step 3: File for Name Approval
There are 2 options for the name approval:
Option 1: Apply for name approval via RUN (Reserve Unique Name) form.
Option 2: Apply for name approval via SPICe form (INC-32).
Step 4: File SPICe Form (INC-32)
Ministry of Company Affairs has introduced SPICe Form (INC-32) and serves the following purposes with the benefit of a single application:
· Application for allotment of DIN
· Reservation of company name
· Incorporation of a new company
· Application for PAN and TAN
The certification of a professional (Chartered Accountant, Company Secretary, Cost Accountant or advocate) is required and he certifies that all the information in the SPICe Form (INC-32) is correct.
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Step 5: e-MoA(INC-33) and e-AoA (INC-34)
e-MoA refers to an electronic Memorandum of Association and e-AoA is electronic Articles of Association and these forms are filed as a linked form with SPICe Form (INC-32) and must be signed by the subscribers to the Memorandum of Association and Articles of Association.
Step 6: PAN and TAN Application
Through SPICe Form (INC-32), you can also apply for the company’s PAN and TAN by using forms 49A for PAN and 49B for TAN. These forms will be auto-generated after the submission of SPICe Form (INC-32). You only have to download it, affix digital signatures and upload both forms on the MCA portal.
Documents required for registering a Private Limited Company in India:
A. Where director and subscriber are Indian Nationals
- An Affidavit on a Stamp Paper, which is to be given by all the subscribers of the Company to state their willingness to become the shareholders of the Company
- Proof of office address – Rental Agreement
- Copies of utility bills which should not be older than two months
- Copy of approval in case the proposed name of the company contains any word(s) or expression(s) that require approval from central government
- If the name you proposed for your company is based on a registered trademark or is a subject matter of an application pending for registration under the Trade Marks Act, then you have to mandatorily attach the trademark registration certificate or trademark application copy
- NOC from the owner of the property
- In the case of subscribers/ Director does not have a DIN, it is mandatory to attach, proof of identity and address proof of the subscribers
B. Where director/subscriber is a foreign National
- Passport
- Address proof which can be driving license, residence card, bank statement, or a form issued by Government
Registered office proof of the company which can be registered document which shows the title of the premises in the name of the company or notarized copy of lease deed or rental agreement
About the new concept of one person company:
One Person Company is a new concept introduced by the Ministry of Corporate Affairs which allows a single entrepreneur to operate a corporate entity with limited liability protection.
OPC Registration makes the entrepreneur a separate legal entity distinguished from the company and have limited liability. And, the company has its own assets and liabilities, the promoter and their property is detached and not personally liable to repay the debts of the company.
You can contact professionals through CAONWEB for all type of business Registrations in India like a private limited company registration, One Person Company Registration, MSME Registration, etc. and other legal & regulatory compliance CS and CA Services in India.
FAQS:
1. What are the types of Companies that can be registered in India?
The types of Companies that can be registered in India are:
One Person Company
Private Limited Company
Public Limited Company
Section 8 Company
2. Can I register a Private Limited Company on home Address?
Yes, you can register your Private Limited Company on your home address.
3. Can I register my family members as directors or members of the company?
Yes, you can register your family member as a director or members of the company and on a later stage, you can change this or transfer the shares.
4. How many days are required to register a Private Limited Company?
Minimum 10-15 days are required to register Private Limited Company. The time required also depends on relevant documents provided by the applicant and speed of approvals from the government.
5. How much does it cost to register a Private Limited Company?
The cost to register Private Limited Company depends on various factors like Number of directors and share capital of the company, form filing fees, and Consultancy fees of Professionals like CA, CS Directory and lawyers.
6. Can an NRI or Foreign National become a director or shareholder in a Private Limited Company in India?
Yes, an NRI or Foreign National can become a director or shareholder in a Private Limited Company in India.
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Chartered Accountant by profession, CA Sanket Agarwal has an experience of above11 years in Cross Border compliance , Import Export , International Taxation & is a passionate content creator.