Seven Steps for Private Limited Company Registration

Seven Steps for Private Limited Company Registration in Delhi

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Private Limited Company is the most popular and prominent type of corporate legal entity in India. The Ministry of Corporate Affairs, the Companies Act, 2013 and the Companies Incorporation Rules, 2014 regulate private limited company registration. A least two shareholders and two directors are required to register a private limited company. While a corporate legal entity can only be a shareholder, a natural person can be both a shareholder and the director.

Besides, foreign citizens, foreign corporate entities or NRIs may be directors or shareholders with Foreign Direct Investment of a company making it the preferred entity option for international promoters.

Are you thinking of setting up your business in Delhi? Do you want to know the process involved in private limited company registration in Delhi?

CAONWEB can help you with private limited company registration in Delhi.

Pre-requisites for Private Limited Company Registration in Delhi

  • 2 Directors
  • 2 Shareholder
  • Registered Office Address (Residential/ Non-Residential)

Document required for private limited company registration in Delhi

The applicant must mandatorily submit the following documents along with the identity card and address proof:

  1. Memorandum of Association
  2. Article of Association
  3. Copy of PAN Card
  4. Copy of Aadhar Card
  5. Firm Address Proof like Electricity Bill or Telephone Bill or anything similar that has full name and address of the firm in legible language. (not more than two months old)
  6. Rent agreement or Electricity Bill if the business place is taken on rent duly attached with No objection Certificate (NOC) issued by the owner.

Process for Private Limited Company Registration in Delhi

  1. The first step is to apply for Digital Signature Certificate (DSC) and Director Identification Number (DIN)
  2. Then apply for approval of the name with Registrar of Companies (ROC), Delhi
  3. The third step is to apply for Registration in INC-32 forms
  4. The last step is to obtain a Registration Certificate.

Following are the steps involved in registering a private limited company:

Seven Steps for Company Registration

1. Obtain DSC

Since we are taking an online route to register a private limited company, Digital Signature is mandatorily required. It is mandatory for all the subscribers and witnesses in the memorandum and article of association. You can obtain Digital Signature Certificate either online or offline from government recognized certifying agencies. There are two category of DSC available, i.e. Class 2 and Class 3. Under Class 2, your identity will be verified against a pre verified database, whereas under class 3, you need to be present in person before the registering authority.

Related Blog – All you need to know about Company Registration as a startup

2. Run Name Approval

There are two options to get name approval

  1. Incorporate a company via Reserve Unique Name (RUN) form.
  2. Apply for the proposed name through SPICe(INC-32)

Option 1:

In an attempt to ease the registration procedure, RUN web service has been introduced by Ministry of Corporate Affairs. While filling RUN form, be extremely careful as it gives you only one chance for applying and in case of rejection of name (based on valid grounds) there is no second chance available. In this case you have to re-file another RUN form by again paying the prescribed fees.

To apply for a name using RUN web from, the applicant must first create a MCA account. The account is free of cost. After creating and logging into the MCA account, the registrant can choose “Private Limited” as the type of company to be registered. He further needs to provide one name choice and check against the database of MCA to check the availability.

It is important to note that MCA Run System only check for identical company names. However the Company Incorporation Rules, 2014 says a company cannot be registered with an identical name. Hence even if the MCA database shows the availability of name, it does not guarantee approval.

GST Registration | GST Number

Option 2:

However, with effect from March 23, 2018, Ministry has decided to permit two proposed Names and one re-submission (RSUB) while reserving Unique Names for the Companies.

You must think carefully before adopting a name because any name that violates the rules will not be allowed to use. There’s a list of undesirable names that can’t be used.

 If it is identical with or too closely resembles the following, a suggested name will be considered as undesirable.

  1. Existing company names and LLPs or names approved by the Company Registrar and LLPs.
  2. A registered trademark or trademark for which others have applied for registration and used it or owned it.
  3. Names are given under and in violation of the Emblems and Names Act, 1950.
  4. Foul words or phrases. Words or expressions used as a derogatory term and offensive to a group of people.
  5. Names with “British India” words.
Fssai Registration | Food Licence

3. Obtain Director Identification Number for Incorporation

All individuals who are proposed to be the director of the company should have a valid Director Identification Number. The person should apply for DIN only through the SPICE from. All the details should be filled in the SPICE form along with their PAN or Passport details. On incorporation of the company, DIN will be allocated to the person who has duly applied for DIN.

If a person already has a DIN and incorporating a new company, SPICE form must still be used and DIN can be entered wherever applicable.

4. Selecting Your Business Activity

Next, you should choose the operation your Private Limited Company will engage in. You can decide from any of the alternatives that you have been given. And if you cannot find the correct option for your operations, you can select the’ other’ option. It is requested to appoint a professional so that he/she can help you with drafting memorandum and article of association.

5. Form SPICe (INC-32)

Ministry of Corporate Affairs has introduced Form SPICe (INC-32) to simply the process for incorporating and registering a company online. Prior to the introduction of SPICe form, a company is required to file several documents like DIR-3, DIR-12, INC-1, INC-7, INC-22 for different registration requirements. Now all these forms have been merged together in a simplified way.

A professional’s digital signature is mandated to file the INC-32 form. The professional must certify the correctness of all the information provided in the form. The professional can be a Chartered Accountant, Company Secretary, Cost Accountant or advocate.

6. e-MoA(INC-33) and e-AoA (INC-34)

The intention behind introducing e-MoA and e-AoA is to simply the company registration process in India. e-MoA and e-AoA stands for electronic Memorandum of Association and electronic Articles of Association respectively.

The forms need to be filed online on MCA portal and they are linked with SPICe (INC-32). Both of these forms must be mandatorily filed by the subscribers of the Memorandum and Article of associations.

7. PAN and TAN Application

 You can apply for the PAN and TAN of the company through the single SPICe form by using forms 49A for PAN and 49B for TAN. After submitting the SPICe form, the system will auto-generate PAN and TAN form. All you need to do is download it, attach electronic signatures and upload both forms to the MCA portal. 

If all the information in the form is properly filled in along with the necessary documents, MCA will approve the registration and a CIN (Corporate Identity Number) will be given. This CIN can also be tracked on the MCA portal online.

Ministry of Corporate Affairs has significantly made the registration process a lot more simple and easier in an effort to spur new start-ups.

Frequently Asked Questions

1. What is the fee for Incorporation?

The MCA has announced zero fees for incorporation up to 10 lakh of an authorised capital in an attempt to simplify the company incorporation process and encourage new start-ups. Hence, Businesspeople would be able to save a thousand rupees as an incorporation fee. Notwithstanding the announcement of zero fees for the SPICE form, eMOA and eAOA–stamp duties would still be valid for incorporation as before depending on the state of incorporation.

Bookkeeping | Accounting & Auditing

2. What are the changes made in the registration process in 2017 and 2018?

By reducing the forms for name approval, DIN application and incorporation, the MCA has accomplished substantial process decrease while enhancing the ease of using SPICe form.

A significant drawback in using the SPICe form earlier was that Entrepreneurs or Professionals were unable to acquire previous approval of the name. In the event of refusal of name while using SPICe Form, they were compelled to redo incorporation paperwork. But now, MCA has streamlined the name approval process and made it optional by implementing a web-based method for name authorization called RUN.

3. Can a proposed director of a new company apply for DIN through Form DIR-3?

As per the company registration process 2018, DIR-3 form can only be used for adding a director by existing companies. Hence, due care must be taken by the professionals to ensure that DIN, through DIN-3 is not obtained for a proposed director of a new company.

4. What are the documents required for filing SPICe (INC-32)

The following documents are required for filing SPICe (INC-32):

  • If the Director or Subscriber is an Indian National
  • PAN Card
  • Address Proof:  It can be Passport, Voter ID Card (Election Card), AADHAR Card, Electricity Bill, Telephone Bill, Ration Card or Driving License.
  • Residential Proof: It can be Bank Statement, Electricity Bill, Telephone Bill or Mobile Bill.
  • If the Director or Subscriber is a Foreign National
  • Passport
  • Address Proof: It can be Driving License, Residence Card, Bank Statement or Government issued form of identity containing address.
  • Residential Proof: It can be Bank Statement, Electricity Bill, Telephone Bill or Mobile Bill.

5. What is the time required to register a company?

Since nowadays a company registration has become a fast track process, it takes lesser time to register a company online as compared with the old process.

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ALL ABOUT COMPANY REGISTRATION IN INDIA

ALL ABOUT COMPANY REGISTRATION IN INDIA

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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. 

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.

Company Registration

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.

Related Blog – All you need to know about Company Registration as a startup

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.

Related Blog->HOW TO REGISTER COMPANY IN DELHI?

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.

GST Registration

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.


Company and Firms Registration in India

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Business registration in India is very important when we think of starting a business in India. In today’s era, we have the facility of registering our business online. Online business registration involves less cost, less time and efforts and we don’t have to visit a consultant’s office every time as nowadays we can get these services online within a reasonable price.

For business registration in India, we first have to decide the type of business structure we want to choose among different types of business structure available in India.

Company registration in India

Online Firm Registration Process in India

Sole Proprietorship Firm Registration:

This structure is most suitable when your business is small and there is only one owner. It is the one which involves the least cost and has very fewer compliance.

Online firm registration process in India:

  • Open a current bank account
  • For opening a current bank account, we can either opt for MSME registration or have GST registration.

Partnership Firm Registration:

This structure is most suitable when there are two more persons come together to form a business as partners and divide the profits thereof in an agreed ratio. It is easy to form and have fewer compliances as compared to a company.

Related Blog – All you need to know about Company Registration as a startup

Online firm registration process in India:

  • Form a partnership deed on stamp paper with notarized  
  • Obtain PAN and TAN
  • Open a current bank account
  • For opening a current bank account, we can either opt for MSME registration or have GST registration.
  • As per the Partnership Act, 1932 registration of partnership firms is optional and is entirely depends on partners whether they want to register a partnership firm or not.

Company Registration Process in India

GST Registration

Company Private Company Registration Process in India:

As per Companies Act, 2013 private limited company should be registered with Ministry of Corporate Affairs. There should be at least 2 members who can also act as directors of the company. The private limited company registration process on India is as follows:

  • Apply for DSC
  • Apply for DIN in the form DIR-3
  • Register for company name in India via e-form RUN
  • Filing forms SPICe-INC-32 Form, e-MOA(INC-33) and e-AOA(INC-34) with MCA along with the required documents
  • Issue of Certificate of Incorporation
  • Open a current bank account

One Person Company Registration Process in India:

As per Companies Act, 2013 One Person Company should be registered with Ministry of Corporate Affairs. There are only 1 director and member. The online company registration process on India is as follows:

Limited Liability Partnership (LLP) Registration Process:

As per Companies Act, 2013 One Person Company should be registered with Ministry of Corporate Affairs. It has the benefits of both partnership firm and company into a single form of organization. The online firm registration process in India for LLP is as follows:

  • Apply for DSC
  • Apply for DIN in the form DIR-3
  • Register for the company name in India via e-form LLP-RUN
  • Incorporation Application in the form FiLLip
  • File LLP Agreement in form 3
  • Open a current bank account

The company registration process or online firm registration process in India is somewhat complex and involves tedious documentation part, along with also requires professional certification via chartered accountant, company secretary, cost and management accountant. You can search such said professionals on online directory of CAONWEB near you who can help you in online firm registration process in India or company registration process or for register company name in India or any other service related to licensing, registration or taxation.

Also Read these topic:-

How can a Non Resident person start a company in India?

How To Register Pvt Ltd Company in India?

One-Person-Company-Registration

One Person Company Registration

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One Person Company Registration

This structure is most suitable if there is a single promoter or founder. It is important to understand that only a natural person can form OPC and not any other form unlike in a Private limited company structure. You need one nominee also to form an OPC. You also cannot incorporate more than one OPC or be the nominee of more than one opc. There is a threshold limit to be an OPC, which is paid up capital of 50 Lakhs an average annual turnover of 2 crores. To form an OPC, the detail such as company name, the objective of business activity, identity and address proof of the promoter, address proof of the registered office of the OPC are required.

1. To whom is one person company most suitable?

One person company is most suitable if you are a single promoter/ single entrepreneur. It is a form of legal entity and this gives your company benefits such as perpetual existence and easy ownership transferability. A single person has the facility to have 100% shareholding in case of one Person Company.

2. Is only one person required to incorporate OPC?

The minimum person required to incorporate OPC is two. One Director and the second person as a nominee director.

GST Registration

3. How is it different from the Private limited company?

  • For a pvt limited company minimum of two directors is required unlike in OPC where a single director can hold 100% shares.
  •  The cost of incorporation is comparatively lower in the case of OPC.
  • Mostly the compliances are all similar for both OPC and for the private limited company.
  • The only exclusive feature which makes OPC different is that a single person has the wholesome ownership in OPC
Apeda Registration

4. Are there any limitations or drawbacks of OPC?

  •  OPC is best for single entrepreneurs, However, there are some limitations such as
  • NRI or foreigners cannot be part of OPC. Unlike in a Private limited company which allows Foreigner to become director of the private limited company.
  •  OPC must be mandatorily converted into the private limited company if its annual turnover exceeds Rs. 2 crores or the paid-up capital of one Person Company exceeds 50Lakhs.
  •  Also in certain licenses, only Pvt limited are allowed to take.

Related Blog – All you need to know about Company Registration as a startup

5. What are the compliance requirement of OPC?

Annual filing of returns just like in case of PVT ltd company.