Advantages of Private Limited Company

Benefits and Advantages of Private Limited Company

A Private Limited Company is the most common form to carry on a business as an entity intending to make a profit and enjoy the benefits offered by it, particularly limited liability. It is a voluntary association of at least 2 and not more than two hundred members/ shareholders, whose liability is limited according to the shares held by them. The shares of a Private Limited Company cannot be traded on public exchanges and are not issued through an IPO, hence the shares of a Private Limited Company are held privately. The Companies Act, 2013 has granted a lot of privileges and exemptions to private companies in order to facilitate ease of doing business in India.

ADVANTAGES OF COMPANY REGISTRATION:

1. Easy to Incorporate: The incorporation of Private Limited Company earlier used to involve huge time and cost for a businessman. But now the Ministry of Corporate affairs has come out with web form SPICE+ for Company Incorporation. The Web form provides various registration through one application i.e. PAN Number, TAN Number, ESI Registration, EPF Registration etc.

2. Limited Liability: A Private limited Company provides Limited Liability to all its shareholder’s/ member’s, unlike Proprietorship or Partnership where the liability of its owners is unlimited. In case of Company Registration the liability of the shareholders/ members are limited to the amount that is unpaid on the shares issued to them. Their liability is limited to the extent of the value of shares taken up by them.

Related Blog: COMPANIES FRESH START SCHEME, 2020

3. Minimum Capital Requirement: There is no such minimum capital requirement of incorporating a Company.

4. Separate Legal Entity: A Company is treated as an artificial person. Therefore, in the eyes of law it is a separate legal entity different from the Directors/persons acting on behalf of the Company. Being one of the major benefits for registering a private limited company as the members are not personally liable for the Company’s acts.

5. Perpetual Succession: As a Company is a separate legal entity, thus the cessation/ death of director/ or members does not affect the life of the Private Limited Company. Any member may come or go but the company goes on forever.

6. Foreign Direct Investment: Every business requires funds for its survival and growth. Therefore, It is easier to take investment through a Private limited Company.

7. Ease of Decision: As the control of the business remains in the hands of the owners of the Company. Hence, the decision can be taken and executed quickly.

8. Power to sue and be sued: Being a separate legal entity, a private limited company can file a suit against the third party in its own name and the third party may also file suit against it.

Related Blog: SPICE PLUS COMPANY PROCEDURES

9. Transfer of shares: The shares of a private limited company are free transferable subject to a condition as may be imposed by the board of directors. Hence it becomes easy to control the transfer/ dilution of interest and avoid outside interruption in holding of shares.

Frequently Asked Questions:

How can one register a Private Limited Company in India?

 To register a Company in India click on the below link: https://www.caonweb.com/company-registration.php and connect with an expert.

What are the eligibility criteria to be a shareholder or director for a Private Limited Company?

There is no such specific qualification required to be a shareholder or Director except that the person should be above the age of 18 years and of sound mind. 

Which documents are required for company registration?

  1. ID Proof ( PAN Card of both the directors)
  2. Address Proof 1( Adhaar/Voter ID/Passport/Driving License of both the directors)
  3. Address Proof 2( Electricity Bill/Telephone Bill/Bank Statement of both the directors)
  4. Photograph of both the directors
  5. Electricity Bill and Rent Agreement of premises to be kept as the registered office address

Which forms need to be filed for Private Limited Company Registration?

One needs to file the web form SPICE+ along with the required linked forms.

What is DIN?

DIN is the Director Identification Number which is allotted to the directors when the Company is incorporated.

How much Capital is needed for a Private Limited Company Registration?

There is no such minimum capital requirement. For more information regarding private limited Company visit our page- https://blog.caonweb.com/ (Search & find related topic)

Company Registration

COMPANIES FRESH START SCHEME, 2020 (CFSS-2020)

The Central Government in the exercise of powers have introduced the COMPANIES FRESH START SCHEME, 2020 (CFSS-2020), It shall facilitate the companies registered in India to make a fresh start. This scheme aims at providing a one-time opportunity to enable defaulting companies to complete their pending compliances by filing necessary documents in the Ministry of Corporate Affairs including annual filings forms, other returns, documents and statements without paying additional fees on an account of delay and to avail immunity from the launching of prosecution or proceedings for imposing a penalty on account of delay associated with certain filings. In other words, defaulting companies shall require to pay only normal fees for filing of the above-mentioned delayed documents during the currency of CFSS-2020.

  •  APPLICABILITY:

This Scheme shall be applicable to any “Defaulting Company”, Defaulting Company here  means any company which made a default in filing of any of the documents, statement, returns, etc. including annual statutory documents on the MCA-21 registry on due time and under this scheme is permitted to file all belated documents which were due for filing without any Additional Fees except for two documents and out of which, some permitted documents are as follows:

  •  Annual Forms:
  •  Event-based Forms:
    • INC-22A (Active Company Tagging Identities and Verification)
    •  INC-20A (Declaration for the commencement of business)
    • PAS-3 (return of Allotment)
    •  ADT-1 (Appointment of Auditor)
    •  MGT-14 (Filing of Resolutions and agreements to the Registrar)
    • DIR-12 (Particulars of appointment of Directors and the key managerial personnel and the changes among them)
  • Two Exceptions which is out of the purview of this Scheme:
    •   Increase in Authorised Share Capital (SH-7)
    •  Charger related documents (CHG-1, CHG-4, CHG-8, and CHG-9)
  • SCHEME VALIDITY: The Scheme shall come into force on 01st April 2020 and shall remain in form till 30th September 2020.

Read More Blogs: Types of Business Entities in India

  • BENEFITS OF SCHEME
    • One-time opportunity to enable defaulting companies to complete their pending compliances regarding: annual filings forms, other returns, documents and statements without paying any additional fees. 
    • Immunity Certificate to save from launching of prosecution or proceedings for imposing a penalty on account of delay associated with such filings.
  •  PROCEDURE TO AVAIL BENEFITS AND IMMUNITY IN RESPECT OF DOCUMENT(S) FILED UNDER THE SCHEME: 
    • STEP 1. File all pending forms, documents, returns, statements, etc. as mentioned above with the MCA-21 registry during the currency of the Scheme without paying any additional fees.
    • STEP 2. File Form CFSS-2020 for seeking immunity in respect of belated documents filed under the scheme, after the closure of scheme and after the documents are taken on file or on record or approved by the designated authority as the case may be but not after the expiry of six months from the date of closure of the scheme. 
    • STEP 3. An immunity certificate in respect of documents filed under this scheme shall be issued by the designated authority. 
  • SCHEME FOR INACTIVE COMPANIES
    The defaulting inactive companies, while filing due documents under CFSS-2020 can, simultaneously, either:
    (a) Apply to get themselves declared as Dormant Company under section 455 of the Companies Act, 2013 by filing e-form MSC-1 at a normal fee on the said form; or
    (b) Apply for striking off the name of the company by filing e-form STK-2 by paying the fee payable on form STK-2. 

Read Other Blogs: New procedure of company incorporation

  • NON APPLICABILITY OF CFSS SCHEME:
    •  To Vanishing Companies.
    •   Companies against which action for final notice for striking off the name u/s 248 of the act have already been initiated by the Designated Authority.
    • Companies that have already filed STK-2 for strike off of Company with ROC.
    • Companies that have amalgamated.
    • Companies that have already filed an application for obtaining Dormant Status.
    • A company having any appeal which is pending before the Court of law.
    • A company having management disputes and pending before any Court of law or Tribunal.
    • Companies which are convicted by any Court in any matter and no appeal has been preferred against such orders of the Court before this Scheme has come into force
    •  Companies upon which an order passed for imposing penalty by an adjudicating authority under the Act and no appeal has been preferred against such orders of the Adjudicating Authority before this Scheme has come into force.

PROTIP: In such challenging times the Ministry has given all Companies an additional chance to make their default good. Therefore it is advisable to take full advantage of the scheme and strive towards becoming compliant.

Business Entities in India

Types of Business Entities in India

  1. Proprietorship Firm Registration
  2. Partnership Firm Registration
  3. Limited Liability Partnership Registration
  4. One Person Company Registration
  5. Private limited company Registration

Lets understand the basics and important factors on all above kind of Business registration:

PROPRIETORSHIP FIRM REGISTRATION IN DELHI

Proprietorship firm registration is the simplest form of Business registration where the responsibility is only on one person for running the business. Proprietorship firms are very cost effective and require less compliances. The documents required for this are identity and the address proof of the owner. It can be done either by getting MSME registration or GST Registration within 3-5 working days.

Bookkeeping and Accounting

PARTNERSHIP FIRM REGISTRATION IN DELHI

Partnership firm registration is a specific kind of relationship formed by an agreement between two or more individuals in which each partner has to invest to carry on a business. It is the most preferable structure because there is not much compliance or high cost involved. Documents required for partnership registration are photographs, identity and address proof of the partners. They are governed by the Indian Partnership Act, 1932 and it takes around 10-12 working days to register a partnership.

LIMITED LIABILITY PARTNERSHIP REGISTRATION IN DELHI

LLPs are governed by the Limited Liability Partnership Act, 2008, to form a LLP atleast two individualsare equied who shall be the designated partners. In Limited Liability Partnership the liability of each partner is limited to an agreed amount mention in the formation documentation whereas in partnership firm partners are liable for unlimited amount of liability. Limited Liability Partnership requires less funding and compliances as compared to private limited company.

Related Blog: INCORPORATING A COMPANY IN INDIA

Documents required for LLP registration are:

Photograph, identity and address proof of all the partners

Address proof of the proposed registered office.

The whole process of Limited Liability Partnership registration takes around 25-30 working days. The compliances once limited liability registration is completed are filing of Annual Return of LLP in Form 11 and filing financial statements in Form 8.

ONE PERSON COMPANY REGISTRATION IN DELHI

One Person Company is a new concept in India if you want to start up your own business with no intervention of any third party then it’s the best way of company registration, the first and the foremost thing to understand before registration of one person company is that only a natural person who is an Indian citizen and resident in India can form OPC or can become a nominee.

To form an OPC the detail such as company name, objective of business activity, identity and address proof of the Director and the nominee, address proof of the registered office of the OPC are required.

After the incorporation of OPC, it has to comply with Commencement of business, Auditor appointment, Filing of annual return and financial statement with the ROC before the due date.

PRIVATE LIMITED COMPANY REGISTRATION IN DELHI

 Private Limited company registration is the most common structure of company registration. A Private Limited Company enjoys the separate entity status and requires minimum two shareholders/ directors to incorporate a Company in India. The Private limited Company is registered with the Ministry of Corporate Affairs and is governed by the provisions of Companies Act, 2013.

Related Blog : ALL ABOUT COMPANY REGISTRATION IN INDIA

The first and the most important step of private limited company registration is to decide a name and get the same from the authority. You can reserved the name before incorporation by filing Reserve Unique Name (RUN) Form. Once the name is approved the rest all formalities are to be filed within 20 days.

Documents Required-

1) ID Proof ( PAN Card)

2) Address Proof 1( Aadhaar/Voter ID/Passport/Driving License)

3) Address Proof 2( Electricity Bill/Telephone Bill/Bank Statement)

4) Photograph

5) Electricity Bill and Rent Agreement of premises

The whole incorporation process takes around 15-20 working days.

Related Blog: Msme/SSI Registration

FAQ

QUESTION: CAN A NRI/FOREIGN NATIONAL BE A DIRECTOR IN PRIVATE LIMITED COMPANY?

Answer: Yes, an NRI or Foreign National can also be a shareholder or director in a private limited company of India.

QUESTION: WHAT IS THE CERTIFICATE OF INCORPORATION?

Answer: The certificate of incorporation is the document issued to confirm that MCA has incorporated your company. It contains the Date of Incorporation, Name of the company, Corporate Identification Number (CIN), PAN number and the TAN number allotted to the Company.

QUESTION: CAN MINOR BECOME A MEMBER?

Answer: No, only an individual above the age of 18 years can become a member.

INCORPORATING A COMPANY IN INDIA

INCORPORATING A COMPANY IN INDIA

There have been major changes in the process of Company registration with the Ease of doing Business initiative which has simplified the process of incorporating a Company in India, Company Registration being a recommended form of business structure as it suits everyone’s needs. While registering a private limited Company minimum two people/ promoters are required for its formation where both can be director and shareholder. The registration of Company is done under the Ministry of Corporate Affairs, Company being a separate legal entity it provides limited liability to its shareholders. The various types of companies that can be incorporated in India include the following:

Related Blog: Online Business Registration Anywhere in India

Documents Required for Company Incorporation in India:

PAN Card of the promoters

Passport size photograph of both the promoters

Aadhaar Card/ voter id of the promoters

Bank Statement/Utility bill of both the promoters

Lease Deed, for the registered place of business if it not owned by the promoters

Electricity bill/ Water bill (registered place of business)

No Objection Certificate

Related Blog: SPICE PLUS COMPANY PROCEDURES

PROCEDURE FOR INCORPORATING A COMPANY IN INDIA:

Recently the Ministry of Corporate Affairs under the Ease of doing business in India initiative has launched a web form SPICE+ (SPICE plus) which aims at simplifying the company registration process. As per the new Spice+ form the form is divided into two parts:

PART A: Name Reservation, The proposed Company can file the name application separately for reserving the name for 20 days and afterwards file for company registration or can fill part A along with the part B and file for Company registration.

PART B: Company Registration, it contains all the required details for registering the Company i.e. details of directors, shareholders, registered office address of the Company, Authorised and paid up capital and other requisite details.

Digital Signature Certificates: The directors/ subscribers to the MOA & AOA need to obtain digital certificates from the government authorised agency. These signatures are required while filing forms with the ROC, GST filing, and ITR filings and are regarded as the physical signatures of the Directors and shareholders.

Related Blog:  HOW TO REGISTER A COMPANY IN DUBAI

Once the Web Form is filled one needs to attach the required documents and upload the same with the digitally signed linked forms.

Memorandum of Association

Article of Association

AGILE PRO

Declaration of First Subscribers and Directors

 Once the forms are uploaded with the Ministry and the requisite fee paid, the Ministry shall provide the following registrations at the time of approval:

  • Director Identification Number (DIN)
  • Company Incorporation Certificate
  • PAN Number
  • TAN Number
  • GSTIN Number
  • Bank Account Number
  • EPFO Registration
  • ESIC Registration
  • Professional Tax (only for the state of Maharashtra)

Time Taken: Company registration process takes around 7-10 working days rest depends on the approval by the Ministry of Corporate Affairs.

Professional Guidance: The incorporation process is not an easy task it requires professional interface. From selecting the appropriate name in accordance with the Company (Incorporation) Rules, 2014 to drafting of Memorandum, Articles of Association, with the drafting of incorporation documents, along with certification of the forms professional guidance is required at every step of Company registration process. One can therefore take help from the CA services providers.

Related Blog : ALL ABOUT COMPANY REGISTRATION IN INDIA

FAQ:

Question: What is the timeline to register a company in India?

Answer: Company Registration takes around 7 -10 working days.

Question: Can foreign nationals be a directors of Company registered in India?

Answer: YES, even a foreign national can be a director of an Indian Company.

Question: Where can I find more information on Company Registration in India?

Answer: One can go visit our page and search, find the related topic link- https://blog.caonweb.com/ 

SPICE PLUS COMPANY rEGISTRATION

SPICE PLUS COMPANY PROCEDURES

The Ministry of Corporate Affairs has launched a web-based form for Company registration in India known as the Spice Plus Form i.e. Spice+, the form is available on the MCA portal with effect from 23rd February, 2020. This move is aimed to further simplify the Company registration process and provide the user with ease of doing business and is therefore set to revolutionize the Company registration process in India.

The web form Spice plus i.e. Spice+ is designed to cater applications for various Company registrations, whether it’s a Public Limited Company, One Person Company, Private Limited Company, Nidhi Company, Section 8 Company or Producer Company. The new web form is set to replace the old form filing system wherein all four incorporation forms were filled and then uploaded on the MCA portal.

The newly launched Spice Plus web-based form is a post login service which will offer the required registrations through one web form. Therefore we can say it’s a complete bouquet of services required to run a Company thereby saving considerable amount of time and procedures.  

Related Blog:  HOW TO REGISTER A COMPANY IN DUBAI

The List of services provided by the Spice Plus form are as follows:

  • Name Reservation (Run would be discontinued for Company Registration)
  • Allotment of Director Identification Number i.e. DIN
  • Company Incorporation Certificate
  • PAN Number of the Company
  • TAN Number of the Company
  • Goods and Service Tax Registration
  • EPFO Registration
  • ESIC Registration
  • Opening of Bank Account.
  • Profession Tax Registration only for the State of Maharashtra

The Spice plus (Spice+) being an integrated web form is offering ten services by three Central Government Ministries and Departments:

  • Ministry of Corporate Affairs: Company Registration
  • Ministry of Labour: ESIC, EPFO
  • Department of Revenue in the Ministry of Finance: PAN, TAN

Related Blog: Online Business Registration Anywhere in India

The Spice+ form is divided into two parts:

Part A: Part A of the form Spice+ deals with name reservation of the Company, it can be used for taking name approval of the proposed Company and also for filing Company registration in one go.

Part A can be filled separately and once the name is approved part B needs to be filed using the same user login ID.

 Part B: Part B of SPICe+ offers following services:

  • Incorporation of Company   
  • Allotment of DIN
  • Mandatory issue of PAN Number
  • Mandatory issue of TAN Number
  • Mandatory issue of EPFO registration
  • Mandatory issue of ESIC registration
  • Mandatory issue of Profession Tax registration only in case of Maharashtra
  • Mandatory Opening of Bank Account for the Company
  • Allotment of GSTIN (if so applied)

Once the form SPICe+ is filled completely and submitted the form gets converted into a pdf format for affixing Digital Signature Certificates. Thereafter the digitally signed application along with the linked forms can be uploaded on the MCA portal. The form so filled needs to be certified by a professional for which one can take help of the Ca services.

Related Blog : ALL ABOUT COMPANY REGISTRATION IN INDIA

FAQ:

Q. What is the difference between SPICe form and Spice+?

A. Spice is an eform whereas Spice+ is the newly launched integrated Web form.

Q. What is the maximum size for uploading SPICe+ forms?

A. 6 MB for each of the PDF form.

Q. Is it mandatory to take registrations offered in Spice+?

A. Yes, except for GST registration all other registrations are mandatory

Q. Where can I find more information regarding Company registration process?

A. One can visit our site for more related information Click here: Company Registration

Steps for starting a business in India

Steps for starting a business in India?

The first step before starting a business in India is to choose the right business structure. A right business structure is one which compliments the business of the entrepreneur. The available business structures in India are as follows:

  • Sole Proprietorship
  • Partnership Registration
  • Company Registration
  • Limited Liability Partnership

Being the most important step one needs to consult a professional to choose the right business structure. A Private Limited Company is the best and highly recommended business structure to start a business in India. Here are the benefits of Company Registration:

  • Provides limited liability to its shareholders
  • The directors may be different form the shareholders i.e. owners
  • Tax benefits
  • Ease of getting bank loans
  • Legal Recognition
  • Perpetual succession
  • Preferred by investors

Once the business structure is decided the next step is to get the same registered. Company incorporation being the popular form of business one can refer the following Company registration process:

  1. UNIQUE NAME: Name registration/ approval is required to find a unique name for the proposed Company. For which a thorough check of MCA database and trademark in the related class needs to be done before applying the name with the Ministry of Corporate Affairs.
  2. DIGITAL SIGNATURE CERTIFICATE: Application for digital signatures need to be filed with the government authorised agencies which are verified by the Controller of Certification Agencies. DSC’s are password protected token used in the Company registration process.
  3. Next is to prepare the related documents and forms for which one can take assistance from professionals or hire them for such Ca services. The incorporation forms are linked forms which contain the following:
  • FORM NO. INC-32 (Simplified Proforma for Incorporating Company Electronically): As the name specifies it’s an integrated form which shall enable the applicant to file the following:
  • Name of the Company
  • Director Identification Number
  • Incorporation Certificate
  • PAN
  • TAN

Related Blog: ALL ABOUT COMPANY REGISTRATION IN INDIA

FORM NO. INC-33

(e-Memorandum of Association): This form contains the main business activity of the Company along with the details of the subscribers to the memorandum i.e. the shareholders of the Company and the amount of authorised capital.

Related Blog – INCOME TAX EXEMPTIONS/DEDUCTIONS

FORM NO. INC-34

(e-Articles of Association): All the rules and regulations along with the procedures for holding meetings, transfer of shares, voting rights etc. are listed in the articles of the Company. It contains the rules required to run the Company as required by the Companies Act, 2013.

FORM NO. INC-35

(Application for Goods and services tax identification number, employee’s state Insurance corporation registration plus Employees Provident fund organization registration): One can apply for GSTIN / EPFO / ESIC through the same form.

Once the forms are filed the company registration process is completed.

After business registration one needs to obtain the PAN i.e. Permanent Account Number and TAN i.e. Tax Account number. Both can be applied through NSDL website by filling form 49A and 49B respectively.

All businesses where the turnover exceeds 20 Lakh need to take GST registration. It is compulsory for E-commerce businesses as well.

The registration process takes around 7-12 working days. Business registration is not an easy task it requires professional interface at every step.

Brand registration is required for the logo and the brand name. For which trademark registration can be applied. Once the application is filed the words TM can be used with the logo and after approval R mark is used.

Frequently Asked Questions:

Que- What are the documents required for Company Registration?

Ans- DOCUMENTS REQUIRED:

  • PAN Card of the promoters
  • Passport size photograph of both the promoters
  • Aadhaar Card/ voter id of the promoters
  • Bank Statement/Utility bill of both the promoters
  • Rent agreement, if the registered place of business is a rented accomodation
  • Electricity bill/ Water bill (registered place of business)

Related Blog: What entities are eligible for MSME Registration & Document for MSME?

Related Blog: WHAT IS THE GST REGISTRATION PROCEDURE

GST Registration

Choose Your City For Company Registration.

Company Registration In Delhi

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Private Limited Company Registration

Private Limited Company

A private limited company is an organization which is secretly held for independent ventures/company. The obligation of the individuals from a Private Limited Company is constrained to the measure of offers separately held by them. All the information about Private Limited Company is talked about in the article.

Area 2(68) of Companies Act, 2013 characterizes privately owned businesses. As indicated by that, privately owned businesses are those organizations whose articles of association confine the limit the exchange capacity of shares and restrict them to buy or subscribes. There are many characteristics of a private company.

Below are some features of a public company which differs it from Public companies:

  • In Private Limited Company, no minimum share capital is required.
  • Private Limited Companies don’t have permission to transfer their share freely unlikely public companies
  • Private Limited Companiescan hire a minimum of 2 employee and maximum 200 in their company
GST Registration

Types of Private Limited Company

Well, there are three types of Private Limited Companies

  • Limited by shares, the risk of the individuals is highly controlled to the sum unpaid to the organization regarding the shares held by them.
  • Limited by guarantee, here the individuals’ liabilities are restricted to the measure of cash they certification to pay on the off chance that the organization is beating up.

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

  • Unlimited liability, the risk of individuals is boundless in this kind of privately owned businesses. Owned resources of individuals can be connected and sold when the organization is being beaten up.

Different requirements of Private Limited Company

  • Members should be in between 2 to 200
  • Minimum two directors are must and every director should have DIN i.e. Director Identification number
  • Name should have included Pvt. Ltd on the end of the company’s name
  • Registered office address is a must.
  • Digital signature certificate is also must require in the digital world
  • Professional certificate is also needed like CA, secretary and many more
Accounting & Auditing

Various advantages of Private Limited Company

Incorporated association, an organization is made when it is enrolled under the Companies Act. It appears from the date referenced in the certificate of joining. As per the MCA’s company act, Company which owned more than two employees should be registered with full name.

Legal person, well companies are not a person. These are registered under the law and cannot work as their own because it must require some legal person to run it which are chosen by shareholders. These persons are called directors of the board.

Separate Legal entity, an organization has a lawful particular substance and is independent of its individuals. The loan company of the organization can collect their money just from the organization and the property of the organization. They can’t sue singular individuals who are part of the company.

Ceaseless Existence, an organization is a steady type of business association. Its life does not rely on the passing, indebtedness or retirement of any or all shareholder or executive. Law makes it and law alone can break up it. Individuals may come and go however the organization can continue forever

Related Blog – Company incorporation in Dubai

Common Seal/stamp, an organization not being a person can’t sign on the documents unlikely human person. It acts through a characteristic individual who is called its executives/directors. Be that as it may, having a legitimate character it very well may be bound by just those records which bear its sign. Along these lines, the law has accommodated the utilization of regular seal, with the name of the organization engraved on it, as a substitute for its signature.

Company Registration In Dubai

Get  Import Export Code Online on lowest cost.

To conclude Private companies are totally different from public companies and a private company is registered association under the company act of government which is artificial legitimate individual, having a free lawful, element with a ceaseless progression, a typical seal for its signs, a typical capital comprised of transferable shares and conveying highly controlled risk.

Choose Your City For Company Registration.

Company Registration In Delhi

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Seven Steps for Private Limited Company Registration

Seven Steps for Private Limited Company Registration in Delhi

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.
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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.

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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.

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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.

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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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Company Registration

What is the procedure to take registration of an IT Company in India?

If you are interested in starting an IT Company in India, then it is mandatory to establish the legal presence of your company. You have to file an online application to the Registrar of Companies or ROC for online company registration in India.

You can also take the help of professionals through our online platform of CAONWEB in the company registration process of IT Company in India. Professionals registered with CAONWEB offers the best services of online company registration in India at affordable prices and quick turn-around time.

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The procedure to register an IT Company in India includes the following steps:

Step 1: Obtain a Digital Signature Certificate (DSC):

The company registration process is online and digital signatures are required to file the forms to the MCA for company incorporation. It is mandatory to obtain DSC for all subscribers and witnesses in the memorandum and articles of association.

Step 2: Apply for Director Identification Number (DIN):

DIN is an identification number for a director and it has to be obtained by anyone who wants to be a director in a company. One DIN is enough to be a director in any number of companies. There are 2 ways of obtaining DIN:

Option 1: File form DIN 3 which requires basic details of the proposed director along with identity proof and address proof. Now the applicant need not file DIR-3 separately and it can be applied within SPICe form (INC 32).

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

Option 2: File SPICe form (INC 32) and DINs gets issued to the proposed directors who do not have a DIN. Under SPICe form (INC 32), maximum of three directors can apply for DIN. If there are more than 3 Directors and more than 3 persons doesn’t have DIN, then the applicant has to incorporate Company with 3 Directors and have to appoint new directors later on after incorporation.

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Step 3: File for Name Approval

There are 2 options for the name approval for the purpose of company incorporation:

Option 1: You can apply for name approval thorough RUN (Reserve Unique Name) form.

Option 2: You can apply for name approval thorough SPICe form (INC-32).

Step 4: File SPICe form (INC-32)

Ministry of Company Affairs has introduced SPICe Form (INC-32) and it serves the following purposes with the benefit of a single application for company incorporation:

  • 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 provided 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 is 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 are required to download them and affix digital signatures and upload both forms on the MCA portal.

Recently Ministry of Corporate Affairs (MCA) has introduced a new form AGILE (Application for Goods and Services Tax Identification Number, Employees State Insurance Corporation Registration plus Employees Provident Fund Organization Registration) which is also linked form with SPICe Form (INC-32).

These are the steps of online company registration in India. If you have any query and you want detailed information about online company registration in India or company registration process in India, then you can take help of professionals through our online platform of CAONWEB.

ALL ABOUT COMPANY REGISTRATION IN INDIA

ALL ABOUT COMPANY REGISTRATION IN INDIA

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.

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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.

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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.

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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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