Are you looking to launch a business in India? Are you curious about the registration process of a Pvt Ltd company? What is the detailed procedure? It is important to know what the process entails before starting this entrepreneurial quest.
What Is a Pvt Ltd Company?
A private limited company thus becomes a separate legal entity that could own property and enter contracts under its name and is capable of taking loans under its name. In India, Pvt Ltd company registration is often preferred by entrepreneurs due to limited liability offered to shareholders. It means that the owner’s personal assets are protected from business liabilities.
Process for Registration
- Apply for a Digital Signature Certificate (DSC)
Registration starts by acquiring a Digital Signature Certificate, DSC. As the entire process takes place online, the ability to sign electronic documents is contingent upon possessing a DSC. This certificate is required for all directors of the intended Pvt Ltd company.
A DSC is granted by certifying authorities authorized by the government. It ensures security and legitimacy for your online submissions, making it a crucial step to initiate the registration process.
- Obtain a Director Identification Number (DIN)
Every director of Pvt Ltd companies has to supply a DIN number and the DIN number is a number assigned to each director which is a necessary requirement for incorporation to the Ministry of Corporate Affairs (MCA). This process makes it possible for the MCA to easily track the number of directors trading in India which is a requirement set by Business Corporations Department.
In order to get a DIN number to be supplied details such as proof of identity and proof of address shall be required together with a passport sized photograph. When an application is prepared and submitted the DIN usually takes approximately 1-2 working days to receive in return.
- Name Reservation
It is probably the most important decision that is required when choosing the name of a Pvt Ltd company. The name that should be chosen gives rise to the Company and must be unique as well as in compliance with guidelines that are put in place by the Ministry of Corporation Affairs MCA. The availability of the name can be checked at the portal of MCA and there the name of the company can be confirmed to ensure that it adheres to the desired process of registration.
You have the option to reserve a name through RUN (Reserve Unique Name) if the name is available and acceptable. If the name has been prepared by RUN then it can be reserved for you in order that it can remain reserved for you for 20 days in length whereupon you will then have available a full reservation period over which you can complete the registration process in full.
- Preparation of MOA and AOA
Both MOA and AOA are essential documents for registering a private limited company. The objects and objectives of the company along with powers vested in the various legal guarantees given through the MOA are stated in the MOA. But the Articles of Association (AOA) will carry on to better explain how a set of rules and regulations governs management in a Private Limited (PL) company.
The two documents must both be signed by the directors and shareholders, with the shareholders giving their name and address. The two documents must then be submitted to the RO along with any other documents that may be necessary. In order to receive appropriate guidance regarding the form required and to receive help in creating reliable documentation, it would be prudent to seek professional assistance in this circumstance.
- Filing with the ROC (Registrar of Companies)
Once all documents and permissions are in order, submit the registration forms to the ROC. The forms are SPICe+ forms that give the name of the company, the proposed directors therein, the address of the registered office, and other legal documents.
Once all documents are verified by the ROC, after registration you will get the COI, thus issuing the commencement of your Pvt Ltd company.
The Pvt Ltd company registration process in India is an elaborate yet formalized process that involves several steps, including obtaining a DSC and the applying for DIN and filing the necessary documents with the ROC. It offers several merits, such as limited liability, credibility, and growth opportunities. By following the instructions outlined in this guide, you can incorporate your Pvt Ltd company smoothly while being compliant with legalities.
