How to Create New Private Limited Company in India

Business

How to Create New Private Limited Company in India

Private Limited Company is one of the most preferred business models in India. It is a formal business model that offers limited liability protection and easier access to funding compared to other models like sole proprietorships and partnership firms. 

In this blog post, we shall explain how to create a new private limited company in India. If you’re planning to set up your own company, this post will help you understand why choosing the pvt ltd co model would be a good idea. 

Why Create a New Private Ltd Company?

Establishing a new private limited company is a great opportunity for entrepreneurs. This company has various advantages, such as limited liability protection, perpetual succession, enhanced credibility, easier access to funding (compared to unregistered business entities), etc.

Registering a private ltd company is an easy process that can be completed online through the official MCA portal. Therefore, you don’t have to run around to different offices to complete this process.

New Pvt Ltd Company Incorporation Requirements

Here are the requirements for registering a new private limited company:-

Documents for a New Private Limited Company

If you want to register a new private limited company, you will need the following documents:-

New Private Limited Company Registration Process

To register a new private company in India, you need to follow the steps explained below:-

Step 1:- Obtain DSC

To register a new pvt ltd company, it is essential for directors and shareholders to have a digital signature certificate (DSC). This is issued by certifying authorities. While applying for DSC, proof of identity and address are required. 

Step 2:- Secure DIN

DIN is a unique ID for directors. All the directors in India must possess a DIN. To obtain it, a director must file a DIN application using Form DIR-3 via the MCA portal. 

Step 3:- Name Reservation

To reserve the company’s name, you must file Form SPICe+ Part A on the MCA portal, where you can propose two names. The MCA checks the availability of the names and approves them if they meet the required criteria.

Step 4: Prepare MOA and AOA Draft

The MOA stands for Memorandum of Association. This is an important company incorporation document that defines the company’s objectives and proposed activities. 

The AOA stands for Articles of Association. This document sets out the internal rules, regulations and management structure of the company. These two documents form the company’s legal foundation.

Step 5: File the SPICe+ Form

The SPICe+ form is an integrated form that covers almost all steps of company registration, i.e., name reservation, incorporation, DIN allotment, PAN, TAN and registration under EPFO & ESIC. 

In this form, you must fill in all the required details like registered office address, details of directors and shareholders, share capital structure and business activity. The prescribed fees for application must also be paid while filing the form.

Step 6: Certificate of Incorporation’s Issuance

After the SPICe+ form is submitted, the Registrar of Companies verifies all the details. If the information is complete and accurate and aligns with MCA requirements, then the ROC will issue the Certificate of Incorporation in the company’s name. This certificate includes the company’s Corporate Identity Number.

Step 7: PAN and TAN application

It is essential to apply for PAN and TAN. The applications for these documents are part of the SPICE+ form but the Income TAN Department is responsible for issuing them, not the Registrar of Companies. 

Company Registration

Conclusion

Starting a new pvt ltd company is a good idea for business owners who want to enjoy limited liability protection, perpetual succession, enhanced credibility and easier access to funding. Need assistance in pvt ltd company registration? Connect with our company registration experts at Registrationwala. 

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