So, you have that million dollar idea and now you want to follow through that huh? Well first, congratulations on the idea and now for this blog will aid you to follow through the next step, to create and register a private limited company.
What is a Private limited company you might ask? When it comes to India, it is the most common form of a business entity. With this entity, you will have access to easy maintenance, loan accessibility, and other bounties. However, the process is not as easy as it might sound. Although, following the simple steps given below might get our own industry running faster than you might realize.
Step 1: Get access to the proper documents: You will need two documents to initiate the registration process:
- DIN or the Director Identification number of the respective director of the proposed company.
- A Digital signature from one of the company’s directors.
Once you have these two documents, you can now apply for the company’s name
Step 2: Apply for a proper name
Naming a company should be an easy process. But alas, it is not. To that end, a promoter must propose a name for the institution which adheres to the legislative laws regarding trademarks and other business entities. To be succinct, you should choose a name which is not in use currently. To be more comprehensive:
- The name should be unique and should not be in use by any other institute which is currently registered.
- Should adhere to the Emblems and names act 1950
- It should end with “Private limited company”
Once the name is chosen, give it to the registrar and they will approve it (provided everything is in order). After the submission, it generally takes up to 3 to 5 working days for the process to be completed fully.
Step 3: It is now time to give a body to that name i.e. filing for incorporation
Once the name of the institute in approved, you need to take the following documents to the registrar along-with a prescribed fee:
- Association’s articles.
- Memorandums of the associations.
- Declaration of the directors.
- Affidavits of the directors.
Along with these documents, a declaration will be compiled which will state all the rules and requirements which encompass the legitimacy of all the documents that you have compiled. Now, this declaration should be duly signed by the advocate of the Supreme Court or the lawyer or a pleader who has the right to appear before a high court. It might also include the charted accountant who has been involved with the formation of the company or is employed by the company’s director, Manager or secretary.
Along with these documents, other documents regarding the relevant information for registration should also be provided within a span of 12 days.
Step 4: Subscribing Shares to the company
Once the company is named and formed, an individual should adhere to the Companies Act 2013 and sign in their names and subscribe to the shares of the company created. It means that each individual should have at least one share. Each of these subscribers should sign a memorandum within the presence of a witness and state the following:
- Personal description
- No of Shares subscribed
- Nature of the subscribed shares
In the similar fashion, the memorandum and the article should be attested and signed by proper authorities.
Step 5: Get the certificate of incorporation
Now that the company is formed, you must get to the final process to legitimize it fully. To do that, you need to get the certificate of incorporation. This certificate will be issued to you by the company’s registrar. Once the certificate is issued, a company will be treated as an individual.
There is no other way around going through the aforementioned arduous process. However, if you stick with registrationwala, you will get your institute registered lot more smoothly.