Set Your Business by Incorporating Private Limited Company
Set your business is everyone goal. Everyone wants to be an entrepreneur. Keeping this goal in mind, every person first envisages what type of entity or how to register the entity in India.
As far as the first question is concerned, we have already made aware everyone regarding the benefits attached to the private limited companies. Now, let's understand the process of registering private limited companies. Before going through the registration process, let's brief us about the history of the incorporation process. Earlier company registration process requires a long process which takes almost one month to register the private limited company. Earlier all the processes were segregated which were time-consuming and delayed the process to start a business.
Therefore, MCA introduced the form INC-29 to shorten incorporation process to single day. This was the great initiative taken by the MCA because earlier to introduce INC-29 in all the countries except India registration of private limited company takes much lesser time.
So, now let's learn the registration steps piece by piece:
- Apply for DSC:
DIN is an eight digit number assigned to every director. A person can't be a director if he does not have DIN. It is a distinctive identification number for an existing director or proposed director, and it is allotted by the Ministry of Corporate Affairs (MCA).
Digital Signature Certificate (DSC) is a digital signature which can be attached to an electronic document to verify the applicant's identity.
- Draft MOA and AOA
Memorandum of Association (MOA)
MOA is the main document which contains the objectives of the business. MOA has seven clauses which suggest company name, registered office address of the company, objects of the company liabilities of the members, capital of the company etc.
Articles of Association (AOA)
AOA governs the internal working of the company. MOA defines the relationship with outsider while AOA defines the relationship among the members of the company. It defines some of the important business such as director appointment, voting power of the company.
Both these documents can be changed by following due process as defined companies act, 2013.
- File form INC 29:
INC 29 is the single integrated form issued by the ministry of corporate affairs for the incorporation of the company. INC-29 is a one step to get Director Identification Number (DIN), Name Approval and Incorporation application process. It's a fast track route to get the company incorporated in an expedited manner.
What we have discussed so far is a new process to register private limited registration in India. Because of this shorten process, India rank has been improved from 158th to 142nd on Doing of business in India.