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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.
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.
Here are the requirements for registering a new private limited company:-
You need at least two people as shareholders to form a private limited company.
Additionally, you need two directors, and each director must have a DIN and a DSC.
The Memorandum of Association (MOA) and Articles of Association (AOA) must be prepared.
You must file the SPICe+ form online along with identity documents.
Identity and address proof for all directors and shareholders, as well as address proof for the registered office, are required.
A private limited company cannot have more than 200 shareholders. Shareholders can be natural persons (individuals) or corporate entities, and they may also include foreign nationals or foreign companies.
It can have up to 15 directors. However, this limit can be increased beyond 15 by passing a special resolution at a general meeting.
If you want to register a new private limited company, you will need the following documents:-
PAN card and Aadhaar Card serve as identity proof for all Indian shareholders and directors.
Digital Signature Certificates for all directors.
Recent color photograph of all directors and shareholders.
Latest Bank statement, Electricity/Water/Gas bill or Telephone bill for address proof.
Memorandum of Association.
Articles of Association.
Other documents, if required.
To register a new private company in India, you need to follow the steps explained below:-
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.
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.
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.
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.
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.
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.
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.
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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