Two or more person join together can form a Private Limited Company which is the most visible corporate format in India. The Companies Act, 2013 and the Companies Incorporation Rules, 2014 prescribes the procedure for incorporation of Private limited company. The Companies act 2013 and various Rules framed under it provide a legal framework for incorporation, management and administration of such companies. Individuals and non individuals like Indian and foreign Companies etc can become the shareholders of such companies. The minimum number of persons required to form a company is two and it can have shareholders upto a number of Two hundred. The management of company is administered by Board of directors. Private Limited companies are one of the most attractive venue for Foreign Direct Investment.
Incorporation of a Private limited company in India
1. Formation of a Private Limited Company.
A Private limited company can have maximum of Two hundred ( 200 ) number of members and minimum number of members required is two ( 2 )
There should be at least two (2) directors and maximum number of directors permitted is Fifteen (15)
Hence a minimum two persons are required to form a Private limited Company
2. Formalities in incorporation
Incorporation is doing at the Central Processing Centre of Ministry of Corporate affairs at Gurgaon and will be under the jurisdiction of Registrar of Companies of the State where the registered office is situated.
Incorporation is comprised of following steps
A. Name Application and Approval
For obtaining the desired name for the company to incorporate, we have to apply to the ROC in specified form Spice+ and the processing may take 1 to 3 days and cost involved is Rs. 1000/- subject to the availability of name.
B. Obtain Digital signature
Since all the filing to the Registrar of companies is through on line, all the promoter should obtain a Class 3 Digital signature which costs Rs.2000/-. The application for DSC is online and process is involved mobile Email and video verification. On successful verification of application the applicant will get DSC in a secure device called E Token
C. Submission of Composite Incorporation documents for obtaining Certificate of incorporation and DIN
Next step involved is preparation and submission of incorporation documents like memorandum of association and articles of association online portal of the Ministry of Corporate affairs
The following documents are required for online submission
For Director/shareholder/Director cum shareholder
For Registered office Address
If foreign national is subscriber for company, all the incorporation documents signed by him need to be attested by Public Notary and to be apostilled as per the Hague convention
The new directors will get DIN Number and Certificate of incorporation will be issued in 1 to 3 days. At the Completion of registration of the company, the Ministry will issue the Incorporation certificate along with PAN Card and Tan Number
Thus for incorporation of a company, it may take 4 to 7 days from the date of submission of proper documents for registration of the Company.
D. Submission of AGILE Form for obtaining GST Registration ESI, EPF Professional Tax and Bank account opening
The Incorporation document comprise a mandatory online application form for applying for GST Registration ESI, EPF Professional Tax and Bank account opening.
GST registration is optional but other registrations are automatic. The applicant can select the Bank with whom they want to open their bank account in the Form Agile
E. Spice+ and AGILE form for Name application, DIN Approval and Filing of Incorporation Document and for Other Registrations
The Ministry has recently introduced a Composite form for filing DIN application, Name approval and Incorporation Documents, GST and other registration. If we are very confident about the name we can use this form for registration of company which will help to register the company with 4-7 days
3.Post Incorporation Compliances
After the Company is registered the Company is required to file INC form 20 A for commencement of business and to exercise borrowing powers. The subscribers has to deposit the subscription amount before filing the said form.
If you want our support for registering a Private Limited Company in a cost effective and professional way