How to register Private Limited Company?

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By Hiral Vakil on March 11, 2019

A Private Limited Company formed under the Companies Act, 2013 is the most popular form of business entity which requires atleast 2 directors and maximum of 15 directors. A minimum of two shareholders, who may be individuals or body corporates acting through their representatives, are required to start the Private Limited registration procedure and a registered office location is required within India. It may be noted that the Directors can be same as the shareholders or subscribers to Memorandum of Association and Articles of Association (MOA and AOA).

A private limited company has all the advantages of a partnership firm like flexibility, greater capital contribution as well as advantages of limited liability, greater stability and legal entity. It can be said that a Private Limited Company stands between partnership and widely owned Public Company.

Documents needed to register an Private Limited Company

To incorporate a Private Limited Company in India, the following documents are essential:

  • ​Self attested copy of PAN Card of the Directors
  • ​Self attested copy of Address Proof of the Directors, and
  • Passport size photograph of Directors, to start the Private Limited incorporation procedure.
  • Utility Bill of the proposed Registered Office of the Private Limited Company,
  • No-Objection Certificate from the Landlord, and
  • Memorandum of Association (MOA)
  • Articles of Association (AOA)

Procees of Incorporating Private Limited Company

Step 1: Obtain Digital Signature Certificate (DSC) for the Directors

To obtain a DIN (Director Identification Number) for the Directors of the Private Limited Company, as well as for signing all the E-forms to be filed with the Ministry of Corporate Affairs (MCA), a Digital Signature Certificate (DSC) is required. Therefore, a Digital Signature Certificate for the proposed director must first be obtained. You can get a Digital Signature Certificate from Quicko within 1 day of filing application of DSC which will remain valid for 2 years.

Step 2: Filing of E-Form RUN for Name Approval of proposed company

Once the DSCs are obtained, an application for name approval can be made in RUN Form by the proposed company. It is very important to ensure that the name is strictly in adherence with the Guidelines for Selecting Company Name. In case the proposed name is not accepted by the MCA, then fresh application needs to be made through RUN Form again.

Step 3: Filing E-Form INC 32 for Incorporation

It is very essential to get a suitable name for your Private Limited Company, which adequately represents the business you are doing under the company. Once the name approval process is complete. Form INC 32 allows you to incorporate a private limited company. It is a linked form hence e-MOA and e-AOA needs to be filed in Form INC-33,34 along with Form INC-32.

The Directors can file the following incorporation documents and register the Private Limited Company using E-Form INC 32:

  • Memorandum of Association (MOA)
  • Articles of Association (AOA)
  • Utility Bill of the proposed Registered Office of the Private Limited Company
  • No-Objection Certificate from the Landlord, and
  • Rental Agreement Copy between the Private Limited Company and the Landlord s
  • Additional documents may be required from case to case basis

If the application for incorporation of Private Limited Company is acceptable, the Registrar would issue the incorporation certificate which shall not take more than 3 to 4 days. On incorporation every company so registered shall be assigned a Company Identification Number (CIN). Once, the incorporation certificate is issued, the Private Limited Company will be considered to be registered.

FAQs:

1. How much capital do I need to start a Private Limited Company?

Minimum authorized capital of Indian Rupees 100,000 is required to form a Private Limited Company in India. However there is no upper limit.

2. Who can become a Director in a Private Limited Company?

Any person who is over 18 years of age can be a Director in any Private Limited Company. There are no limitations in terms of citizenship or residency. Therefore, foreign nationals can also be directors in a Private Limited Company incorporated in India.