If you are planning to setup a business in India, the first and supreme step is to set-up the legal existence of your business in India by registering your business as private limited company in accordance to the applicable provisions of Companies Act, 2013.
As a Startup, you have many options to business structure such as Sole Proprietorship, Partnership Firm, One Person Company (OPC), Limited Liability Partnership (LLP), Private Limited Company, and Public Limited Company. It is pre- requisite before starting any business to register your business. The first move is to select the type of business structure you want to choose for your purposed business setup among different sort of business structure available under the different law in India.
One of most popular business structure is Private Limited Company in India. The Private Company registration process is totally online and for incorporation of private limited company basic requirement are two people as shareholders and two persons as directors.
Advantages of registering a Private Limited Company (PLC) in India:
You should choose and register your business as a Private Limited Company as there are many advantage of the Private Limited Company registration:
Separate legal identity– One of best benefit for registration of private limited company is separate legal entity from its shareholder in the eyes of law and due to this the feature, the shareholder of the private limited company are accountable only for those activity which are taken up by them and not by other shareholders.
Limited Liability– Second benefit is liability of shareholders of the private limited company has limited to the extent of their shareholding portion in the company and personal belongings of shareholders cannot be deploy for the repayment of the liabilities of the company under any condition.
Perpetual succession– Third benefit is the life of the company does not come to an end even with the death of all shareholders and life of the business continues due to one of best feature separate legal identity of private limited company.
Easy and free transferability of shares– Shares held by shareholders of the private limited company can easily transfer as shareowner have to simply file and sign the share transfer agreement and give it to the buyer of shares along with share certificates.
Raising the foreign investment (FDI)– Any NRI or foreigner can make investment in the private limited company, without approval of government however, company have to report to RBI. Thus, the raising of foreign investment is easier in this form of business structure than others.
How to register a Private Limited Company (PLC) in India?
If you are looking for your business setup in India and worry how to register a private limited company in India, then you can easily register company in India since it is online process with the help of professionals providing services online by CS, CA, Layer, through our the online platform of SetyourBiz.com.
Steps for registering a Private Limited Company in India:
One has to follow easy steps which are explained in detail below: For private limited company registration in India,
Step 1: Apply for a Digital Signature Certificate:
The first step for registration of company is to get the Digital Signature Certificates (DSC) of the people involved. The Digital Signature is important for sign all E-form required in the process of company registration. Digital Signature Certificate is also known as DSC is obtain by following Mobile and Video verification and issued by the Certifying Authority.
The people involved in company registration in India are shareholders and Directors for the proposed company. Company ownership belongs to the shareholder. The said shareholder also called subscriber are need to sign e-MOA and e-AOA by using Digital Signature whereas proposed directors shall have to take DIN Number by making an online application in e-form Spice + in the next step.
Digital Signature Certificate Requirement list:
- Applicant’s Color Passport size photograph;
- Applicant’s Latest Address proof; and
- Self-attested PAN card copy for Indian Individual applicant.
Step 2: Obtain Director Identification Number
DIN is a number issued by Ministry of Corporate Affairs to all people purposing Director and one can take DIN number by filing application in e-form spice +, However for subsequent director application for DIN is filed in e-form DIR-3.
The issued DIN is also called DPIN for Limited Liability Partnership. There is not any difference between DIN and DPIN and DPIN is used for appointment as Designated Partner in the LLP.
Step 3: File for Name Reservation Application
For filing Name application there are 2 options:
Option 1: Apply for name reservation online by filing form Spice + Part A.
Option 2: Apply for name reservation online by filing online form Spice + Part B.
Step 4: File SPIC + Part B Form (INC-32)
Ministry of Company Affairs has lunched SPIC + Part B Form (INC-32) and with the following purposes with the benefit of a single company registration application:
- DIN allotment application
- Company name reservation
- Registration of a new company
- PAN and TAN allotment
The Practicing professional (Chartered Accountant, Company Secretary, Cost Accountant or advocate) is need to certifies that all the information in the SPIC + Part B Form (INC-32) is correct.
Step 5: Prepare e-MoA (INC-33) and e-AoA (INC-34)
In India Memorandum of Association (MOA) and Articles of Association (AOA) are issued in electronic form hence for registration of company one have to prepare it in E-form INC-33 for MOA and INC-34 for AOA and these e-forms are filed as a linked form with SPIC + Part B Form (INC-32) and must be signed by the person who are first promoter and shareholder.
Step 6: PAN and TAN Application
Through e-Form SPIC + Part B Form (INC-32), applicant can also apply for the purposed company’s PAN and TAN by using e-forms 49A for PAN and 49B for TAN. These e-forms is integrated with e-form Spice + Part B. for filing this form one have to only affix the Digital Signature obtain for filing document with MCA portal.
List Documents need for incorporation of Private Limited Company in India:
A. Where director and shareholders are Indian Nationals
- Proof of registered office address – NOC or Rental Agreement
- Utility bills must be latest one and should not be older than two months
- Approval letter in case the proposed company name includes any word(s) or expression(s) for that central government approval required.
- If the purposed name of your company is similar or closely resemble to a registered trademark or an application for registration of trademark is pending under the Trade Marks Act, then you have to compulsory attach the NOC or Resolution as NOC for use of trademark along with Trademark Registration certificate or trademark application copy
- Pan card copy
- ID proof as Aadhar/Voter ID/ Driving License/Passport any one from above
- Passport size color photo
- Latest address proof such as Bank statement latest one/ Telephone Bill/Mobile Bill/Electricity Bill in the name of shareholder.
B. Where director and shareholders is a foreign National
- Address proof which can be driving license, residence card, bank statement, or a form issued by Government