Register a Private Limited Company
Private limited company registration is the process of legally forming a company that is privately owned. It is a popular business structure for entrepreneurs and small to medium-sized businesses due to the benefits of limited liability, separate legal identity, and the ability to raise capital by issuing shares. The registration process involves selecting a unique company name, submitting the necessary documents, and complying with the legal formalities outlined by the relevant government authorities. Once registered, the private limited company gains recognition as a distinct legal entity, capable of owning assets, entering into contracts, and bearing its own liabilities, separate from its owners.
Eligibility Criteria to Register a Private Limited Company –
To register a private limited company in India, certain eligibility criteria must be met. These requirements ensure that the company is formed in compliance with the laws governing the corporate.
Here are the key eligibility criteria to register a private limited company –
1. A private limited company must have at least 2 directors. The maximum number of directors allowed is 15.
2. A private limited company must have at least 2 shareholders. The maximum number of shareholders can be 200.
3. At least one director must be a resident of India. A resident of India is someone who has lived in India for a total period of at least 182 days during the preceding calendar year.
4. The company must have a unique name that is not identical or similar to any existing company or trademark. The name should be as per the rules set out by the Ministry of Corporate Affairs (MCA).
5. The company must have registered office in India.
6. The directors must obtain a Digital Signature Certificate (DSC).
7. Every director must have a valid Director Identification Number (DIN).
8. There is no minimum capital requirement for private limited company registration. However, the company must declare its authorized share capital in the registration documents.
9. The director must be at least 18 years old to be eligible to form a company.
Documents Required to Register a Private Limited Company –
Incorporation of Private Limited Company India involves submitting several documents to ensure compliance with the regulations outlined by the Ministry of Corporate Affairs (MCA). Here is a list of the essential documents required for the registration process –
1. Identity proof of Directors and Shareholders
2. Address proof of Directors and Shareholders
3. Proof of registered office address
4. Digital Signature Certificate (DSC)
5. Director Identification Number (DIN)
6. Memorandum of Association (MOA)
7. Articles of Association (AOA)
8. Incorporation Form
9. Bank Statement for Capital Contribution
Steps to Register a Private Limited Company –
1. Obtain a Digital Signature Certificate (DSC) – You can obtain a DSC from government-approved agencies by submitting identity proof and address proof.
2. Apply for Director Identification Number (DIN) – The DIN can be applied online through the Ministry of Corporate Affairs (MCA) portal.
3. Choose a Company Name – Select a unique name for the company that is according with the naming guidelines set by the Ministry of Corporate Affairs (MCA).
4. Draft the Memorandum and Articles of Association (MOA & AOA) – These documents must be prepared with the help of a professional to ensure that they in accordance with the Companies Act, 2013.
5. Apply for Incorporation – To formally incorporate the company, you need to file the necessary forms and documents with the Ministry of Corporate Affairs (MCA).
6. Payment of Registration Fees – Pay the prescribed fees for the incorporation process.
7. Certificate of Incorporation – Once the MCA processes the application, it issues a Certificate of Incorporation. The certificate is issued electronically and can be downloaded from the MCA portal.
8. Apply for PAN and TAN – The PAN and TAN can be applied for through the SPICe+ form during company registration. The details are provided along with the Certificate of Incorporation.
Common Mistakes to Avoid During the Registration Process –
To register a Private Limited Company is a complex process that involves several steps and legal requirements. While the process is straightforward for those who follow the steps carefully, mistakes can delay or even halt the registration.
Here are some common mistakes to avoid when register a Private Limited Company –
1. Choosing an unavailable company name
2. Incorrect or incomplete documents
3. Not providing a valid registered office address
4. Failure to obtain Director Identification Number (DIN) for all directors
5. Not obtaining a Digital Signature Certificate (DSC)
6. Incorrectly drafted MOA and AOA
7. Non-compliance with legal name guidelines.
Conclusion –
Registering a private limited company in India is a well-defined and systematic process that, when followed carefully, ensures your business is legally established and compliant with the country’s corporate laws. From choosing a unique name to obtaining the necessary documents, each step is crucial to the successful incorporation of your company.
Global Jurix is one of India’s leading full-service law farms. Some of the main services provided are trademark registration, GST registration, merger acquisition, MSME registration services, private limited company registration, FDI consultancy, corporate and commercial law, and copyright registration.
