Navigate the Complexities of Registering a
Private Limited Company In India
There are many reasons why entrepreneurs choose to register a private limited company in
India. Some benefits are limited liability, ease of raising cash, and higher credibility. However,
many legal and formal steps must be taken, which can be scary.
Proper knowledge and guidance can help you in starting a company in India. This article tells
you everything you need to know to establish a private limited company in India successfully.
How to Understand a Private Limited Company
A small group of people own a private limited company. The shareholders are only responsible
for the amount of money they put into the company. This makes it a good arrangement for new
and growing businesses. Some important parts of a PLC are:
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Limited Liability: The personal assets of shareholders are safe.
Separate Legal Body: The company is a separate legal body from its members.
Perpetual Succession: The business stays in business even if the owners change.
Number of people: It needs at least two people and can have as many as 200.
What You Need for Starting a Company in India
Before you start the process to register a private limited company in India, make sure the
following conditions are met:
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Directors and Shareholders: There must be at least two directors, and at least one
must live in India. Shareholders and directors can be the same person.
Digital Signature Certificate (DSC): All members must have a DSC to send forms
electronically.
Director Identification Number (DIN): Every director needs a DIN, which can be
applied when the company is registered.
Unique Name: The name that the company wants to use must be unique and not
conflict with other brands or business names.
Step-by-Step Guide to Register a Private Limited Company in
India
● Obtain Digital Signature Certificates (DSC)
It is required for signing electronic documents. Apply through a trusted service, like e-Mudhra or
Sify. Then, send proof of who you are and where you live and finish the verification process.
● Apply for a Director Identification Number (DIN)
The purpose is to give directors a unique identification number for registering a private limited
company in India. If you are not opting for company registration, fill out the SPICe+ or DIR-3
forms.
● Name Approval
To generate names, you can use the Ministry of Corporate Affairs (MCA) portal's RUN (Reserve
Unique Name) service. Make sure the name follows the rules that MCA has set for names. Pay
the fee and wait for the clearance.
● Getting Documents Ready
Prepare a Memorandum of Association (MoA) that describes what the company can do. Also,
prepare the Articles of Association (AoA) that spell out the rules and laws for the group. Other
documents are proof of the directors' and shareholders' identities and residences, proof of the
listed office address, and a letter of approval from the building owner.
● Filing of Incorporation Form (SPICe+)
Simplified Proforma for Incorporating Company Electronically Plus (SPICe+) is a combined web
form that provides 10 services, such as reserving a name, assigning a DIN number, and
incorporating a business.
Fill out Part A to reserve a name, then move on to Part B to incorporate. Include the DSCs,
MoA, AoA, and any other needed papers for starting a company in India. Send in the
incorporation form and pay the fees that are asked for.
● Issuance of Certificate of Incorporation
The Registrar of Companies (RoC) gives out the Certificate of Incorporation once the
application is accepted. The document has the company's Corporate Identity Number (CIN),
proving the business exists.
● Compliance After Incorporation
You can get a (PAN and a Tax Deduction and Collection Account Number (TAN) from NSDL or
UTIITSL for your business. You can start a bank account in the business's name with the
Certificate of Incorporation, PAN, and other papers. If a business makes more than a certain
amount of money, it must register for the Goods and Services Tax (GST).
Important Things to Think About and Problems to Navigate
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How to Pick the Best Name: The name being considered must not sound like the name
of an already present business or trademark. It's a good idea to look for names on the
MCA portal and trademark registry.
Compliance with ROC: It is very important to file with ROC regularly. Not following the
rules can lead to fines and legal problems.
Professional Help: Hiring a company secretary or lawyer can make the process easier
and ensure all legal requirements are met.
Understanding the SPICe+ Form: The combined SPICe+ form is very detailed but hard
to understand. Learn about the different parts and the information that is needed.
On-Time Submission of Documents: To avoid delays, ensure that all necessary
documents are properly prepared and sent on time.
Conclusion
There are many legal and formal steps to register a private limited company in India, but the
benefits make it worth it. People can easily set up a private limited company if they know what
to do, follow the steps, and consider the biggest problems that might come up.
Getting professional help from firms like VJM Global will make the process from idea to
operation even smoother. Also, keeping up to date on compliance rules is necessary for starting
a company in India for a long-term better result.