Step by Step Private Limited Company Registration Process and Documents as per Companies Act, 2013 in India | Jordensky
Startup founders prefer the Private Limited Company business structure the most. To ensure a successful incorporation, you should be aware of some dos and don'ts while setting up a private limited in India.
Under the Ministry of Corporate Affairs, Private Limited Companies are governed under the Companies Act, 2013. (MCA). The MCA has simplified the company registration process, making it easier to conduct business in India.
The Companies Act of 2019's Section 3(1) states that an organization can be established by:
The Directors Identification Number, or DIN, has eight digits. Each candidate who is chosen to serve as a director of the company must submit an application in E-Form DIR 3 as per Section 153 of the Companies Act, 2013. However, the SPICe Form will be used to submit requests for the designation of DINs to the anticipated initial directors of new organizations.
A passport-sized photo, a copy of the applicant's PAN card, and a self-attested copy of their address proof are needed for DIN.
Digital Signature Certificates serve as a secure digital key that verifies the certificate holder's identity. A digital certificate can be used to sign papers electronically, access data or services online, and validate one's identity. The MCA has made it simple to register a corporation online, thus each subscriber's DSC is necessary. The e-MoA and e-AoA must both have the subscribers' and witnesses' digital signatures.
Identification evidence, a PAN card, proof of address, and attesting officer proof are essential documentation for DSC.
Using the linked link, confirm that the organization's chosen name is present on the MCA website.
The RUN webservice also allows the planned name of the organization to be stored. For booking a name for a new organization or changing the name of any existing organization, RUN (Reserve Unique Name) is an easy-to-use web administration. In addition, the applicant must submit an RUN application along with payment of the applicable fees to reserve the desired organization name, which will then be handled by the Central Registration Center (CRC).
In addition, the proposed name of the organization may be Memorandum of Association (MoA),which refers to the company's founding document. A corporation's connection with shareholders is outlined in this formally approved document, which was created during the creation and registration procedure. It also outlines the purposes for why the company was established.
The internal management of a firm is outlined in the Articles of Association (AoA). It specifies the responsibilities, privileges, and authority of the company's management. Similar to that, it is a legally recognised document created as part of an organization's formation and registration process to characterize its relationship with investors and to specify the goals for which the firm has been established.
The SPICe Form (INC-32) is used for single applications for name reservations, new company incorporations, DIN allocation applications, PAN applications, and TAN applications. Additionally, this e-Form is accompanied by supporting documents like a MoA and AoA, a list of the Directors and Subscribers, etc.
The firm will be registered and its CIN assigned once the e-Form has been reviewed and deemed complete. Additionally, potential directors who don't already have a valid DIN are provided one. Additionally, three directors are permitted to submit applications for the allocation of DIN using this integrated form when forming a firm. Additionally, the company would be awarded a PAN and TAN.
The SPICe Form must be submitted to the Registrar of Companies with the following supporting documentation:
Application for a GST number, ESI and EPF registration, and Employees Provident Fund (EPF)registration are made using Form AGILE. Similarly, startups can apply for a GSTIN, an Establishment Code supplied by EPFO, or an Employer Code provided by ESIC through an e-form if they want to register their businesses with SPICe(INC-35).
Companies that were incorporated under the MCA using the SPICe application can use this procedure. Similar to this, various application categories for GSTIN (such as Tax Collectors, Tax Deductors, Casual Taxable Individuals, ISDs, and so forth)should continue with the current process of signing up through the shared platform for GST registration.
To apply for a GSTIN, Establishment code, or Employer code at the time of organizational consolidation is optional, though.
Within 30 days of incorporation, companies are required under Section 12 of the Companies Act of 2013 to provide the Registrar of Companies with their registered office address. Moreover, the confirmation of the enlisted office must be documented in form No. INC.22 together with the requisite expenses asper Rule 25 of the Companies Incorporation Rules, 2014.
Along with the supporting documentation, the Form INC 22 must be filed with the:
A registration document listing the addresses of the company's registered offices;
According to Section 12(3), the Companies Act, 2019, each organization shall hold
Additionally, have a copy of the equivalent available at the entrance to the location where its commercial operations are conducted. It should be displayed there in prominent location with legible lettering in both English and the local dialect of the area in question.
In all business letters, letterheads, billheads, notifications, and other official publications, the organization must have its firm name, registered office address, Corporate Identity Number, phone number, email address, fax number (if any), and website address (if any) printed.
According to Section 10A of the Companies Act of 2013, a company with a capital share that was formed after the start of the Companies (Amendment) Ordinance, 2019 is not permitted to launch a business or exercise any authority unless:
Within 180days of the company's incorporation, a director notifies the Registrar that each subscriber to the memorandum has granted permission for their shares to be acquired by them as of the creation date of such a statement. This declaration is confirmed in INC 20A Form along with any fees that may be agreed upon.
Additionally ,the organization submitted an INC 22 Form to the Registrar in order to certify its registered business status (which we have just discussed in Step 7).
Each organization must appoint an individual or a firm as an auditor at its first annual general meeting, who will maintain the position from the conclusion of that meeting until the conclusion of its sixth annual general meeting, as required by Section 139(1) of the Companies Act, 2013.
An organization can be successfully incorporated and founded by taking the processes outlined above. Similar to this, the organization achieves the status of a distinct legitimate body following incorporation.
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Que - What advantages do Private Limited Companies have in India?
Ans - A few benefits of a private limited business are as follows:
Que - What is the Pvt. Ltd. Company's minimum turnover and capital need in India?
Ans - In contrast to a one person company, a private limited company has no restrictions on capital or turnover.
Que - What is the tax rate for a Private Limited Company?
Ans - A tax rate of 30% of total income is applied to private limited enterprises having a previous-year total turnover of less than 400 crores.
Private limited company that had a total annual revenue of > 400 crores are subject to a 25% income tax.
A private limited corporation is also required to pay income tax surcharge, education cess, and secondary and higher education cess in addition to regular income tax.