Procedure to incorporate a Private Limited Company

Introduction

As per Section 2 (68), a “Private Company” means a company that in its articles:

• Restricts the right to transfer its shares;
• Limits the number of its members to 200;
• Prohibits invitation to the public to subscribe to any of its securities of the company.

A Private Company is a widely known business entity that is suitable for higher growth aspirations under the Companies Act, 2013. A Private Limited Company is a company that can be registered with a minimum of two directors and subscribers/shareholders. It is an entity that enjoys various privileges and that is the reason is it very popular and incorporated by many. Like, the private companies are neither required to appoint any women director nor required to appoint an Independent Director. No need to follow the provision of rotation of directors. Private Companies doesn’t require to form Audit Committee and Remuneration and Nomination Committee. Also, no need to appoint a Secretarial Auditor.

You can see how many of the regulations do not apply to private limited companies. So, if you have also made up your mind to go for Incorporating a Private Limited Company, then contact us at the earliest. We will then start the processing of Private Limited Company Registration.

Let us discuss the procedure of the Private Limited Company Registration Process to get full detailed information about the same.

Registration Process

1. Name Approval

To begin with, the name approval application is required to be filed in Part A of SPICE+ form. This form is filed to reserve name of the company you would like to incorporate. And, maximum two names can be applied in the application. It must be noted that the name of the company must be unique and not similar to any other existing company. The name is then reserved for 20 days by the MCA i.e. The Ministry of Corporate Affairs. Government fees charged is Rs. 1000/-

2. Digital Signature Certificate

In addition to it, after the name of the company is successfully reserved, the next step is to obtain DSC i.e. Digital Signature Certificate of all the proposed directors and subscribers of the company. DSC is a token that is necessary for filing online returns and documents.

3. Submission of Incorporation Certificate

After the name approval is filed and DSC is obtained, next step is to prepare incorporation documents like MOA (Memorandum of Association), AOA (Article of Association) and file the same and payment for it with the department.

4. Issuance of Certificate by ROC

When the incorporation documents of the company are successfully submitted, the department then verifies and inspects the documents. When the application is verified only, then the Issuance of the Certificate by ROC shall be issued.