{"id":8407,"date":"2018-11-19T18:51:06","date_gmt":"2018-11-19T13:21:06","guid":{"rendered":"https:\/\/www.instamojo.com\/blog\/?p=8407"},"modified":"2021-03-01T12:08:48","modified_gmt":"2021-03-01T06:38:48","slug":"registering-a-private-limited-company-in-india-2018-update","status":"publish","type":"post","link":"https:\/\/www.instamojo.com\/blog\/registering-a-private-limited-company-in-india-2018-update\/","title":{"rendered":"Registering a Private Limited Company in India (2018 Update)"},"content":{"rendered":"

A Private Limited Company registration in India is customary for starting a new business. This structure is developed under the organized business sector governed by specific Act and provisions. <\/span><\/p>\n

A company in India is incorporated and registered under the Indian Companies Act, 2013<\/strong> which has appointed the Ministry of Corporate Affairs as a governing body. In this article, we present a step-smart manual for a Private Limited Company Registration<\/span><\/a><\/span> in India.<\/span><\/p>\n

Simplified Guide on Private Limited Company Registration Process:<\/b><\/span><\/h2>\n

Among the numerous type of companies under the Companies Act, this article highlights the requirements of a Private Limited Company that has share capital. <\/span><\/p>\n

It is a body corporate that offers separation of ownership from the management in addition to the limited liability of its members. Registered with a minimum of 2 directors and members, it can have up to a maximum of 15 directors and 200 members.<\/span><\/p>\n

Here is a simplified and step-wise guide on how to register a company where the legalities are handled by a Company Secretary or a Chartered Accountant.<\/span><\/p>\n

1. Obtain Digital Signature Certificates:<\/b><\/h3>\n

A Digital Signature Certificate is known as DSC. All the filings, including the registration application, is made online. The DSC procurement is the pre-requisite for the promoters. Any e-form filed in connection with a company requires affixing DSC of the authorized person. In the case of application of incorporation in SPICe forms, the directors and members are required to affix their signature in their respective forms.<\/span><\/p>\n

2. Reserve Unique Name for Company:<\/b><\/h3>\n

Naming is a significant matter for every business as it later creates the brand value in itself. The first step for company incorporation is to reserve the company name. While the formulation of a company name<\/span><\/a><\/span>, the factor of distinctiveness should be kept in mind along with its prescribed provisions. The application of name reservation follows name search by the professionals and checks on whether any other company\/ LLP are already registered with the same name or whether a trademark is registered. Further, the applied name must also be in line with the provisions of name availability.<\/span><\/p>\n

The application is usually made using web-form named RUN (Reserve Unique Name). Here, two alternate names are applied in preferential order with payment of INR 1,000. MCA provides one chance to re-submit the application if none of the names is approved.<\/span><\/p>\n

Upon approval, the name is reserved for the applicant for a period of 20 days by the issuance of Name Approval Letter. Within the given time, the promoters must process the incorporation application.<\/span><\/p>\n

3. MoA, AoA and other Documents:<\/b><\/h3>\n

The documentation is a major part for incorporating a company. Therefore, one must take care while drafting it. MoA and AoA of a company are the charters defining the operational boundaries of a company and its internal rules and regulations. <\/span><\/p>\n

An important clause of MoA (Memorandum of Association) is the object clause where the company needs to prescribe its main business activities. This clause is carefully crafted, knowing that a company cannot indulge in an activity that is outside the prescription of this clause.<\/span><\/p>\n

The company is a private limited, the below-mentioned three clauses are included in its AoA in addition to the general clauses.<\/span><\/p>\n