How to Start Private Limited Company in India
Establishment of Business is a very crucial phase for any businessman. You have to deal with all legal requirements to launch Private Limited Company registration a new business or company. To start a business without hassle on the legal part you must ensure the following 4 steps.
Step 1: Digital Signature Certificate:Private Limited Company Registration
The first step is to obtain the DSCs (Digital Signature Certificates) of the Personnel involved in the company. The DSC’s are required for filing e-forms on the online portal of MCA. The Ministry has made Digital Signature Certificates mandatory for online registration procedure for company incorporation and other applications. DSC’s are valid for 1 or 2 years.
The Subscribers and Directors are involved in company formation in India for the proposed company. The person who is the promoter of the company and shareholders is known as Subscribers. The Shareholders are required to file e-MOA and e-AOA with DSCs whereas directors have to obtain DIN (Director Identification Number) by the following steps.
Documents required for Digital Signature Certificate:
Passport size photograph of applicant
Self-attested Address proof of applican
Self-attested PAN card of applicant
Step 2: Procure Director Identification Number
Director Identification Number (DIN) is a unique number assigned by the Ministry of Corporate Affairs to the individual. To become a director in any company DIN is mandatory.
Documents required for application of DIN? Private Limited Company Registration
- Passport size photograph of applicant;
- Self-attested Address proof of applicant; and
- Self-attested PAN card of applicant.
Step 3: Name Reservation
Before applying for a Pvt Ltd Company in India, the name for the proposed company shall be reserved. An Application for Reservation of Name of Pvt. Ltd Company shall be made in e-Form INC – 1 by making payment of fees.
In one application you may provide maximum 6 names in order along with the si application for the proposed name(s). You must make a search for availability of name before filling the application so that you can apply for the names accordingly.
The person shall make an application for name approval considering the following things:
- The name must be easy to pronounce and remember
- The name must provide a distinct identity to the company;
- Make it short & simple;
- The name must not contain any prohibited word;
- It should not infringe any Trademark registered nor shall be similar or identical to any company/ LLP registered.
Once the application is approved, you will get a period of 60 days. The promoters shall make the application for incorporation of the company within the prescribed period of 60 days. If you fail to do so within 60days you have to apply for a fresh application.
Step 4: Certificate
After reservation of the name, the application for issuance of Certificate of Incorporation shall be made. The application for online registration for company is also required to be made by online submission of SPICe (Simplified Proforma for Incorporating Company Electronically) forms.
The application is submitted by paying the Government Fees and Stamp Duty as applicable in case of concerned state on the portal. You can also apply for the PAN and TAN through the same application.
After verification of the application made for certificate of incorporation in SPICe forms, You can issue the Certificate of Incorporation under your seal and signature in electronic form.
After receipt of Certificate of Incorporation, the Private Limited Company comes into existence. The promoters and directors now start the business activities in the name of the company.
The details about the directors of the company will be available on MCA portal under Master Data of the Private Limited Company Registration in india. Public can also access the data by paying the fees.