Registration Of Private Limited Company
6 November, 2024
Synopsis:
A private limited company is a popular choice with entrepreneurs.
Registering a private limited company is mandatory before starting operations.
Business owners must follow the necessary guidelines for smooth functioning of their company.
A Private company entails a business structure that provides a blend of flexibility and protection, making it ideal for small and medium-sized enterprises (SMEs) owners. Most entrepreneurs opt for registration of a private limited company due to the benefits it offers. This article outlines the step-by-step process of registering a private limited company, covering the legal requirements and documentation processes.
Private Limited Company – Meanings and Features
A Private Limited Company (Pvt. Ltd.) is essentially a privately held business entity, governed by the Companies Act, 2013 and the rules made thereunder. The key features of a private limited company include:
Shareholders’ liability is limited to their shareholding.
The company is a separate legal entity from its owners.
The company continues to exist regardless of changes in ownership.
The company’s shares cannot be freely transferred.
The company requires at least 2 members and allows a maximum of 200 members.
Step-by-Step Process for Registration of Pvt. Ltd Company
You can follow these to register your Private Limited Company:
Secure Digital Signature Certificate (DSC)
A DSC is essential for all proposed directors and shareholders to sign electronic documents. Issued by certifying authorities, the application requires proof of identity and address.Apply for Director Identification Number (DIN)
DIN is a unique ID for directors, obtained by submitting Form DIR-3 on the Ministry of Corporate Affairs (MCA) portal, with proof of identity, address, and a passport-sized photo.Name Reservation
Reserve the company’s name by filing Form SPICe+ Part A on the MCA portal, proposing two names. The MCA checks availability and approves if the criteria are met.Prepare MOA and AOA
The Memorandum of Association (MOA) outlines the company’s objectives and activities, while the Articles of Association (AOA) sets internal rules and regulations.Filing SPICe+ Form
SPICe+ form is used for company registration, including name reservation, incorporation, DIN allotment, PAN, and TAN applications, and EPFO & ESIC registration. Fill in details like the registered office address, directors, and shareholders, share capital, and business activity. Pay the fees for Pvt. ltd company registration. Attach identity proof (PAN card), address proof (passport, voter ID, driving license, or Aadhaar card), registered office proof (rent agreement and NOC or property deed), and a recent utility bill.Certificate of Incorporation
The Registrar of Companies (RoC) reviews the SPICe+ form. If complete and accurate, the RoC issues the Certificate of Incorporation with the company’s Corporate Identity Number (CIN).Apply for PAN and TAN
PAN and TAN applications are part of the SPICe+ form but issued by separate authorities. PAN is issued by the Income Tax Department, and TAN is required for TDS compliance.
Post-Registration Compliance for Pvt. Ltd Registration
Once the company is registered, several compliance requirements must be met. The company must:
Open a bank account in its name for all financial transactions.
Issue share certificates to all shareholders within two months of incorporation.
Maintain statutory registers, such as register of members, register of directors, and register of charges.
Appoint an auditor within 30 days of incorporation.
File a declaration within 180 days of incorporation that every subscriber to the MOA has paid the value of the shares agreed to be taken by them and the company has a registered address.
Register for GST if its turnover exceeds the threshold limit or if it deals in inter-state supply.
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*Disclaimer: Terms and conditions apply. The information provided in this article is for informational purposes only and is general in nature. It is not intended to serve as specific advice for your unique circumstances. Policies, regulations, and legal requirements surrounding trade services are subject to change. We advise you to consult with a legal expert or refer to the latest official guidelines. Approval of services is at the sole discretion of HDFC Bank Limited and is subject to documentation and verification as per the Bank’s requirements.
