Private Limited Company
Why should I register as a Private Limited Company?
So you’ve done your research, selected a name, set up all your contacts, and are ready to make it official. Even if you’re not, here’s a few reasons why you should register your company.
- Increased credibility.
- A range of legal and taxation related benefits.
- Reduced personal liability, thus less personal risk and/or loss.
- Increased capacity to borrow and raise capital.
- More potential to grow and develop.
What do I need to register as a Private Limited Company?
According to the Company Law, 2003, there are certain requirements that need to be met before you can register as a private limited company.
- At least two directors and at the most fifteen directors
- A name for it that isn’t the same as any previously registered companies or trademarked names.
- Authorized capital of one lakh.
- A registered office address (Now this doesn’t mean you have to have a different office space, any address – even your rented home, can be a registered address as long as it fulfills the required conditions w.r.t to NoCs etc)
How to register as a private limited company?
Now that you’re ready to register and have put together everything that is required, here’s the next step!
Step 1: Apply for a Digital Signature Certificate. This can be obtained from one of six private agencies authorized by MCA 21. Company directors must submit the prescribed application form along with proof of identity and address.
Step 2: Apply for a Director Identification Number. For this, you must first obtain a provisional DIN by filing application Form DIN-1 online. This must then be signed and sent to the ministry along with proof of identity and address. Once approved, a permanent DIN is issued.
Step 3: Registering the company name.
Step 4: Submitting unsigned copies of the Memorandum of Association and the Articles of Association for stamping.
Step 5: Obtaining the Certificate of Incorporation.
Step 6: Obtaining a company seal, Permanent Account Number and Taxation Account Number.
Step 7: Creating a current account in the company’s name with the bank.
Registering your company helps enhance visibility and provides advantages over unregistered companies.
One of the most important steps to be taken right in the beginning is to check if the name you want for your company is available. This can be done by running a search to check the availability against other registered names and trademarks with the Ministry of Corporate Affairs and the IP India website. It may happen that the name you want is already taken, in this case, it is important to have back up names.
Proofs required to register as a Private Limited Company?
There are two categories of proofs required to be submitted when you’re registering a company. One is identity proofs, and the other is registered office proof. Under identity proof, you will need –
- Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
- Scanned copy of Voter’s ID/Passport/Driver’s License
- Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
- Scanned passport-sized photograph specimen signature of directors.
Under registered office proof, one requires
- A copy of the electricity/phone/water bill
- NoC from the landlord in the case of rented spaces along with a copy of the notarised rental agreement
- A copy of the sale deed/property deed in case of owned property
Note: The registered office does not have to be a different space, it can be your residence too.