Private limited corporations are the corporate structure of choice for many organizations, both new and established, when it comes to carrying out day-to-day operations and other business-related tasks. The Corporations Act of 2013 is the piece of legislation that governs private limited companies, and it is administered by the Ministry of Corporate Affairs (MCA). Since a private limited company is an independent legal entity in its own right, there is a clear separation between the company and its owners. A private limited corporation is able to engage into contracts and can also possess assets of its own because it has a strong legal personality and can act independently of its shareholders. On the other hand, the shareholders of the corporation are granted limited liability, the extent of which is directly related to the number of shares that each shareholder owns.
Registering a Private Limited Company in India entails the Following Steps:
In India, private limited company registration as a legal entity is the initial and most important stage in the process of creating a private company. It is not until after the registration that the firm receives a clean and respectable structure for its business operations. By registering the company, not only will the operation of the firm run smoothly, but also any potential legal problems that may crop up in the near or distant future will be avoided. The act of registering the company would also raise the company’s standing in the eyes of potential clients, which would ultimately result in the addition of more credibility to the company.
Conditions that must be met before registering a private company in India are as follows:
To incorporate a private company requires its own unique collection of documents and procedures, just like forming any other kind of corporation does.
Members
- Although a Private Limited corporation must have at least two members, the total number of members may not exceed 200 at any given time.
- In accordance with the directives of the MCA, the Directors ought to be in possession of a Director Identification Number (DIN).
- It is required that at least one of the directors resides in India. This is a mandatory requirement.
Name of the Company:
The name of the company needs to be appropriate, and the phrase “Private Limited Company” needs to be added to the end of the name. Following the selection of a name for the firm, the same must be presented to the RoC for the purpose of receiving permission. It is essential to keep in mind that the name of the firm should not be identical to the name of any other company, nor should it exhibit any resemblance to the name of any other company.
AOA & MOA:
It is time to put the finishing touches on the Articles of Association and the Memorandum of Association.
Office of Registration:
After the registration has been completed, the location of the company’s registered office needs to be communicated to the RoC.
Documents Required:
- It is of the utmost essential that the owner of the company has all of the legal paperwork at their disposal.
- In order to validate the legitimacy of the papers, having a Digital Signature Certificate (DSC) is of the utmost significance.
- It is required that the directors present some form of identification, such as a PAN card or a passport that is still valid.
- Documentation showing your current address, such as an Aadhar card or ration card, is necessary.
- In order to provide proof of residence, you are need to present either bank statements, utility bills, or telephone bills.
- If the business is housed in rented premises, a copy of the lease agreement as well as a letter of consent from the building’s owner must be provided.
- It is required that a copy of the sale document be provided if the business is established on the proprietor’s own property.
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