Do you want to start your own business? Starting a business is both exhilarating and terrifying, but it can also be perplexing. There is a lot to think about and plan before starting your own business. Before you begin on your own, you must first determine what form of entity you will be. You can register your firm as a sole proprietorship if you want to own it totally by yourself. You can even register it as a partnership if you choose. However, if you want to separate your personal obligation from that of the company, you should form a private limited company.
How much you pay in taxes, how much paperwork you have to perform, and how much personal liability you have to deal with all depends on the type of business structure you pick.
We’ll help you comprehend the Private Limited Company Registration In India process in this article.
Firstly have a little look at what is a private limited company.
Let’s Dive in!
What is a Private limited company?
A PLC (private limited company) is a small corporation that is privately held. The owner’s responsibility is limited to the shareholdings, the number of shareholders is limited to 50, and shareholders are prohibited from openly selling their shares.
A private limited company might be of two types:
- The members’ responsibility is limited to the amount payable on the shares they possess in a private limited corporation limited by shares.
- Members’ responsibility in a private limited company by guarantee is limited to the amount they agreed to undertake at the time of winding up.
Registration Procedure OF Private limited company
The process of forming a business may be divided into 6 steps. –
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Obtaining a Digital Signature Certificate
Because registration is done online, the first step is to obtain a digital signature certificate. You can obtain the certificate by completing the appropriate form on the MCA website.
A digital signature certificate is necessary for every company director. It is also necessary of the subscribers and witnesses to the memorandum of association and articles of association.
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Fill out an application for acquiring Director’s Identification Number (DIN)
Each director is granted a unique number called a director’s identity number (DIN). Everyone who aspires to be a corporate director must complete it. You just need one DIN to be a Director in many organizations.
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Approval of a Name
There are two ways to have your name approved:
- You can apply for the suggested name using the INC- 32 (Incorporating Company) form, but this form can only be used for one name. You must be assured of the proposed name and fulfill name availability rules, as well as existing trademarks, to avoid rejection.
- Before submitting INC-32, you can file Form INC-1, which allows you to propose up to six names, and then enter the SRN of the authorized INC-1 into INC-32. Filing through INC-32 is a considerably faster procedure than filing through INC-1. The entire process, from name approval to incorporation, takes around 2–3 days. If your desired name is difficult to get because of the existence of corporations with identical names, you should file Form INC-1 rather than INC- 32.
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INC-32 iform
The Ministry of Company Affairs has introduced the INC-32 iform Form. It is a simple proforma for electronically forming a corporation. It achieves the following objectives with the ease of a single application:
- DIN allocation application (Director Identification Number)
- The firm’s name is being held in reserve.
- The start-up of a new company
Prior to May 2015, acquiring a DIN (Director Identification Number), INC-1 for obtaining a name, INC–7 for establishing the business with the Memorandum and Articles of Association, INC–22 for the registered office, and Form DIR-12 for the directors needed the completion of various paperwork. All of these forms have now been combined into a single document.
You’ll need a professional’s digital signature to file Form INC-32. The expert must certify the accuracy of all of the information on the form. You can engage a Chartered Accountant, a Company Secretary, a Cost Accountant, or another professional.
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INC-33 and INC-34 are two different types of INCs.
INC- 33 stands for electronic Memorandum of Association, whereas INC- 34 stands for electronic Articles of Association. These forms were designed to make the process of registering a company in India more straightforward.
The memorandum represents the company’s charter, whereas the articles of association include the company’s internal rules and regulations.
Previously, memorandums of association and articles of incorporation had to be delivered in person. These forms, however, are now filed on the MCA site as a linked form with INC-32. Both the Memorandum and Articles of Association must be digitally signed by subscribers.
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Application for PAN and TAN
You can also apply for your company’s PAN and TAN using this one form INC- 32, which includes forms 49A for PAN and 49B for TAN. Following the submission of the INC- 32 form, the system will generate these forms automatically. It’s as easy as downloading it, signing it with a digital signature, and sending both forms to the MCA website.
If all of the data in the form is accurately filled out, together with the relevant documentation, MCA will authorize the registration and issue a CIN (Corporate Identity Number). This CIN may also be looked upon on the MCA website.
If a PLC’s MoA (Memorandum of Association) and AoA (Articles of Association) have more than 7 subscribers, the following documents must be completed.
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Wrapping up
A firm must register in order to be considered a legal entity. In India, no company may be a legal entity until it is registered with the Registrar of Companies. Company registration aids in the development of brand value and goodwill, as well as the expansion of the firm. As you can see, the procedure of registering a private company in India online is rather straightforward. It may be completed in four simple steps.
Taxwink is a Pvt ltd company registration service provider in Jaipur, India. to help businesses achieve their goals and objectives.
