A private limited company is privately held for small business where owner’s liability is limited to their shareholder. They are prohibited trading shares publicly. A perpetual succession is possible when the owner and the company are two separate entities.
The basic steps for registering as private limited company is:
1. Getting (DSC) digital signature certificate – digital signature is compulsory for filing forms for company formation. The whole procedure is carried out online and is compulsory for all the subscribers, witnesses of MOA (memorandum of association) and AOA (articles of association). The DSC should be from a government recognized certifying authorities and should be of class3 category.
2. Obtain director identification number (DIN) – one DNI is maximum number to be a director in any number of companies. There are 3 ways of obtaining of DIN –
- Fill form DIR 3 (applicable for becoming director of an existing company). Documents required are identity proof i.e. Aadhaar card PAN and address proof. DIN can be applied under SPICe+ form for max three directors.
- Under SPICe+, DINs gets issued for proposed directors who don’t have a DIN yet with a maximum limit of 3 directors.
- If you opt for private limited company – registration with Yourworc, DINs are covered in the plan and there is no need to apply for DIN separately.
3. Name availability – there are following options available-
- Reserving the name through SPICe+ form. Part A of the SPICe+ form allows from “name reservation” with two proposed names and one re-submission (RSUB) while reserving unique name. If the name is rejected due to any complication we have to re-file the form. ONLY MCA ACCOUNT IS MANDATORY. DSC AND DIN IS REQUIRED FOR FILLING OF SPICe+ FORM FOR REGISTERING NAME.
- You can apply for proposed name along with application for incorporation by filling part-A and part-B of SPICe+ form together. In case of rejection of the application due to non-approval of the name they can re apply but this would be the last attempt given to the applicant. In case of failure of the submission then you will have to re-enter from the first step by filling SPICe form.
4. Form SPICe+ (INC-32)- this format was introduced from 23rd February 2020, under which part- of SPICe+ is web based and streamlines incorporation of the companies. It serves benefits in one single application making the process seamlessly easy;
- Allotment of DIN application
- Reservation of company name
- EPFO registration application (mandatory)
- ESIC registration application (mandatory)
- PAN and TAN application (mandatory)
- Incorporation of new company
- Professional tax registration application (only for citizens of Maharashtra)
- Allotment of Goods and services Tax Registration number (GSTN) *if applied
5. Electronic Memorandum of Association (e-MOA) and Electronic Articles of Association (e-AOA) – memorandum represents charter of the company and an article of association constitutes internal rules and regulations of the company. These are filled online linked through SPICe+ and signed digitally.
6.
- PAN &TAN application – after the SPICe form is approved, the certificate of incorporation of PLC is issued with the PAN as allotted by the Income Tax Department.
*A change has been implemented from 23rd February 2020, where the RUN web service for name availability would only be used for changing the name of the existing company.
Advantages of private limited company registration in India
- The shareholders have limited liability within a private limited company. The shareholders don’t possess personal liability so they pay for company’s debt using their personal assets.
- A private limited company has separate entity from the owner and is solely responsible for its assets, liabilities, debtors and creditors.
- It is more preferred by entrepreneurs to raise their funds through equity, expand and also limits liability. A private limited company registered under registrar of companies (ROC) id trusted more.
