How To Register A Company In India 2018

What is a Private Limited Company?

A private limited company is a company privately held for small businesses. This blazon of business organisation entity limits owner liability to their shareholdings, the number of shareholders to 200, and restricts shareholders from publicly trading shares.

What are the advantages of Private Limited Company Registration in Republic of india?

1. Limited gamble to personal avails – The shareholders of a private limited company accept limited liability. This means that as a shareholder you volition be liable to pay for company's liability only to the extent of the contribution made by yous. The shareholders practise not have any personal liability and hence need non pay for the company's liability out of their own assets.

2. Legal Entity – A PLC has a separate legal entity dissimilar from you. This means that the Visitor is responsible for the management of its assets and liabilities, debtors and creditors. Yous volition not be held responsible for the losses of the company. So, the creditors cannot continue against you to recover the money.

3. Raising Capital – Even though registering a PLC comes with compliance requirements, information technology is preferred by entrepreneurs as it helps them raise funds through equity, expand and at the same fourth dimension limits the liability.

four. Trustworthiness – Companies in Republic of india are registered with the Registrar of companies(ROC) under the Companies Act 2013. Anyone can bank check the details of the company through the Ministry building of Corporate Diplomacy (MCA) portal. Also, details of all the directors are provided while the formation of the company. Hence a PLC form of business structure is trusted more.

5. Continue Existence – A company has 'perpetual succession', i.due east. continue or uninterrupted being until it is legally dissolved. A company, being a separate legal person, is unaffected past the death or abeyance of any member but continues to be in existence irrespective of the changes in membership.

Different forms of company registration

At that place are other forms of company registration such equally

How to Register Private Limited Company:

Looking to register your company as a private express visitor? Registering your company as a private limited company is difficult every bit the procedure is complicated and involves many compliances. Do not fear as our experts can assistance you in every stride of the private limited company registration. Instead of reading through the unabridged registration process, yous can avail our expert service.

Step 1: Obtain Digital Signature Document (DSC)

Step 2: Obtain DIN

Footstep iii: Name Availability*

Step 4: Form SPICe+ INC-32

Step v: e-MOA and east-AOA

Step 6: PAN and TAN Application

* The RUN Web service before available for name availability will be available only for change in name of an existing company. The change is constructive from 23 February 2020.

Steps to register for Private Limited Company

Step ane: Obtain DSC (Digital Signature) Digital signatures are required to file the forms for company formation. The registration process is completely online and the forms crave a digital signature. DSC is mandatory for all subscribers and witnesses in the Memorandum of Association (MOA) and Articles of Association (AOA).

You must obtain the digital signature certificates from authorities recognized certifying regime. The list of such certified government can be accessed here. Or yous can go your DSC online in just two days from here. The toll of obtaining DSC varies depending upon the certifying authority. Yous must obtain class 3 category of DSC.

Step 2: Apply for DIN (Director Identification Number) DIN is an identification number for a manager. Information technology has to exist obtained by anyone who wants to exist a managing director in a company. One DIN is enough to be a director in whatever number of companies.

In that location are iii ways of obtaining DIN:

Choice 1: File grade DIR 3. The Form DIR-3 is applicative to a person who wants to become a director in an existing visitor. This form required bones details of the proposed director along with identity proof like PAN, Aadhaar Bill of fare, etc and address proof. With effect from 23 February 2020, in case of new companies, DIN can exist applied within SPICe+ class for up to three directors.

Option 2: With filing SPICe+, DINs gets issued to the proposed directors who exercise not have a DIN. Under this process of filing through SPICe+ (INC 32), a maximum of three directors can apply for DIN. If the applicant wants to contain Company with more than 3 Directors and more than three persons doesn't have DIN, in such a situation the applicant has to comprise a Company with 3 Directors and have to appoint new directors afterward after incorporation.

Choice 3: Click on the link & let a ClearTax skilful procure DIN for yous. If you get for Private Express Visitor – Registration with ClearTax, upwardly to 2 DINs are covered in the plan & there is no demand to employ for DIN separately.

Step 3: Name Approving

To become the name blessing, there are following options:

Option ane: Reserving the name via Part-A of SPICe+ Course: In an attempt to ease procedures for new likewise as existing companies,w.e.f 23 February 2020, the Ministry building of Corporate Diplomacy (MCA) has introduced SPICe+ web service for the incorporation of a company. Function-A of the SPICe+ form allows for 'name reservation' with two proposed names and one re-submission (RSUB) while reserving Unique Names for the Companies.

In case of rejection of the name due to any similarity of name with a registered company, an LLP or trademark or due to non-adherence of the Companies (Incorporation Rules) 2014, the bidder has to re-file another SPICe+ form with prescribed fee. However, after the approval of the name, it will be reserved for a catamenia of 20 days within which the visitor must go on for incorporation by filing Role-B of the SPICe+ class.

Delight notation that DSC and DIN shall non required for filling of SPICe+ form for reservation of name. But MCA Business relationship is mandatory.

Option two: Name approving by filing Part-A and Part-B of SPICe+ Class together: Yous can employ for the proposed proper noun along with the application for incorporation. Function-B of the SPICe+ enables applying for incorporation. Similar to the earlier SPICe course, SPICe+ also enables combined application for incorporation and name approval. That means the Role-A and Part-B of SPICe+ form tin can be submitted together. However, only 1 proper noun can exist applied to this grade.

In case of a combined application, in instance of rejection due to non-blessing of the name, the bidder will get a second chance of refilling the same SPICe+ form without any farther charges. It means you get two chances of filing the same form without any extra charge of paying Rs. thou/- both the times. The resubmission of the SPICe+ grade (both for standalone name approval and incorporation) can be made using the 'proper noun applied for' or 'awarding number' link available on the user's dashboard.

In case of failure to get the name approved in the second go, yous can file the SPICe form once more from scratch. This volition any day evidence to be cheaper than opting for the first choice. The whole procedure including proper noun approval and incorporation takes around 2-3 days

Pace iv: Course SPICe+ (INC-32) The MCA has introduced Class SPICe+ for the registration of new companies from 23 Feb 2020. The incorporation under Role-B of the SPICe+ form is likewise web based and streamlines the incorporation of companies.

Upon the proper name blessing, the applicant tin can click on the link of the approved name (available on the user'southward dashboard) and continue to complete the incorporation. The Part-B of the new SPICe+ form enables the web based incorporation and serves the following purposes with the benefit of a single application:

Awarding for allotment of DIN (Director Identification Number)
Reservation of company name
Incorporation of a new visitor
Awarding for PAN and TAN (mandatory)
Application for EPFO registration (mandatory)
Awarding for ESIC registration (mandatory)
Application for Professional tax registration (simply for Maharashtra)
Application for opening a banking company account for the visitor (mandatory)
Resource allotment of GSTN (Goods and Service Tax registration number) if practical for (optional)

The new SPICe+ form facilitates web based entries and real time validation of data making incorporation a seamless and quick process. The details filled in Part-A and Part-B of SPICe+ will be automatically filled in the linked forms AGILE-PRO, eAoA, eMoA, URC1, INC-nine (as applicative).

All these forms have to be downloaded in PDF and digitally signed, and afterwards submitted for incorporation purposes. Upon the filling of the SPICe+ form, the user has to also download the class SPICe+ in a PDF format and affix the DSC to digitally sign the form.

The digital signature of a professional is required to file Form INC-32. The professional must certify that all the information given in the class is correct. The professional tin be Chartered Accountant, Visitor Secretarial assistant, Cost Accountant or advocate.

Prior to May 2015, the registration of companies required the filling up of several documents, such as the DIR–3 for acquiring the DIN (Managing director Identification Number), INC-one for obtaining a proper name, INC–7 for registering the company with the Memorandum and Articles of Association, INC–22 for the registered office and finally, Course DIR-12 for the directors. With effect from January 2018, New Process of Proper name Approval "RUN" notified and e-form INC-1 omitted. INC-vii form omitted.

Now, all of these forms have been merged together in the SPICe+ class and RUN service is available only to change existing name. Only way out for incorporation of Company is SPICe+ form. No ROC fees for Incorporation of Visitor up to 10 lack of authorized uppercase.

Stride 5: east-MoA(INC-33) and e-AoA (INC-34) e-MoA refers to an electronic Memorandum of Association and eAoA is electronic Articles of Association. These forms have been introduced to simplify the process of company registration in Republic of india.

Memorandum represents the charter of the company while articles of association incorporate the internal rules and regulations of the visitor.

Earlier memorandum of association and articles of clan were required to exist filed physically. Just now these forms are filed online on MCA portal as a linked grade with SPICe+ (INC-32). Both these forms must be digitally signed by subscribers to the Memorandum and Articles of Clan.

Step half dozen: PAN and TAN Application Through this unmarried form SPICe+, you lot tin as well utilise for company'due south PAN and TAN. The organisation will auto-generate these forms after the submission of SPICe+ form. The Certificate of Incorporation of PLC is issued with the PAN equally allotted by the Income Revenue enhancement Department after approval of the SPICe+ Form. An email containing the Document of Incorporation, PAN and TAN will be sent by the MCA. The Income Tax Department volition outcome the PAN card.

If all the details in the class are duly filled in along with the required documents, MCA volition approve the registration and a CIN (Corporate Identity Number) will be allocated. You tin also track this CIN online on MCA portal.

Documents required for filing SPICe+ (INC-32)

The following documents must be filed with SPICe (INC-32) for a private limited company registration:

A. Where director and subscriber are Indian Nationals

An Affirmation on a Postage Paper is to be given by all the subscribers of the Company to state their willingness to get the shareholders of the Visitor
Proof of function accost – Rental Agreement or Ownership Deed such every bit Sale Human action
Copies of utility bills such as electricity neb, water pecker or gas neb not older than ii months
Copies of utility bills that are not older than two months
Copy of approving in case the proposed proper name of the company contains whatever word(south) or expression(due south) that require blessing from fundamental regime
If the proposed proper noun is based on a registered trademark or is subject affair of an application awaiting for registration under the Trade Marks Act, and so it is mandatory to adhere the trademark registration certificate or trademark application copy
NOC from the owner of the holding, if the registered function is on a rented/leased property.
In case of subscribers/ Director does not take a DIN, it is mandatory to attach, proof of identity and address proof of the subscribers

B.Where manager/subscriber is a foreign National

- Passport
- Address proof: It can be driving license, residence menu, bank argument, Government issued class of identification containing an accost

How ClearTax Helps in Private Limited Company Registration?

With ClearTax, y'all can found your individual express visitor seamlessly. Y'all tin can annals your Private Limited Visitor in only iv uncomplicated steps:

Step 1: Purchase the Plan

Purchase our Individual Limited Company (PLC) Registration plan . Y'all can even chat with our experts by entering your electronic mail, telephone number and request a callback. Our experts volition contact you and articulate all your queries.

Step 2: Upload the Documents on our Website

Upload the below-mentioned documents on our website to incorporate your company:

Passport size photos of directors
Address proof of directors
Photo ID proof of directors
Specimen signature
Self-declaration nearly your directorship in other companies
Rent agreement of your registered office
No objection document from the owner of the holding of the holding
Aadhaar carte du jour
PAN card

The company registration from ClearTax is completely online and thus, you can save time and money as you need not have to visit our office.

Pace 3: Document Verification past our Experts and Signature of Documents

Our experts volition verify the documents uploaded by you lot. You will need to adjure your signature on the documents.

Step iv: Our Experts will File Forms on the MCA portal to Incorporation your Company

Our experts volition file the below forms on behalf of you lot on the MCA portal –

Digital Signature Certificate (For two proposed directors) Awarding
Visitor Name Reservation
Filing of e-forms with ROC

After the visitor forms are filed on the MCA portal, the Registrar of Companies (ROC) and the respective departments will verify the forms submitted by our adept. The verification procedure takes around 10 days (discipline to departmental approval and reverts from the respective departments).

Our experts will follow up with the respective authorities till y'all receive the Incorporation Document. After the verification process is consummate, you will receive the Incorporation Document along with PAN and TAN in about x days.

What is the Toll involved in Individual Limited (Pvt Ltd) Company Registration?

The following is the government fees required for registration:

Plan amount (includes the below mentioned fees)

₹ 9999*

Postage Duty (approx)

₹ 2000

Govt Fees (RUN, PAN, TAN)

₹ 1200

Appurtenances and Services Tax @ 18%

₹ 684

* Prices shown to a higher place may vary. Delight click here to contact our experts for complete pricing details.

What is the Time required to annals a Private Express company?

The whole process including approval of DIN, Name, and Incorporation takes effectually 10 working days. However, now-a-days registering a Company has become a fast process every bit all documents are dragged in a unmarried awarding course with MCA. It is a large stride towards e- governance and for businesses who are looking for expansion of operations.

Frequently Asked Questions

What are the prerequisites to incorporate a Individual Limited Visitor?
The prerequisites for the incorporation of a private express company are that:
1. The number of members must be between 2-200.
2. There must be at to the lowest degree two directors and ii shareholders
3. Each director must accept a Directors Identification Number (DIN)
4. PAN card re-create of directors/shareholders and Passport re-create for NRI subscribers.
Can the individual company be incorporated with a residential address?

Yes. The company needs to provide address proof for incorporation. Only the Ministry of Corporate Affairs (MCA) allows a residential address to be used as the company's registered address. Thus any address can exist provided as the registered address.
What are MOA and AOA?

Memorandum of Association (MOA) is defined under department 2(56) of the Companies Human action 2013. It is the foundation on which the company is built. It defines the constitution, powers and objects of the visitor.
The Articles of Association (AOA) is defined under section two(five) of the Companies Act. It details all the rules and regulations relating to the direction of the company.
How is SPICe INC 32 different from SPICe+ INC 32?

While SPICe is an eform, SPICe+ is an integrated Web course offering 10 services by 3 Fundamental Govt Ministries & Departments. (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance) and I Country Government (Maharashtra), thereby saving every bit many procedures, time and toll for Starting a Business organization in India. SPICe+ is part of various initiatives and delivery of the Government of India towards Ease of Doing Business organisation (EODB). SPICe INC 32 was being filed for company incorporation prior to 15th Feb, 2020. Currently for incorporating all new companies, SPICe+ form is required to be filed on the MCA portal.
Is there a limit on the number of directors that can use the SPICe+ INC 32 for obtaining DIN?

For the incorporation of the company, a maximum of three directors can use the integrated class for filing awarding for allotment of DIN.
Are PAN and AADHAR mandatory for the subscribers to MOA and AOA?

No. The Companies (Incorporation) 3rd Amendment Rules dated 27th July 2016 has relaxed the mandatory attachment of proof of identity and residence in respect of a subscriber having a valid DIN.
Is it mandatory to file eMOA and eAOA along with SPICe+ INC 32?
Aye, information technology is mandatory to file eMOA and eAOA in the following circumstances:
1. individual subscribers are Indian nationals
2. If individuals subscribers are strange nationals, so they have a valid DIN and DSC and also submit proof of a valid business visa
3. non-individual subscribers based in India
How are PAN and TAN communicated to the user once SPICe INC 32 is accepted?

On credence of SPICe forms, the Certificate of Incorporation (COI) will be issued with valid PAN and TAN as allotted by the Income Tax department. An email with the COI as an attachment forth with PAN and TAN will be sent to the applicant. PAN and TAN in the email will be held valid equally the requirement for a laminated card for PAN has been done away with.