How To Register A Private Limited Company In India

At a time when major economies of the world are witnessing an economic slump, layoffs, cut in employee's salaries, etc, India seems to be performing well. Despite all negative media propaganda, India's economy is performing well in terms of tax collection, elimination of black money, export of agricultural products, software, highly talented professionals, goods and services, generation of new jobs, ease of doing business, etc. The government of India has allowed 100% FDI in several private sectors. That is why, business individuals from all over the world has been arriving India to start their business activities and earn handsome revenues every day, week, month, and year.

Although, the process to register a private limited company in India is simple and straightforward, but can be quite stressful for unfamiliar individuals. If you want to register your business as a private limited company and do business legally, here are the essential steps that you need to follow:

1. Application For Digital Signature Certificate

It is mandatory to obtain a Digital Signature Certificate from the authorized Digital Signature Certificate issuing authority with the minimum one director to sign the E-forms related to incorporation like form INC.1 and various other documents. Once you get the digital signature certificate, you can move to the next step.

2. Application For DIN Or Director Identification Number

According to the present companies act 2013, you can register only 4 types of companies with the Ministry of Corporate Affairs (MCA)-

• Private Limited Company,
• Public Limited Company,
• One person company and
• Registration Under section 8 of the Companies Act, 2013 (Non-Profit Organization)

First of all, choose a company format which is suitable for your business. After that, you need to start the process of taking the Director identification number or DIN. Actually, it's a unique number issued by the ministry of corporate affairs to all new or existing directors. You can apply for DIN online through the MCA portal by using e-form DIR-3. It should be signed by both applicant and professional like Chartered Accountant or CS or CMA. You need to sign the form digitally.

3. Application For The Availability Of Name For Your Company

It is the most important process of Private Limited company Registration. Just check for the availability of company name. You can give one name along with 6 other alternative names. Just make sure that the name selected by you reflects the main business activities and objectives of your company. It should not resemble with any existing company. You can check the company name availability at MCA Site. Once you submit your application successfully, it takes 3 days to process your application. If you get approval, the name is reserved for your company for a period of 60 days. If you don't take this name within 60 days, it may be given to someone else on their request.

Sometimes, MCA doesn't approve your application and sent it back to you for re-submission. Just repeat the same process to get your company registered with the desired name.

4. Drafting of MOA and AOA

Once your name is approved, you need to draft MOA (Memorandum Of Association for company registration) and AOA (Article of Association). If you can't do it, take assistance from chartered accountants or CS. You are required to specify your name, address and occupation in own handwriting and signature on the last page or subscription page of the Memorandum and article of association before applying for company registration. The photo of all each subscriber should also be affixed in the MOA and AOA.

5. Application For Company Registration:

This is the last step of the company registration process wherein you have to upload the following forms to MCA site one by one. All forms should be digitally signed by a director. Forms line DIR-12 and INC-22 need to be certified by a professional.

• INC7
• INC-22 and
• DIR-22

While uploading the forms, you need to pay the required fee. Once you complete this, your company is registered successfully.

Estimated Cost Involved In The Process Of Company Registration

Final Words:

By following the above-mentioned process, you can get your company registered in India and start your business activities. If you still Wondering How to register a private limited company, get in touch with us at Businessventuresindia.com. We will help you to complete all formalities related to the company and commence your business easily in India.

Source:
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