Starting your own business by forming a Private Limited Company (Pvt Ltd) in India is an excellent choice due to its credibility, limited liability, and ability to attract investments. Here’s a step-by-step guide to help you with the incorporation process.
Key Features of a Private Limited Company
- Limited Liability: Shareholders' liability is limited to the amount unpaid on their shares.
- Separate Legal Entity: The company is a distinct legal entity.
- Minimum Requirements:
- At least 2 directors and 2 shareholders (can be the same individuals).
- One director must be an Indian resident.
- Authorized and paid-up capital of at least ₹1,00,000 (no minimum requirement now, but generally applicable).
Steps to Incorporate a Private Limited Company
Obtain Digital Signature Certificates (DSC):
- All proposed directors must obtain a DSC to file electronic forms.
- Apply for a DSC through certifying authorities (like eMudhra, NSDL).
Apply for Director Identification Number (DIN):
- Directors must have a DIN. You can apply through the SPICe+ form (discussed below).
Choose a Unique Company Name:
- Check name availability on the Ministry of Corporate Affairs (MCA) portal.
- The name must comply with Companies Act, 2013 guidelines and not infringe on trademarks.
Draft the Memorandum and Articles of Association (MOA & AOA):
- MOA: Defines the company’s objectives and scope of operations.
- AOA: Lays out the internal rules and management guidelines.
Fill and Submit the SPICe+ Form:
- SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) is the integrated form for company incorporation.
- Accessible on the MCA portal.
- It includes the application for incorporation, DIN, PAN, TAN, GSTIN, and ESIC/EPFO registration.
Pay the Registration Fees:
- Fees depend on the authorized capital of the company.
Verification and Approval:
- The Registrar of Companies (ROC) verifies the application and documents.
- Upon approval, the Certificate of Incorporation (COI) is issued, which includes the company’s Corporate Identity Number (CIN).
PAN and TAN:
- The company will receive its Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) with the COI.
Documents Required
For Directors and Shareholders:
- PAN card (mandatory for Indian nationals).
- Proof of identity (Aadhaar, passport, voter ID, or driving license).
- Address proof (bank statement, utility bill not older than 2 months).
For Registered Office:
- Proof of address (electricity bill, property tax receipt, rent agreement, or sale deed).
- No Objection Certificate (NOC) from the property owner.
Company Documents:
- MOA and AOA.
- Declaration by directors and shareholders in prescribed formats.
Timeline for Registration
- The process usually takes 7–15 business days, depending on the completeness of documents and approvals.
Costs Involved
- Government fees (varies with authorized capital).
- Professional fees for drafting MOA/AOA and filing (if using a consultant or CA).
- DSC and DIN application costs.
Post-Incorporation Compliance
- Open a corporate bank account.
- Maintain statutory registers.
- File annual returns and financial statements with the ROC.
- Obtain applicable licenses or registrations (e.g., GST).
