Registering a private limited company in India is a relatively straightforward process, but it does require some knowledge of the legal requirements and procedures involved. A private limited company is a popular business structure in India, as it provides several benefits such as limited liability, separate legal entity, and easier access to funding. In this article, we will discuss the steps required to register private limited company india.
Step 1: Obtain Digital Signature Certificate (DSC)
The first step in registering a private limited company in India is to obtain a Digital Signature Certificate (DSC). This is a digital signature that is used to sign electronic documents and filings. It is necessary for all the directors and shareholders of the company to obtain a DSC. The DSC can be obtained from certifying authorities such as the Ministry of Corporate Affairs (MCA) or private agencies authorized by the MCA.
Step 2: Obtain Director Identification Number (DIN)
The next step is to obtain a Director Identification Number (DIN) for all the directors of the company. This is a unique identification number that is assigned by the MCA. It is mandatory for all directors to have a DIN. The DIN can be obtained by filing an application with the MCA.
Step 3: Name approval
The next step is to obtain name approval for the proposed company. The name must be unique and should not be similar to the name of any other company. The name should also comply with the naming guidelines provided by the MCA. The name approval can be obtained by filing an application with the MCA.
Step 4: Drafting the Memorandum of Association (MOA) and Articles of Association (AOA)
The Memorandum of Association (MOA) and Articles of Association (AOA) are the legal documents that define the scope of the company’s activities, its objectives, and the rules and regulations governing its operations. The MOA and AOA must be drafted in accordance with the Companies Act, 2013. These documents can be drafted by a professional or a company secretary.
Step 5: Filing the Incorporation Application
After obtaining the DSC, DIN, name approval, and drafting the MOA and AOA, the next step is to file the incorporation application with the Registrar of Companies (ROC). The application must include the following documents:
- Form SPICe (Simplified Proforma for Incorporating Company Electronically)
- MOA and AOA
- Identity proof and address proof of all directors and shareholders
- Proof of registered office address
- PAN card of the company
Once the application is filed, the ROC will review the documents and if everything is in order, the certificate of incorporation will be issued. The certificate of incorporation is a legal document that confirms the formation of the company.
Step 6: Obtaining the Permanent Account Number (PAN) and Tax Account Number (TAN)
After obtaining the certificate of incorporation, the next step is to apply for the Permanent Account Number (PAN) and Tax Account Number (TAN) for the company. The PAN is a unique identification number assigned to the company for tax purposes, while the TAN is a number assigned for the purpose of deducting and remitting tax on behalf of the company. These numbers can be obtained from the Income Tax Department.
Step 7: Registering for Goods and Services Tax (GST)
The Goods and Services Tax (GST) is an indirect tax that has replaced several indirect taxes in India. It is a value-added tax that is levied on the supply of goods and services. The GST is designed to be a comprehensive tax that covers all stages of the supply chain, from the manufacturer to the consumer. If a private limited company’s annual turnover is expected to exceed a certain threshold, it is mandatory to register for the GST. The threshold limit for GST registration is Rs. 40 lakhs for most businesses, while for some special category states, the limit is Rs. 20 lakhs.
The registration for GST can be done online through the GST portal. The process involves providing details such as the PAN number, bank account details, and other relevant information about the company. Once the registration is completed, the company will be assigned a unique GST Identification Number (GSTIN).Registering for the GST is important as it is a legal requirement, and failure to register can result in penalties and legal consequences. Additionally, GST registration can help the company to avail various benefits such as input tax credit, which can help to reduce the tax liability.
Conclusion
In conclusion, registering a private limited company in India involves obtaining a Digital Signature Certificate, Director Identification Number, name approval, drafting the Memorandum of Association and Articles of Association, filing the incorporation application with the Registrar of Companies, obtaining the Permanent Account Number and Tax Account Number, and registering for the Goods and Services Tax if required. It is important to ensure that all the legal requirements and procedures are followed correctly to avoid any delays or legal issues in the future. Seeking the assistance of a professional or a company secretary can be helpful in ensuring that the process is completed smoothly and accurately. Once the private limited company is registered, it can enjoy the benefits of limited liability, separate legal entity, and easier access to funding, which can help it grow and prosper in the long run