How to Register a Private Limited Company in India?
Out of all the available forms of the doing business, starting with private company incorporation is the most suitable and comfortable option. A private company can be said as the mix of LLP and corporate features. A private company is a legal entity, which is separate from the company. It can hold /sell/buy the property in its own name, also the directors of the company owe a limited liability towards the shareholders in case of the financial distress.
Opening up a private company suits to the all type of business like trading, Manufacturing or wholesale or marketing or retail or E-commerce, your own people are in the business, assets management is easy and safe, compliance, as compared to a Public company, is very less.
What is a Private Company?
A private company as defined in the companies act 2013, body corporate, having a separate identity from the members it constitutes of, having a common seal and can have property in its name. A private company must contain minimum of 2 directors and 2 shareholders and the two can be the same. Maximum shareholders limit is 200. The maximum directors can be 15 directors in a Private company. The director should have attained the age of 18 years; the directors can be both Indian citizens as well as foreigners.
Now the capital requirement has also been relaxed, now there is no minimum capital requirement hence you can open a company with 0 (Zero) capital also However, practically companies are being opened with at least 1 Lakh paid up capital. A private company registration is done pursuant to the applicable rules and regulation of The Companies Act 2013.
What will be the Procedure to register a private company in India?
a) DSC- Firstly secure the Digital Signature certificate for the directors and such other authorized person who is required to act as the signing authorities on behalf of the company.
b) DIN: Thereafter apply for DIN (Director Identification Number) for the directors through the application on MCA portal.
c) Name availability: Apply for the name availability for the proposed company.
d) Incorporation: One need to apply in Form SPICE-32 i.e. the application to incorporate the company.
e) MOA/AOA: Prepare the memorandum of Association and Article of Association basis the company business activity in line with the object to be achieved through the incorporation of the private company.
f) PAN and TAN: It can be applied along with the application form SPICE-32.
What are the requirements to register in the Startup India Program?
For a startup to register in the Startup India program, the following are the requirements:
The Eligibility Criteria for Startups are as given below:
1. The company should not have exceeded the maximum age for the company of 7 years.
2. The Startup business model potential: It must have a scalable business and should be unique or of such nature which is for the advancement of the society or community at large and shall create the employment for the public at large.
3. Who can apply? The following can apply in startup India program:
• Private limited company or
• Registered as a partnership firm or
• A limited liability partnership can apply under the startup India program,
4. The Annual turnover must not exceed 25 Cr.
NOTE: - In cases where the company/ an entity which has availed the benefits of startup plan and is covered under startup plan completed or exceeds 7 years or the annual turnover 25 Cr whichever is earlier will cease to be startup and all the benefits shall be taken back.
The expert Team of Enterslice (all CA/CS/Lawyers) can handle your end to end process. Starting with Name approval of the company, to secure a certificate of registration.
