A private limited company is one of the most common business structures because it offers the utmost flexibility and limited liability. Under limited liability, the company’s shareholders are only responsible for the company’s debts up to the amount they have invested or agreed to contribute. Furthermore, a registered private limited company can easily take loans from banks and NBFCs using its online marketplace and platforms compared to unregistered companies.
However, registering a private limited company involves many factors and legalities. The Ministry of Corporate Affairs sets and supervises the process, which requires submitting relevant documents and filling out an online form. This article will help you learn about the process and the documents required.
What is the process of private limited company registration
Here are the steps involved in a private limited company registration:
Obtain a Digital Signature Certificate
The first step is to obtain a Digital Signature Certificate (DSC) from recognised authorities. The DSC is needed to sign the private limited company registration form digitally. DSC is compulsory for all the subscribers and shareholders in the Articles of Association (AOA) and Memorandum of Association (MOA).
Apply for DIN
The next step is to apply for a Director Identification Number (DIN). A DIN is needed to legally identify a director of a private limited company during or after registration. You can either file DIR-3 or fill out the SPICe+ form to obtain a DIN.
Name approval
The next step is to visit the Ministry of Corporate Affairs’s web portal and fill out SPICe+ PART A. This form is needed to reserve the company name. You will need to enter two names here. Afterward, the Registrar of Companies (RoC) will analyse the application and reserve the company name.
Filling SPICe+ form
This form is compulsory for registering a private limited company. It must be completed to register the company, issue DIN, TAN, and PAN applications, and register ESIC and EPFO. You must pay the required fee to submit the form.
Certificate of Incorporation
Once you complete and submit the SPICe+ form, you will receive the Certificate of Incorporation (ROC). The ROC will issue the certificate if the form is complete and the information you entered is accurate.
PAN and TAN
When you fill out the SPICe+ form, your PAN and TAN applications are automatically submitted. Hence, after submitting the form, you will also receive the PAN and TAN via email from the Ministry of Corporate Affairs.
What are the documents required for private limited company registration
While filling out the SPICe+ form, you will need to provide some personal or company-related documents. Here are the documents required to register a private limited company:
Documents related to company promoters
Here are the KYC documents required of company promoters:
- PAN card
- Aadhaar card
- ID proof – Indian promoters can submit any of their Driving License, Passport, or Voter ID. Foreign promoters must submit their passport.
- Address proof – Utility bills such as electricity or telephone bills not older than 2 months.
- DIN and DSC
Documents related to the company
Here are the documents required of the company:
- Proof of business address
- copy of the rent agreement (if applicable)
- No objection certificate from the owners
Documents related to the company’s constitution
Here are the documents required of the company’s constitution:
- Name clause
- Registered office clause
- Object clause
- Liability clause
- Capital clause
- Nominee clause
- Articles of association
Forms and declarations
Apart from the above documents, some forms and declarations are also to be submitted:
- INC 9: For no conviction of any legal offence.
- INC 14: By a practising professional to showcase effective compliance by the company.
- DIR 2: For individuals giving consent for their appointment as company directors.
Conclusion
Registering a private limited company is beneficial as it gives the company a separate legal identity, making it eligible to own property and have legal rights in its own name. However, the registration process requires the submission of personal and company-related documents. Submitting all the right documents is important to avoid rejection of the registration application. Now that you know what documents you must submit, you can ensure a seamless business registration process as a private limited company.
