A private limited company is the most popular type of corporation in India and is registered under the regulation and compliance guidelines of the Ministry of Corporate Affairs. This type of business entity limits the owner’s liability to its shares, limits the number of shareholders to 200, and limits shareholder participation in publicly traded shares.
The process for private limited company registration is a bit complex, but it can be done using these simple steps:
Step 1: Obtain a Digital Signature Certificate (DSC)
The first step in private limited company registration is to get a unique DSC for yourself. The board of directors or managing director of the partnership must have their own DSC, as required when filing electronic forms and filling tax returns. It acts as a type of verification or identification mark that enables these personnel to authenticate documents sent to the government.
The digital signature certificate is usually issued by a certification authority and is usually valid for one to two years. All Subscribers and Directors of the Private Limited Company must obtain DSCs. The shareholders must submit their MoAs and AoAs on a regular basis, and these require authentication by DSC, while Directors require DSC to obtain DINs themselves.
Step 2: Procure the Director Identification Number (DIN)
The second step of pvt ltd company registration is the Director Identification Number, popularly known as DIN, is a unique identification number given by the Ministry of Corporate Affairs to directors of companies. The number is valid for life unless withdrawn, submitted, or removed by the MCA. All the directors of the pvt ltd company must acquire a unique DIN in order to register its company. Therefore, it is safe to say that as a managing director of a legally registered company .
Step 3: Reservation of Name and registration on MCA portal
Before a company can apply for incorporation, it must have a unique name for itself. To do this, the Directors must submit an application to reserve a specific name for the Private limited company through the e-Form INC-1. Make sure the appropriate form has been completed and the necessary processing fees have been paid. A single application can contain a maximum of 6 different names sorted by preference and why the name is suitable for the company. Then government officials check the availability of each name and approves or denies the request accordingly.
To apply for pvt ltd company registration, the SPICe+ form must be completed and submitted to the MCA portal. In order to complete the SPICe+ form and submit documents, the director of the company must register on the MCA portal. Once registered, the director can log in and gain access to MCA portal services, including electronic form submission and viewing of public documents.
Step 4: Certificate of Incorporation
As soon as the pvt ltd company registration application has been completed and sent along with the required documents, the Registrar of Companies will review the application and, after reviewing the application, issue the Certificate of Incorporation of the Company.
Once a company receives the certificate of incorporation, it becomes a legal entity and can operate as a private limited company in India. Therefore, directors, administrators and promoters can start their work from this moment on.
