Steps Involved in Incorporation of a Private Limited Company in India

To set up a business in India, Private Limited Company is the most suitable constitution which is made online and hassle-free by the Ministry of Corporate Affairs (www.mca.gov.in) [MCA]. The quick online company incorporation is towards a further step to “ease of doing business in India” with a zero registration fee up to an Authorized Share capital of Rs.10 Lakhs. There are also varieties of avenues to raise funds for business purposes. The incorporation procedure is mandated under the provisions of the Indian Companies Act, 2013. Legaljini provides an online company registration service in India with its efficient and dedicated Professional team dealing in such subject matter. 

It only takes two days to get a private company incorporated in India.

For a hassle-free legal registration, here are the four easy steps:

#1: Obtain Digital signature certificate for Directors and Subscribers (only in case of individuals):

Obtaining a digital signature (Class 2) is the first and the foremost action one must initiate before setting up a private company. It has validity for up to 2 years.

Documents required to obtain the said signature by the Applicant is:

Ø  Passport size photograph

Ø  Residential address proof

Ø  Identity proof (PAN Card for Indians, Passport for Foreign nationals)

Legaljini has an in-house team who gets the digital signature generated for its customers within one day.

#2: Obtain DIN (Director Identification Number):

Director Identification Number (DIN) is a permanent unique identification number issued online by the MCA to an individual. This is a mandatory number for any individual to become a director in a Company incorporated under the provisions of the Indian Companies Act, 2013. Residential address proof and Identity proof duly self-attested is required to obtain a DIN.

#3: Reservation of Name:

A suitable and distinct name can be reserved by applying online under “RUN” application on the MCA website. This name is available for a period of 20 days from the date of name approval. Before applying for any name, resemblance of such name and trademark must be verified on the respective websites to avoid any rejection/delay in approval by the Registrar.

#4 Incorporation Certificate:

Upon reservation of name, one can file a form for incorporation of a private company. The form is very user-friendly and known as eSpice Form (Simplified Proforma for Incorporating Company Electronically).

The essential attributes of a private company are:

ü  Members limited up to 200

ü  Restriction on the transfer of shares

ü  Prohibition from accepting deposits from the public (individuals)

Documents which accompany the said form are:

Ø  Constitutional documents viz., Memorandum of Association – Objects of the Company; and Articles of Association – Internal Regulations of a Company.

Ø  Consent to act as Director in Form DIR-2 (by all the directors)

Ø  Address and Identity proof of directors and individual subscribers

Ø  Declaration in Form INC-9 by Subscribers and Directors

Ø  Utility Bill, Rent Agreement, Sale deed, etc. including NoC from the owner of the premises, as the case may be, as address proof for Company’s Registered office

The Registrar, upon his satisfaction on verification of the eSpice form and its supporting, shall issue a Certificate of Incorporation, which is conclusive evidence of registration of a Company under the provisions of the Indian Companies Act, 2013. It contains a 21-digit alphanumeric Corporate Identification Number (CIN). It also contain PAN issued by the Income Tax Department.

All the Promoters and Directors can now contribute effectively to the company's operation, and the capital (paid-up) amount shall be deposited in the company’s  CA (current account). The company is now ready to be accessed by the public.

Please note that Legaljini offers a comprehensive bouquet of legal services for a Private Limited company registration in India, under the Companies Act, 2019.