What is a Private Limited Company?
A private limited company is a company privately held for small businesses. This type of business entity limits owner liability to their shareholdings, the number of shareholders to 200, and restricts shareholders from publicly trading shares.
Steps for forming a Private Limited Company:
Step 1: Obtain Digital Signature Certificate (DSC)*
Step 2: Obtain DIN*(DIN3)
Step 3: Name Availability
Step 4: Form SPICE INC-32
Step 5: MOA( INC-33) and AOA ( INC-34)
Step 6: PAN and TAN Application
*For Name availability under RUN Web service, there is no prior requirement to obtain DSC and DIN . It can be done with account login on MCA portal.
Documents required for filing SPICe (INC-32)-
- An Affidavit on a Stamp Paper is to be given by all the subscribers of the Company to state their willingness to become the shareholders of the Company
- Proof of office address – Rental Agreement
- Copies of utility bills that are not older than two months
- Copy of approval in case the proposed name of the company contains any word(s) or expression(s) that require approval from central government
- If the proposed name is based on a registered trademark or is subject matter of an application pending for registration under the Trade Marks Act, then it is mandatory to attach the trademark registration certificate or trademark application copy
- NOC from the owner of the property
- In case of subscribers/ Director does not have a DIN, it is mandatory to attach, proof of identity and address proof of the subscribers
What is the Cost involved in Private Limited Company Registration?
DSC ₹ 1000
DIN ₹ 1000
Professional Fees ₹ 3799
Stamp Duty (approx) ₹ 2500
Notary Fees ₹ 500
Govt Fees (RUN, PAN, TAN) ₹ 1200
What is the Time required to register a company?
The whole process including approval of DIN, Name, and Incorporation takes around 7 working days. However, now-a-days registering a Company has become a fast process as all documents are dragged in a single application form with MCA. It is a big step towards e- governance and for businesses who are looking for expansion of operations.