A private limited company is a company incorporated under the Companies Act, 2013 or any other previous company laws. Since the word “limited’ is used, it is evident that the owners liabilities are limited to a certain extent in a private limited company. This, along with the other fundraising opportunities, collectively form the reason behind why people are opting for pvt ltd company registration online. This article focuses on the procedure for incorporation of company in detail.
Procedure for incorporation of company
As per the company laws of India, the Ministry of Corporate Affairs (MCA) governs all corporate affairs, including governing the companies and their registration in INdia. To create an ease of doing business in India, the MCA provides for an online procedure for incorporation of company. Persons wanting to incorporate a company in India need to submit the documents and other information in the prescribed format on the MCA portal. Below is a step by step guide on the procedure for incorporation of company.
Steps in incorporation of a company
Step 1: Acquire DIN for all Directors
Director’s Identification Number (DIN) is a unique identification number mandatory to be acquired for all persons desirous of being a director in any company in India. A person can only have one DIN associated to their profile, no matter the number of companies they are a Director for. Besides, you can easily acquire DIN by filing an application on the MCA portal.
Step 2: Obtain Digital Signature Certificate (DSC)
The online forms included in the procedure for incorporation of a company need to be verified by the proposed directors before submission to the MCA. Hence, having a DSC of at least one director is mandatory to move ahead with the incorporation of private limited company.
Step 3: Name Reservation
Once you have the DIN and DSC, you can start with the actual procedure of incorporation of company. You can start the procedure for the incorporation of a company. Firstly, you need to reserve a unique name company. You can reserve company name through the Spice+ Part A or by submitting the RUN form. You get one shot of re-submission in case the registrar declines your request.
Step 4: Incorporation Related Documents
Here, you need to prepare the documents required for company registration such as the MOA and AOA of the company, address proof, etc.
Step 5: Filling out the incorporation form
The incorporation form is the spice form for company incorporation. In this step, you need to fill out all the details of the proposed company in this form. You need to submit this and the documents to the Registrar of company of the state of your registered office.
Step 6: Pay the fees
After submitting the incorporation documents and form along with the MOA and AOA, you need to pay the applicable fees for company registration. This fee is on the basis of the authorised share capital of the company. Apart from the government fees, you also need to pay the stamp duty charges. These stamp duty charges are on the basis of the state of company incorporation. LegalWiz.in quotes are inclusive of all charges, and are as follows:
Business Package starting from INR. 7,999
- All expenses & Government fee
- 2 Director Identification Numbers (DIN)
- 2 Class III Digital Signatures
- MOA and AOA Drafting
- Name approval with SPICe+
- PAN and TAN Number with Certificate of Incorporation
- The additional cost of INR. 2,000/- per class III DSC in case of more than 2 applicants
Executive Package Starting from INR. 10,999
- All inclusions of the Business Package
- GST Registration
- MSME Registration
- INC-20A filing
- First Auditor and Bank Account opening Resolutions
- Employment Offer Letter, Contract & Employment Appointment Letter
- Website and Disclaimer Policy
Premium Package Starting from INR. 36,999
- All inclusions of the Business Package
- Accounting for up to 250 entries in the entire FY
- Annual compliance filing with MCA for a year
- ADT-1 filing for the first year
- ITR filing for the first year
- GST Return filing for 12 months (Upto 100 invoices per month)
- DIR-3 KYC for 2 DIN holders
Step 7: Issue of COI
The COI or the certificate of incorporation means the end of the procedure for company incorporation. After submission of the fees, the registrar and officials assigned, go through the documents and information you provided. Upon clearance of information, they issue the Certificate of Incorporation, which contains the unique CIN (Corporate Identification Number) of the company. This certificate is the legal proof of the incorporation of a company as per the laws of India.
Also Read: Is it allowed to run multiple brands under one company?
Step 8: Apply for company’s PAN and TAN
After incorporation, the company gets status of a body corporate. Hence, it becomes a legal person. As a result, it becomes mandatory for a company to have its separate PAN and TAN. PAN stands for the Permanent Account Number and TAN stands for the Tax Deduction and Collection Account Number. Besides, you can easily apply for the PAN and TAN to the Income Tax Department.
Step 9: Open Current Account for company
The bank accounts for legal entities such as companies are ‘current accounts’. Having a separate bank account for a company post the procedure for incorporation of a company is important. The reason being, it makes it easier to keep a track of the financial transactions of the company.
As soon as you get the certificate of incorporation, the company can commence its business activity. However, there might also be certain post registration compliance that a company needs to follow such as obtaining appropriate licenses. The procedure for incorporation of a company takes 2 to 4 weeks to complete. Further, choosing the appropriate business activities might also get difficult. Hence, it is always advisable to get in touch with certified professionals who can help you in company incorporation process.