Ca in yelahanka

Dear Sir,

Here is some information regarding formation of a private limited company. If you want to incorporate it, I would advise you to contact your nearby Company Secretary in Practice (PCS). It is they who specialise in such works. If a PCS is not available, you can contact a nearby PCA.

A Private Limited Company is a Company limited by shares in which there can be maximum 50 shareholders, no invitation can be made to the public for subscripttion of shares or debentures, cannot make or accept deposits from Public and there are restriction on the transfer of shares. The liability of each shareholder is limited to the extent of the unpaid amount of the shares face value and the premium thereon in respect of the shares held by him. However, the liability of a Director / Manager of such a Company can at times be unlimited. The minimum number of shareholders is 2.

Private Limited Company has lesser number of compliances requirements. Therefore, generally where there is no requirement of raising of finances through a public issue and the ownership is intended to be closely held by limited number of persons, Private Limited Company is the best choice.

The minimum paid up capital at the time of incorporation of a private limited company has to be Indian Rupees 1,00,000 . There is no upper limit on having the authorized capital and the paid up capital. It can be increased any time, by payment of additional stamp duty and registration fee.

Formation of a Private Limited Company

Minimum requirements:

• Minimum 2 Shareholders

• Minimum 2 Directors

• The directors and shareholders can be same person

• Minimum Share Capital shall be Rs. 100,000 (INR One Lac)

• DIN (Director Identification Number) for all the Directors

• DSC (Digital Signature Certificate) for one of the Directors

Steps involved in formation of an Indian Private Limited Company

Step No.

Steps

Timeframe(Working days)

Processing

DSC

Documents required Self attested:

• Address proof
• Identity proof

DIN Approved DIN is a pre-requisite for incorporation process

Apply for DIN and get a provisional DIN

• •	Certification/Attestation of Director’s personal details Sending the same to the DIN Cell and getting it approve

Pre- Name Application Search

• •	The Promoters have to provide atleast 6 (Six) names in the order of priority. To make an online search of availability of names as desired by the Promoters

Application for Name Availability

• 6 names for the proposed Company

• Main Object Clause

To draft the Main Object Clause to be pursued by the Company after incorporation.

Representations before RoC on behalf of Promoters

Changes to be made in the Name application, if any, suggested by the RoC

Documents required

•	Printing of Altered Memorandum and Articles of Association (MOA / AOA)

Other Forms like:
• Form 32
• Form 18
• Form1
• Letter of Authority/PoA

Drafting the MOA & AOA and after getting it vetted by Promoters, sending it for printing. • Processing of eForms: Stamping of documents namely:

• MOA
• AOA
• Letter of Authority/PoA
• Form1

Final Process:

•	Filing all the above documents with the ROC, follow up with the ROC, making changes to the MOA / AOA/otherIncorporation documents as suggested by the ROC

• Online uploading of e-Forms
• Payment of Registration fees
• Collecting the Certificate of Incorporation

Regards,

Veeral Gandhi