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How to start company?


Gaurav (CEO)     08 June 2018

Gaurav
CEO 
 11 likes  482 points

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Are you planning to start a private limited company? But you are completely confused about the rules and regulations applicable for incorporating it. This blog is your guide to register a private limited company in India.

Content

With the majority of the population being youth there are thousands of budding entrepreneurs in India. However only very few of them manages to bring their dreams into reality.   In the developing country like India, there is no shortage of innovative ideas and entrepreneurship skills.  What we lack are the capital and the adequate guidance. Every entrepreneur just desires to start a business and become the next bill gates. But we need to understand that opening a business and running a company successfully is not a one day job. Rather a lot of hard work and sweat is invested to make your business idea successful.

Most of the people start their company in a rush without proper planning and layout plan. Due to this they fail miserably and drop the idea of becoming an entrepreneur. In order to successfully incorporate, first of all, you need a business idea. After that, you are required to decide that whether you desire to work as the legal entity or not. If you desire to work as the legal entity you must choose the type of business structure you want to incorporate.

Have you opted to start a private limited company? First of all, we would like to congratulate you on this decision of yours. If you want to start your business on a small or medium scale private limited company is the idol choice for you. To start with let us understand the concept of the private limited company.

What is the private limited company?

The private limited company is a privately held small business with minimum 2 and maximum 200 members.  In this type of business structure the liability of the members to their share only and it restricts the shareholders from trading publicly.

Features of private limited company

Some of the features of the private limited company-

Limit on members liability

In the private limited company, the liability of members is limited to their share only. Thus the members cannot be held responsible personally for meetings the liabilities of the company.

Perpetual succession

The private limited company formed is a completely distinct identity from its members in the eyes of law.  Thus the life of the company never comes to end even when the life of members comes to end.

Number of directors

Only two directors are required to form the private limited company that makes it easier to form this form of company.

Separate legal identity

The legal identity of the company is completely distinct from its members. Thus a company can hold property in its name, Obtain trademark registration etc.

Documents required

In order to start the Private Limited Company following documents are required to be submitted to the registrar of companies- 

•    PAN Card Copy - (Self-attested)

•    ID Proof -Voter ID/ Driving License -(Self-attested)

•    Address Proof – Latest utility bill (not older than two months) like Mobile Bill/ Telephone Bill/ Electricity Bill/ Gas Bill or Bank Statement( Self-attested)

•    Passport size photographs

For Registered Address Proof:

If, Owned Premises:

Any latest utility bill i.e. Electricity bill/water bill/mobile bill in the name of the owner which should not be older than two months + NOC from the owner.

OR

If, Rented Premises:

Any latest utility bill i.e. Electricity bill/water bill/mobile bill in the name of the owner which should not be older than two months + NOC from the owner.

Procedure to start a private limited company

In order to incorporate a company in India, every person is required to follow the below-mentioned procedure-

Step 1: Obtaining Digital Signature Certificate (DSC):

Every director of the proposed private limited company is required to obtain a valid digital signature certificate. It is mandatory to obtain DSC in order to validate the documents filed electronically. The digital signature certificate should be acquired by only those agencies which are appointed by the controller of certification agencies (CCA).

Step- 2 Filing Forms electronically

Through this step, the applicant is required to file below mentioned electronic forms relating to various company registration procedures.

SPICE 32- Through this form, the details relating to incorporating company name, registered office address or notice of situation of office, PAN TAN details and notice for appointment of company directors, manager and secretary and also regarding the take and pay for their qualification shares are provided.

INC-33- Through this form, the Memorandum of association (MOA) of the company is filed. MOA is a document which defines the relationship of the shareholders with the company. It basically contains the objectives and powers of the company.

INC-34- In this form, the article of association of the company is filed. The article of association is documented containing the bye-laws which define the relationship of the company with outsiders. Information such as the total number of members, share capital, rules for a meeting of the company, voting power of members must be included in the Articles of Association.

Step-5- Certificate of incorporation

Once all the documents and forms are the field with the ministry of corporate affairs it will be scrutinized by the department. If the ministry is satisfied by the application and document submitted the MCA may grant the certificate of incorporation to the proposed company. Further, the applicant will receive a confirmation email regarding the application for incorporation of a new company, and the status of the form will get changed to Approved. Finally, the applicant will receive the certificate of incorporation.

I hope all your doubts are clear now regarding the registration of private limited company. In case you are still skeptic about it, feel free to get in touch with the experts at Registrationwala.


Attached File : 1599402 20180608172642 comapny registratiopnwala.jpg downloaded: 35 times



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