A company is governed by the provisions of Companies Act, 2013 which came into effect from 1st April, 2014. Private Limited Company registration in India is done as per the rules mentioned in Companies (Incorporation) Rules, 2014. The minimum requirements for company registration are:
• at least 2 director, one of whom must be a resident of India as per the Income Act, 1961.
• at least 2 shareholders. The director and the shareholders can be the same person.
• paid-up share capital.
• Director Identification Number (DIN) for all directors.
• Digital Signature Certificate (DSC) for at least 2 directors.
How to Register a Private Limited Company in India
The incorporation process is as follows:
· Application for DIN and DSC: The first step of Pvt Ltd company registration in India is applying for the DIN of every director in form DIR-3. The form must be self attested. The form should be digitally signed by a whole time company secretary, chartered accountant or cost accountant. Similarly, DSC should be obtained by filing the DSC Application Form. The ID proof and address proof must be self attested and signed by a Gazetted Officer.
· Check Name availability: The second step is to check the availability of name. The promoters need to finalize 6 names and write them in the order of the preference. One can check name availability on MCA website.
· Application for Name reservation: Once the main object of the company is drafted and name availability is checked, an application must be made with the ROC for its reservation.
· Draft MOA and AOA: Memorandum of Association (MOA) and Articles of Association (AOA) are the most important documents of a company. They contain the rules and regulations with which a company is governed. Once a name is finalized, MOA and AOA must be drafted and signed by the subscribers.
· File Form INC-7 with ROC: The next step is to file e-forms with ROC. The first form is INC-7 which is filed to incorporate a company. The documents which must be submitted along with the INC-7 are MOA, AOA, declaration in Form INC-8, affidavit from subscribers to the MOA in Form INC-9, ID proof, address proof, Form INC-10 and PAN Card.
· File Form INC-22: Form INC-22 is filed with ROC to inform them about the registered office. Along with the form proof of address, permission to use or an NOC is submitted. The form must be certified by a whole-time CS/ CA/ CWA.
· File DIR-12: Form DIR-12 is filed with ROC to provide details regarding the appointment of directors and key managerial personnel (KMPs) of a company.
Once all the documents and forms are submitted online, promoters need to pay the prescribed fee and stamp duties. The ROC will then verify all the documents and if everything is as per the prescribed rules, it will issue the Certificate of Incorporation in soft-copy. Incorporation of a private company takes 20–25 business days if every process is completed on time.
Fastest method for incorporation through INC — 29
The Ministry of Corporate Affairs introduced a new procedure for fast company incorporation. This can be done by filing form INC 29 which is one cumulative form that replaces all the forms above. The disadvantage is that under this procedure only one Company name can be selected and in case the MCA has an objection to providing this name the form will get rejected. MCA just provides a 1 opportunity of resubmission.