Incorporation of a Private Limited Company

how to register a company name in indiaOne of the most widely used types of commercial entities in India is the private limited company. Limited liability for members, ease of maintenance, better flexibility when growing, and easier access to bank loans, private equity, etc. are all benefits of private limited companies. This blog post examines the procedures needed to establish a private limited company.

Basic requirements

A Private Limited Company must be an association of two or more people for a legitimate purpose in order to be incorporated. If the Registrar registers, the certificate of registration is not conclusive for this reason and the registration itself may be cancelled by the Central Government initiating necessary measures if the purpose, i.e., if any of the objects, is unlawful.

Obtaining Director Identification Number (DIN) & Digital Signature

The Director Identification Number (DIN) for the proposed Directors in the Private Limited Company and the Digital Signature for one of the Directors are required in order to register a Private Limited Company. A request for the prospective Private Limited Company’s name must be made once the aforementioned documents have been received for the people who will serve as its directors.

Applying for the name

To give the Registrar flexibility in determining if the name is available, the firm’s promoters should choose one or more suitable names for the private limited company in order of preference. The phrase “Private Limited” must appear at the conclusion of the company name. The name shouldn’t be offensive or the same as the name of an LLP or corporation that already exists. Additionally, the name must not be one that is against the “Emblems and names Act, 1950.” The Registrar will assess the submission and grant approval after receiving the appropriate names on the designated form. Getting name clearance for a Private Limited Company typically takes 3-5 working days.

Filing for Incorporation of Private Limited Company

Following name approval, the following papers must be sent to the Registrar along with the application and the required fees:

  • Declaration from Directors Memorandum of Association Articles of Association, if any
  • The Directors’ Affidavits
  • a statement confirming compliance with the Act’s requirements and the rules it outlines. An advocate of the Supreme Court or High Court, an attorney or pleader with the authority to appear before the High Court, a secretary, a chartered accountant who practises full-time in India and is involved in the formation of a company, or a person listed in the Articles as a Director, Manager, or Secretary of the Company must sign this declaration.

A notice detailing the location of the company’s registered office must also be provided by the company, in addition to the aforementioned documents, within 15 days after registration or during the filing of the incorporation paperwork.

Subscribing to the Private Limited Company

Signing names and purchasing shares of the private limited company at incorporation constitutes subscribing to the private limited company. According to the Companies Act of 2013, each subscriber must sign the memorandum in the presence of one witness after providing his address, description, and occupation. When a corporation has shares, the subscribers to the memorandum must take at least one share apiece and make it clear how many and what kind of shares they have purchased. The Articles of Association must also be signed in a similar manner. It is necessary to properly stamp and date both the Memorandum and the Articles.

Certificate of Incorporation of Private Limited Company

The Registrar of Companies will provide a certificate stating that the company is incorporated following the registration of the previously specified documents and payment of the required fees. The company becomes a separate legal entity from the incorporators as of the date of incorporation stated in the certificate.

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