Private limited company is a closely held company with two person required as shareholders but not exceeding 200. Further two persons are required as Directors of the Company which can be maximum extended to 15. The liability of the members of a Private Limited Company is limited to the amount of shares respectively held by them.

Advantages of Private limited company registration:

Limited risk to personal assets

A private limited company's Shareholders have limited liability. This means that as a shareholder, you will only be responsible for the company's liabilities to the degree of your contribution. Because the shareholders have no personal liability, they are not required to pay the company's liability out of their own assets at the time of wound up.

Raising Capital

Despite the fact that forming a PTC (Private Company) has compliance requirements, entrepreneurs choose it since it allows them to raise funds through shares via right issue, private placement, bonus issue except public issue.

Continue Existence

A company has 'perpetual succession,' which means that it will continue to exist until it is lawfully dissolved. A business, as a separate legal person, is unaffected by the death or termination of any of its members, and continues to exist regardless of membership changes.

What is the process to register a company?

The method for registering your company as a private limited company is extensive and entails several complications. Don't worry, our experts at Online Legal India can assist you with every stage of the private limited company registration process. You can take service and register your dream company.

Here are the steps to register your dream company

Obtain Digital Signature Certificate:

To file the forms for company creation, digital signatures are required. The registration is completed entirely online, and all forms require a digital signature. In the E-MOA e-AOA, subscriber sheet DSC of all the shareholders are required to be affixed. DSC must be obtained from government-approved certifying authorities.. You can also acquire your DSC online in only two days. Obtaining DSC costs vary depending on the certifying authority. You must receive a DSC classification of class 3.

Apply for DIN:

A director's DIN is an identification number. Anyone interested in becoming a corporate director must obtain it. Person proposed to becoming Director must have DIN. 

With effect from 23 February 2020, in case of new companies, DIN can be applied to the maximum of 3 within Incorporation form SPICe+ at a time. DIN can only be applied through SPICe+ form, and upto 3 directors can get DIN no. at the time of incorporation.

With filing SPICe+ form, DINs are issued to the proposed directors who do not have a DIN. Under this process of filing through SPICe+ (INC 32,Spice MOA, Spice AOA),. If the applicant wants to incorporate a Company with more than 3 same can be done once company get incorporated

Approval of Name:

To get the name approved, here are some steps you should follow:

Part-A of the SPICe+ Form is used to reserve the name: The Ministry of Corporate Affairs (MCA) has introduced the SPICe+ web service for company incorporation as of February 23, 2020, in an effort to make procedures easier for new and existing businesses. While reserving Unique Names for the Companies, Part-A of the SPICe+ form provides for 'name reservation' with two proposed names and one re-submission (RSUB).

If the name is rejected because it is too similar to an existing business, an LLP, or a trademark, or because it does not comply with the Companies (Incorporation Rules) 2014, the applicant must resubmit another SPICe+ form with the necessary fee. However, once the name is approved, it will be reserved for a period of 20 days within which the company must proceed for incorporation by filing Part-B of the SPICe+ form. 

Form SPICe+ (INC-32):

The MCA has introduced Form SPICe+ for the registration of new companies from 23 February 2020. The incorporation under Part-B of the SPICe+ form is also web based and streamlines the incorporation process of companies.

Upon the name approval, the applicant can click on the link of the approved name (available on the user’s dashboard) and continue to complete the incorporation. The Part-B of the new SPICe+ form enables the web based incorporation and serves the following purposes with the benefit of a single application:

• Application for allotment of DIN (Director Identification Number
• Reservation of company name
• Incorporation of a new company
• PAN and TAN Application (mandatory)
• EPFO registration (mandatory)
• ESIC registration (mandatory)
• Apply for Professional tax registration (only for Maharashtra, Karnataka, West Bengal)
• Application for opening a bank account for the company (mandatory)
• Allotment of GSTIN (Goods and Service Tax registration number) if applied for (optional)
• Registration of Shop and Establishment Act (Only for Delhi)

The new SPICe+ form facilitates web based entries and real time validation of data making incorporation a seamless and quick process. The details filled in Part-A and Part-B of SPICe+ will be automatically filled in the linked forms AGILE-PRO, e-AOA, e-MOA, INC-9 (as applicable).

All these forms have to be downloaded in PDF and digitally signed, and later submitted for incorporation purposes. Upon the filling of the SPICe+ form, the user has to also download the form SPICe+ in a PDF format and affix the DSC to digitally sign the form.

The digital signature of a professional is required to file Form INC-32. The professional must certify that all the information given in the form is correct. The professional can be Chartered Accountant, Company Secretary, Cost Accountant or advocate.

Now, all of these forms have been merged together in the SPICe+ form and RUN service is available only to change existing names. Only way out for incorporation of a Company is SPICe+ form. No ROC fees for Incorporation of Company up to 10 lac of authorised capital.

• E-MoA(INC-33) and E-AoA (INC-34)

E-MoA refers to an electronic Memorandum of Association and E-AoA is electronic Articles of Association. These forms have been introduced to simplify the process of company registration in India. Memorandum represents the charter of the company while articles of association contain the internal rules and regulations of the company. Both these forms must be digitally signed by subscribers to the Memorandum and Articles of Association.

•  PAN and TAN Application

Through this single form SPICe+, you must apply for the company's PAN and TAN. The system will auto-generate these forms after the submission of SPICe+ form. The Certificate of Incorporation of Private Limited Company is issued with the PAN as allotted by the Income Tax Department after approval of the SPICe+ Form. An email containing the Certificate of Incorporation, PAN and TAN will be sent by the MCA. The Income Tax Department will issue the PAN card.

If all the details in the form are duly filled in along with the required documents, MCA will approve the registration and a CIN (Corporate Identity Number) will be allocated. You can also track this CIN online on the MCA portal.

Conclusion

The whole process including approval of DIN, Name, and Incorporation takes around 10-15 working days. However, now-a-days registering a Company has become a fast process as all documents are dragged in a single application form with MCA. It is a big step towards e-governance and for businesses who are looking for expansion of operations. Online Legal India helps you throughout the process. The experts of Online Legal India are skilled in this field and have catered a lot of clients till now.