Private limited companies are the most popular form of corporate legal entities registered in India.
Registrations of Private limited companies are overseen by the state ROC office functioning under the ministry of corporate affairs of India.
On behalf of these jurisdictional Registrar of Companies, the private limited company registration process has been centrally managed by the Central Registration Center located at Manesar.
To get started, you need to have a minimum of two shareholders and two directors. One of the directors must be an Indian citizen and Indian resident. A natural person can be a shareholder and director.
In this article, we will discuss how to register a private limited company in India.
Applying For Private Limited Company Name
In the first step of the private limited company registration process, you are required to apply for a company name.
You can provide up to 2 names on priority for approval. In case of rejection, opportunity will be provided for re-submission.
Please remember, ROC will approve the name that has given highest priority if it’s available.
It’s not mandatory that you have to compulsorily give 2 alternative names for your private limited company. If you are 100% sure that the name of the company is available then you can also apply with one name.
In case the name is similar to a registered company or violates company laws, then your application may get rejected.
Your name can also get rejected because of trademark issues. Before applying, you need to check it online to know whether your desired name is available for registration or not.
You are not required to provide any kind of documents while applying for name approval of your private limited company.
However, if you have trademark registration, then a self attested copy of trademark registration certificate can be attached with the application.
Getting your desired name approved is a vital point in the whole process of private limited company registration.
Generally, the government will take 2-3 working days to give approval. After getting approval, your next step for private limited company registration will start.
Getting digital signature certificate (DSC)
After getting your private limited company name approved, you need to obtain a digital signature in the name of all directors.
Digital signature certificate (DSC) is required to sign memorandum of association, Article of association and registration documents. Signed documents are to be filed online with the ministry of corporate affairs for further processing.
Digital signature can be obtained from any authorised agent by submitting Permanent Account Number (PAN), Aadhaar and one photo along with the application form.
In addition to these documents, you are also required to verify your mobile number, email id and upload a video clip for your identification. The authorised agent will guide you in getting the DSC approved.
Applying for your Private Limited Company registration
With your name approval letter, now you are ready to follow the final step in the private limited company registration process.
In the final step, your Chartered Accountant or Company Secretary must have prepared the Memorandum of Association and Article of Association.
Memorandum of association or MOA will have your private limited company’s main objective, business that the company will undertake after registration, in addition to following things;
- Name of the registered entity
- Registered office address
- Authorised share capital
- Liability
- Information of the first shareholder and number of shares allotted to them.
Object clause of the Memorandum of association will indicate the business objectives for which you are forming your private limited company.
You cannot carry any other business if it’s not specified in the object clause of the MOA.
Article of Association or AOA is the by-laws. According to this document directors and other officers are required to perform their duties. This means, the Article of Association will specify the rules and regulations that the private limited company will follow while carrying on its business.
Along with all the rules and regulations, you are required to check who has been appointed as director of the company if it’s mentioned in it and details of shareholders at the end.
These two documents are vital for a private limited company registration. You must go through these documents before processing documents for incorporation.
In case of doubt or changes, you can ask your Chartered Accountant or CS to make necessary changes that are required for your business or else take their opinion to understand it better.
There are some more documents which are required based on the types of private limited company you register and place of registration. To understand it better we request you to speak to your Chartered Accountant or CS on this.
Along with e-MOA, e-AOA and incorporation forms, you are also required to file AGILE-PRO and INC-9 forms. All these forms are filled online and then downloaded to sign it using the respective DSC.
Along with these forms you are required to attach following documents;
- Passport size photo
- Id Proof (Driving License/Voter ID/Passport)
- Address Proof (Bank Statement/Mobile Bill/Telephone Bill/ Electricity Bill, any of these documents not older than 2 months)
- Director’s consent and particulars of director
With all these documents, your CA or CS will apply online for registration along with their certification on it.
If everything goes well, then within 3 to 5 working days you will get your incorporation certificate delivered to your e-mail Inbox.
After getting your certificate of incorporation, we suggest you appoint your first auditor and comply with all other things that are required by the Companies act 2013.
To know more, read our article on post compliance requirements for a private limited company and its advantages.
To register a private limited company, you require the help of a chartered accountant or Company Secretary in practice. We suggest you consult a chartered accountant or CS to help you in the entire process of company incorporation.
Frequently Asked Questions – FAQs
Which form a company should choose to file its annual income tax return?
A company incorporated in India is required to file income tax return on or before the due date of filing i.e. 31st October of the relevant assessment year. The income tax return form prescribed for a company is ITR-6.
ITR-6 is the only form prescribed for a company. Therefore, all the companies including private limited, public limited and one person company, are required to file ITR-6 on or before the due date of filing.
