According to the Companies Act 2013 read with the Companies Incorporation Rules, 2014, it is necessary to incorporate a private limited company with a minimum of two shareholders along with two directors (they can be the same person), w.e.f 23 Feb 2020. The (MCA) Ministry’ of Corporate Affairs has launched recently (Incorporation Forms) SPICE+ and AGILE-PRO to turn down the procedure, time, and cost for the incorporation of a new company. It has become quite simple to incorporate a private limited company.
How to Incorporate a Private Limited Company?
Step 1- Search for the Appropriate Name of the Proposed Company
The first step towards incorporate a Private limited company is that one must have a new name in mind, which must not be similar to the name of any existing registered company or having a similar registered trademark. One can apply for two names simultaneously for a company through incorporation form, i.e. SPICE+.
Step 2- Apply for the name reservation
The next step to incorporate a private limited company is to reserve the name of the proposed company in part-A of (SPICe+) form. In this form, choose the business activity and file for two proposed names. If CRC (Central Registration Centre) will reject the proposed name, then one can file again with two new names within a specified time limit from the date of rejection of 15 days.
Step 3- Apply for the DSC
The following step is to apply for Digital Signature Certificate (DSC), which will be used as the signatures for the forms by proposed members and proposed directors, respectively. Procure Digital Signature Certificate for both proposed director and member, in case both are different.
Step 4. Fill a Form (SPICe+)
Once the name gets reserved, it will be valid for 20 days from the date of approval. And within 20 days one has to fill-up the form and upload it online on the registration portal. SPICe+ is the advanced form combined with 8 forms in one. BY this proposed company can apply for at once for the following:
- Name reservation
- Incorporation
- Apply for DIN (Directors Identification Number)
- TAN (Tax Deduction Account Number)
- PAN (Permanent Account Number)
- EPFO (Employees Provident Fund)
- ESIC (Employees State Insurance)
- GSTIN (Goods and Services Tax Identification Number)
The part-B of SPICe + will contain all the detail related to incorporate a Private limited company like a total number of directors and members, paid-up capital, authorized share capital, company registered address detail, details of directors and member, number of share hold by members, required attachments for proof. After that, draft the MOA (memorandum of association) and AOA (Article of Association) of the proposed company. After that, please fill form required for EPFO and ESIC registration with detail and then fill the AGILE form for procuring GSTIN. After filling these entire attached signatures, you should upload it on the MCA website.
Step 5- Grant of Certificate of Incorporation
Once a file is submitted in on the MCA portal, it will be scrutinized by the officer if the application form is properly applied. Then the certificate of incorporation will be granted, if not then MCA officer will raise the query for an additional information or documents for the incorporation process.
Read our article:All you need to Know about Private Limited Company
Documents Required to Incorporate a Private Limited Company
- Address Proof of Registered office such as Lease Deed or Rent agreement and (NOC) Non-Objection Certificate (in case ownership of the property) or Ownership document
- Copy of the utility bills which must not be older than 2 months.
- Identity Proof and the residential address proof of the subscribers. Directors PAN Card and Aadhar Card both. (The PAN Card is important in case of person is a resident of India)
- The proposed Directors must have a DIN at the time of filing the application proof of identities such as Voter ID card, Passport or Driving Licence
- Residential Proof of proposed Directors such as Bank passbook, Electricity Bill, Telephone Bill or Mobile bill is required.
- Consent from Directors in form DIR-2 is required.
- Passport size photograph of proposed directors (only in .jpg format and max. size is 100kb)
- Proof of the appointment of Authorized Signatory for GSTN (letter of Authorization, copy of a resolution passed by Managing Committee or acceptance letter)
- Specimen Signature of Authorized Signatory
Conclusion
According to section 2 (68) of Companies Act, 2013[1] Private limited company means incorporated company having paid-up share capital as may be specified, and also Restricts the right to transfer its shares, except in case of OPC, limits the number of its member to 200. Provided that when 2 or more persons hold one or more shares in a company jointly, they shall, for the purpose of this clause, be treated as a single member. It is important to incorporate a Private Limited Company. CorpBiz shall be at your disposal to assist you in any form of Company establishments and its compliances. We shall be happy to serve you well!
Read our article:Steps for Private Limited Company Incorporation In India
