A business structure like a Private limited company is preferred by most businesses for its benefits like limited liability, reduced compliances, improved growth opportunities, and so on. The Companies Act 2013 governs the private limited company comprehensively. If you are looking for a Private limited company registration in Coimbatore, you are on the right page. Here you will come across legal requirements, procedures, and benefits relating to Private limited company registration.
Benefits of Registering As a Private Limited Company
Here are the frontline benefits of opting for Private limited company registration in Coimbatore.
A Separate Legal Identity
A private limited company adheres to a separate legal identity. The subscribers and shareholders of such a company aren’t exposed to unlimited liability.
The private limited company endorses the concept of perpetual existence. It implies that such a business structure will continue to remain in operation even if the key member(s) encounters a sudden demise or fails to cooperate.
Better Growth Opportunities
Opportunities for growth are inherently more for the private limited company. Such companies follow moderate compliances, which makes them an ideal contender for various financial aids offered via financial institutions and government schemes.
Prerequisites for Securing a Private Limited Company Registration in Coimbatore
Choosing a legal business structure like a private limited registration is a great decision. You must keep the following requirements in mind before you get involved with the process of Private limited company registration in Coimbatore.
- Minimum of two directors (maximum can be 15)
- No minimum paid-up capital is required as such
- Arrangement of documents like director’s address, MOA, AOA, firm’s address, DSC, DIN, etc
- Registered office in India
- Drafting of charter documents like MOA and AOA
The Detailed Process of Securing a Private Limited Company Registration in Coimbatore
Here is the step-by-step guide for securing private limited company registration in Coimbatore:
Step 1: Obtain DSC (Digital Signature)
Digital signature plays a vital role when it comes to signing digital documents. It is mandatory for all witnesses & subscribers listed in the MoA (Memorandum of Association) and AoA (Articles of Association). Applicants must secure class-3 DSC from MCA-recognized agencies to e-sign incorporation-related documents.
Step 2: Apply for DIN
DIN stands for Director Identification Number. It serves as a mandate for proposed directors of the firm. Here are some methods for obtaining DIN.
Option 1: Head to MCA and File form DIR 3. It is supposed to be filed by those who want to acquire a Directorship position in an existing company. This form requires key information about the proposed director such as an Aadhaar card, PAN, and address proof.
Option 2: The director of the new company can use an e-form – SPICe+ for this purpose. The said form can allow a maximum of three applicants (directors) to apply for DIN at once. This application criterion would remain unaltered even if the number of applicants is more than three. In such cases, the unregistered directors would be appointed post-incorporation.
Step 3: Name Approval
Following are the two options available to applicants for name validation from the Registrar of Companies.
Option 1: Name approval is the first step in the incorporation process. The e-form for the name validation is available on MCA’s portal by the name SPICe+. The launch of the SPICe+ form was the MCA’s attempt to simplify the incorporation formalities. There are two parts to this form, namely Part A and Part B. Part A deals with name reservation and the validation process. Two proposed names can be filled into the form for approval. Once the name gets MCA’s approval, it will remain reserved for 20 days and during this timeline, the applicant must complete the incorporation formalities.
Option 2: Use RUN services: RUN stands for Reserve Unique Names. This MCA-based service allows for name alternation for existing companies only. If your company is new, there is no point in using this service.
Note: Applicants Do Not Need To Secure DSC Or DIN To Serve Formalities For Name Reservation.
If the name application is rejected, the applicant can readdress the incorporation formalities without any additional expenses. However, subsequent failure to form approval would compel the applicant to follow the entire process again.
For resubmission of the SPICe+ form, an applicant can use the link called ‘name applied for’ or ‘application number’.
Step 4: Form SPICe+ (INC-32)
Once the name is approved, the applicant must proceed to cater to the rest of the formalities concerning the incorporation process. To do so, visit the portal’s dashboard and tap on the link concerning the approved name. The portal will redirect you to the next phase of the incorporation process by opening the SPICe+ part B form. This part offers the following services:
- Application concerning DIN allotment
- Application relating to PAN and TAN
- Application concerning EPFO registration
- Application relating to ESIC registration
- Application concerning Professional tax registration
- Application for current bank account opening
- Application regarding professional tax registration (for Maharastra-based firms only)
- Allotment of GSTIN, if required by the applicant.
The new SPICe+ e-form ensures real-time authentication of data feed by the applicant for a speedy and hassle-free process. The details entered by the applicant in both parts of the form will be filled automatically in the associated e-forms such as eMOA, eAOA, Agile-Pro, URC-1, and INC-9.
The applicant needs to download the PDF version of these forms and encloses their digital signature accordingly. A professional’s electronic signature is mandatory for the filing form INC-32.
The professional must render his/her consent to authenticate the legitimacy of the information enclosed in the form. The professional should be a certified official such as CS, CA, Cost accountant, and advocate
Private limited company registration in Coimbatore is not a complicated process as long as you adhere to the above procedure. However, the chance of application rejection is always on the higher side for the new applicant. Therefore, it is advisable to seek expert help if you want to incorporate your dream company in one go.
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