PROCEDURE OF COMPANY FORMATION PRIVATE LIMITED COMPANY
1. Minimum Members:
For starting a Private Limited Company, there should be at least a minimum of 2 members and a maximum of 200 members. The maximum number of members to 200 has been raised to 200 from 50 in the new Companies Act, 2013. The members can be appointed as the Directors of the Company.
2. Minimum Capital:
In order to incorporate a Private Limited Company, a minimum of Rs. 1,00,000/- authorized capital and paid up capital has to be infused.
Steps in registering your Private Limited Company:
Step 1: Apply for DSC and DIN
DSC stands for Digital Signature Certificate- obtain DSC for two Directors. DIN-Director Identification Number- a unique eight digit number has to be obtained for one time, valid for entire lifetime of the Director.
Documents required for Applying DSC and DIN:
- PAN card copy with self attestation – ID PROOF.
- Voter id copy or Driving license copy with Self attestation – ADDRESS PROOF.
- PAN card copy with self attestation- ID proof.
- Voter id or driving license or passport copy or Aadhar card copy with self attestation- Address proof.
Step 2: Name Reservation:
Application for Reservation of Company name- A name plays an important role in Company incorporation process. The MCA has laid Naming guidelines for choosing proper name for your company.
- A Company has two parts in his name- Prefix and Suffix.
- Prefix which is the first part of company name must be unique and should not be common.
- Suffix contains the business part of your Company. Suffix should reflect the business nature of your company. For e.g. Infosys Technologies Private Limited. Here Infosys is nothing but merging of two words- Information and Systems and suffix is Technologies, which reflects the business of the Company.
- The Registrar of Companies will not approve any undesirable names for the company.
- Form Inc-1 has to be filed for application for reserving Company name. Once the name is approved it is valid for up-to sixty (60) days from the date of application.
Step 3: Submitting Final forms along with MOA and AOA:
- After applying and obtaining name for your company, the net step would be drafting MOA- Memorandum of Association and AOA- Articles of Association. MOA and AOA forms the life blood of your company. MOA contains the main business object that company is going to carry now and in mere future, AOA contain the internal rules and regulations of the Company.
- Form INC-7 and Form DIR-3 has to be submitted for incorporating your company.
- Attachments required for Form INC-7
- Memorandum of Association.
- Articles of Association.
- Form IN-10 with notarization.
- Form INC-9 printed on stamp paper and notarized.
- Form INC-8 Power of attorney given to the Practicing Company Secretary or Chartered Accountant for signing on Forms for your Incorporation. Should be printed on stamp paper.
- PAN card copy of both the subscribers to the MOA & AOA.
- Address proof copy of both the subscribers to the MOA & AOA.
- Attachment required for Form DIR-3:
- Form Dir-2- Consent to act as Directors of the Company.
- Form INC-10- Specimen signature copy of both the Directors with Notarization.
- Post Incorporation Filing:
- Once the Certificate of Incorporation has been issued by the Registrar of Companies, the Company has to file Form INC-21 for Registered office address proof, within 30 days from the date of incorporation.
- A Private Limited Company has to appoint an Auditor for his company within thirty (30) days from the date of its incorporation.
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