THE LEGAL TODAY

Private Limited
Company Registration

In India, a corporate entity classified as a Private Limited Company is subject to the Companies Act of 2013. Small and medium-sized enterprises, as well as startups, frequently choose this type of corporate structure. A Private Limited Company is regarded as a distinct legal entity and has its own legal existence apart from its owners, or shareholders. This implies that the business may engage in transactions, hold property, and file or defend legal actions under its own name.

The ability to raise capital through the issuance of shares to venture capitalists and private investors, as well as other advantages, are some of the key characteristics of a Private Limited Company. Other advantages include perpetual existence regardless of changes in ownership, flexibility in ownership and share transfer, and limited liability protection for its shareholders. It can have as many shareholders as 200, but at least two directors are needed.

Prepare Digital Signature Certificate (DSC) and Director Identification Number (DIN)

Getting a DSC for the company’s proposed directors is the first step. To electronically sign the incorporation documents, you must have this. Afterwards, each director must apply for a DIN, which is a special identification number used by directors of Indian firms.

Prepare Digital Signature Certificate (DSC) and Director Identification Number (DIN)

Getting a DSC for the company’s proposed directors is the first step. To electronically sign the incorporation documents, you must have this. Afterwards, each director must apply for a DIN, which is a special identification number used by directors of Indian firms.

Prepare Digital Signature Certificate (DSC) and Director Identification Number (DIN)

Obtaining a DSC for the proposed business directors is the first step. In order to electronically sign the incorporation documents, this is required. After that, you have to apply for a DIN (director’s unique identification number), which is necessary for directors of Indian corporations.

File for Name Approval

Choose a unique and appropriate name for your company and submit it for approval to the Ministry of Corporate Affairs (MCA). The name should end with the words “Private Limited.” Once the name is approved, it remains reserved for 20 days.

Drafting of Memorandum
& Articles of Association

These are the company’s constitutional documents, which set forth its goals and guidelines.

File for Incorporation
(SPICe Form INC-32)

After receiving name approval, you can file the application for incorporation using the Simplified Performa for Incorporating Company Electronically (SPICe) Form INC-32. This form combines the application for DIN, name reservation, and incorporation.

Issue of Certificate
of Incorporation

The Certificate of Incorporation, which formally creates the company’s existence, will be issued by the Registrar of Companies once they are happy with the filed paperwork.

PAN and TAN Allotment

PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) are allotted automatically during the incorporation process.

Open a Bank Account & Obtain GST Registration

You are able to open a bank account in the name of the firm once you have the Certificate of Incorporation. In addition, you must register your business for GST if it anticipates having a higher turnover than the GST threshold.

That being said, the documents you've mentioned generally fall into the following categories

For Directors/Shareholders

Copy of PAN Card

The tax authorities provide people and businesses with a unique identifying number known as the Permanent Account Number (PAN). It is employed in a number of tax and financial-related transactions.

Address Proof

This can include documents like bank statements, mobile bills, and telephone bills. These are used to verify the residential address of the directors/shareholders.

Aadhar Card

In some countries like India, the Aadhar card serves as a biometric and demographic proof of identity.

Passport Size Photo

Passport-sized photographs are often required for official identification and documentation purposes.

For Registered Office

Ownership Proof

Documents like an electricity bill or property ownership deed are used to prove the ownership or occupancy of the location that will serve as the registered office of the company.

Utility Bill

Utility bills, such as gas bills and electricity bills, can further establish the authenticity of the registered office address.

NOC
(No Objection Certificate)

A No Objection Certificate may be required from the landlord or owner of the premises to grant permission for using the location as the registered office of the company.

Selecting a company name for the registration of a private limited company is an important stage since it establishes the identity and tone of your enterprise. These are some things to think about while choosing a name for your business.

Uniqueness and Trademark Search

Your company name should be unique and not infringe upon any existing trademarks or company names. Conduct a thorough search to ensure that the proposed name is available and not already registered by another entity.

Reflect Brand Identity

Your brand identity and values should be reflected in the prefix (ABC). Since it will be the first thing that people will associate with your organization, it should be in line with the main message of your enterprise.

Relevance to Business

The suffix (Technologies) should indicate the nature of your business. It’s a way to convey to customers and potential partners what your company is about.

Legal Requirements

Observe the legal guidelines established by the Ministry of Corporate Affairs (MCA). This involves putting “Private Limited” at the end of your company name, as required by Indian law.

Easy to Remember and Spell

Select a name that should be simple to spell and recall to the user. This will make it easier for customers to find you online and recommend your company to others.

Domain Availability

Having a corresponding domain name (website address) is crucial in the modern digital world. Verify if you may register the domain name that corresponds to your business name.

Future Expansion

Consider whether the name will still be suitable if your company diversifies or expands into new areas of business.

Avoid Generic Names

While being relevant to your business is important, overly generic names might make it difficult to stand out in a crowded market.

Check Social Media Handles

Verify if the name is accessible on the most popular social media networks. Having a consistent online presence across all platforms is beneficial.

Test with People

Get feedback from friends, family, and potential customers. Sometimes an outsider’s perspective can reveal issues you might have overlooked.

Longevity

Choose a name that will not go out of style too soon. Steer clear of fad or fashionable names that might not be popular in the long run.

Cultural Considerations

Make sure the name doesn’t have any unintentional bad connotations or misunderstandings in other languages and cultures if you wish to operate abroad.

Professional Image

The name should portray a professional and credible image to potential clients, investors, and partners.

Recall that a name is an essential component of your identity and branding once it has been decided upon. It’s best to take your time and make informed decisions up front rather than changing your company name later on, which can be difficult and may include legal proceedings. Seeking advice from lawyers or business consultants who are knowledgeable about the naming customs and company registration processes in your area may also be beneficial.

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