According to The World Bank Data, it now takes an average of 18 men days to register a Private Limited Company in India. I will try to explain in detail the process of Pvt Ltd Company Registration to give you an overview of procedures are involved and where you can save some time and get your company registered in less than 10 days.
With a population of a whopping billion and around 20 thousand businesses being registered every month including Private Limited’s, Limited Liability Partnerships, One Person Companies, Normal Partnership Firms or even Sole proprietorships in the form of Goods and Services Tax Registrations our Government has been trying various thing to bring the startup chaos to calm by relaxing various hardships and addressing various issues. In recent years the process of registration of business has become easy and friendly bringing India’s EODB (Ease of Doing Business) Score to 63 an increase of 3.5% as compared to last year.
According to The World Bank Data, it now takes an average of 18 men days to register a Private Limited Company in India. The process of Pvt Ltd Company Registration to give you an overview of procedures are involved and where you can save some time and get your company registered in less than 10 days. Private Limited Company, unlike a Partnership, gives your Business a separate Legal identity which is different from its members which means the Company for all legal purposes will be treated as a distinct person and it can hold its own assets and liabilities, so the coming and going of members will not affect the longevity of the company. Also, the Liability clause is capped to the unpaid value of shares held by the members.
Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company registration is governed by the Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required. MCA has recently implemented major changes to the process and made it very simple to incorporate a company.
Shields from personal liability and protects from other risks and losses.
Attracts more customers
Procures bank credits and good investment from reliable investors with ease.
Offers liability protection to protect your company’s assets
Greater capital contribution and greater stability
Increases the potential to grow big and expand
Step 1: Reserve Company Name
Ministry has introduced something called RUN (Reserve Unique Name) which allows an applicant to apply for a company name and get it reserved in just a day.
Step 2: Apply for Class ii Digital Signature
To file for a Private Limited Registration the members and directors need to have a Class ii Digital Signature to eSign the forms. You can get your Digital signatures from certified vendors such as VSign, eMudhra, etc.
Step 3: Drafting Incorporation Documents
There are various documents such as Directors Declaration, Directors Affidavits, No Objection Certificates, Memorandum Of Association & Article Of Association which is required to be drafted to file for incorporation.
Step 4: Applying for Incorporation
Assuming your Name got approved, you can instantly apply for registration once your documents are ready. Since the incorporation forms have now been changed to integrated forms called SPICe32 which integrates Incorporation, PAN Application, TAN Application and GST Application in the same form. So depending on your requirement if you want GST registration with your company you can opt for the same or get it registered at a later point of time.
Step 5: Getting Certificate Of Registration
The eForms are processed in fast track mode by a central team. On approved a Certificate Of Incorporation will be issued by the Registrar. You can also choose not to preapprove your Private Limited Company Registration and apply for the name in the integrated SPICe32 form itself but we recommend you preapprove the name for saving time on resubmissions related to name in incorporation stage.
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