05/02/2019
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Company Registration Process
The private limited company registration process is completely online, so you don't even need to leave your home to get your entity registered within 14 working days. At Sinhoi Management, we are continuously available to help you understand how to register a private limited company. Company Registration in India can be done through Sinhoi Management in all major cities, including Hyderabad, Mumbai, and New Delhi, Chennai, Kolkata & all other Indian cities.
A detailed explanation of the procedure now follows, along with expected timelines and charges involved. We've also answered FAQs and suggested best practices for your application; however, if you still have questions, feel free to contact us at [email protected] and we'll get back to you as soon as we can.
Obtaining DSC and DIN
Only a single director needs to have a Class-2 Digital Signature Certificate (DSC), which is needed to sign electronic documents. To get one, all you need is a self-attested copy of the director's PAN card and address proof (latest utility bill, passport, driver's license of voter's ID). This can be completed in 2 days.
Application for Company Name
You need to now ensure that your name has not already been taken. This can be done by running a company name search. If you are disappointed that a preferred name is taken, do remember that the name of your company doesn't have to be your brand name. However, if you're going to register the brand name, also check if it has already been trademarked at http://www.ipindia.gov.in/. If it has been trademarked, you would need a no-objection certificate from its owner to have it approved as your company's name.
Secondly, you need to comply with the MCA guidelines. You can do so by ensuring that the name has a unique component and a descriptive component.
Company Registration Form & MOA & AOA Submission
Once you have your name, you need to get the Memorandum & Articles of Association approved. Here are all the other documents you'll need in order:
• Copy of Rental Agreement (along with NOC from owner)/Sale Deed
• Latest Utility Bill
• Affidavit from director and shareholders
• Copy of PAN card, Identity and Address Proof for DIN for 2 directors
• With these ready, you can submit the company registration form INC-32 (also known as Spice).
Company Incorporation Certificate
Once your MOA and AOA are approved, you’re almost there. You can now get your company incorporation certificate by submitting all the above-mentioned documents to the ROC. This can take anywhere from 48 hours to even two weeks. On arrival of the company incorporation certificate, your company is registered.
Apply for PAN & TAN & Bank Account
The moment your company is incorporated; you need to apply for a PAN & TAN with NSDL. It costs under Rs. 200, but will take up to three weeks to get done.
Note: Always be prepared for a longer wait, particularly if the Registrar of Companies (ROC) has a heavy workload at the time or your proposed company's name is rejected on first attempt.
The Sinhoi Management Company Registration package includes:
• DIN and DSC for two Directors
• Drafting of MOA & AOA
• Registration fees and stamp duty
• Company Incorporation Certificate
What is Company Registration?
Private Limited Company, the most popular legal structure for businesses, is an easy to form entity in India. All you need to do is register the directors with Ministry of Corporate Affairs (MCA), register the name of the company and submit the company incorporation documents, such as Memorandum of Association and Articles of Association. A private limited company has a minimum of two members and a maximum of 200 members. The entire process takes 10 to 15 days, depending on whether you have the documents in order.
Why Choose Private Limited Company Registration:
It is flexible and has limited liability.
A greater capital contribution and greater stability
The possibility to grow big and expand
What is Pvt Ltd Company and Features?
A private limited company is a limited liability entity incorporated under Companies Act, 2013. It has a minimum of two directors (with a maximum of 15). A natural person can be a director and as well as shareholder, where a corporate legal entity can only be a shareholder. In addition to that, foreign nationals, foreign corporate entities or NRIs are also allowed to be the Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.
Some of the unique features of a private limited company like the limited liability protection to shareholders, the ability to raise the equity funds, separate legal entity status and the perpetual existence make it one of the most recommended type of business entity for the millions of small and medium sized businesses that are owned by families or professionally managed.
Minimum Requirements for Private Limited Company Registration
Here is what is required of all new private limited companies, at the very least:
TWO DIRECTORS:
A private limited company must have at least two directors, at most, there can be 15 directors. Of the directors in the business, at least one must be a resident of India.
MINIMUM CAPITAL CONTRIBUTION:
There is no minimum capital requirement for a company. A company should have an authorised capital of at least Rs. 1 lakh.
REGISTERED OFFICE:
The registered office of a company does not have to be a commercial space. Even a rented home can be the registered office, so long as an NOC is obtained from the landlord.
Documents Required for Company Registration
IDENTITY AND ADDRESS PROOF
Identity and the address proof will be needed for all the directors and the shareholders of the company to be incorporated. In case of an Indian national, PAN card is mandatory. For the foreign nationals, apostilled or notarised copy of the passport has to be submitted mandatorily. All documents submitted should be valid. The residence proof documents like the bank statement or the electricity bill must be less than 2 months old.
REGISTERED OFFICE PROOF
All companies should have a registered office in India. To prove admittance to the registered office, a recent copy of electricity bill or the property tax receipt or water bill must be submitted. Along with the rental agreement, utility bill or the sale deed and a letter from the landlord with her/ his consent to use the office as a registered office of the company should be submitted.
Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs) Scanned copy of Voter’s ID/Passport/Driver’s License Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill Scanned passport-sized photograph Specimen signature (blank document with signature [directors only])
Note: Any one of the directors must self-attest the first three documents. In case of foreign nationals and NRIs, all the documents must be notarised (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).
DOCUMENTS REQUIRED FOR THE REGISTERED OFFICE
Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill Scanned copy of Notarized Rental Agreement in English Scanned copy of No-objection Certificate from property owner Scanned copy of Sale Deed/Property Deed in English (in case of owned property)
Note: Your registered office need not be a commercial space; it can be your residence, too.
Online Process of Company Registration with Sinhoi Management
5 WORKING DAYS
One director must apply for the Digital Signature Certificate (DSC), which is necessary to file the company registration documents. For this, you will only need to provide a few scanned documents and details; our representatives will fill the form and submit it online.
7 WORKING DAYS
As soon as we apply for the DSC, we will ask you to pick a name for your company, and send us some scanned documents regarding it and its directors. These will be used to file SPICe i.e. INC-32 and the Memorandum of Association (MOA) and Articles of Association (AOA). The Certificate of Incorporation will be approved at the end of this process.
2 WORKING DAYS
Every company needs a registered Permanent Account Number (PAN) and Tax Account Number (TAN). We will make the application online ourselves, but you will need to courier hard copies of the required documents yourself. The PAN and TAN will be couriered to your registered office address in 21 working days.
6 Essential Facts on Company Registration
1. What if I am a single founder?
A private limited company is an entity with two directors and two shareholders at the minimum. If you are a single shareholder, you can also bring in your mother, father or any other relative to be part of the limited company with just one single share.
2. Why do Start-Ups prefer private limited companies?
Simple. Start-ups set-up private limited companies so that they can raise venture capital funding and offer their best employees stock options. Without funding and stock options, it’s almost impossible to build and scale a large business. Banks and other lenders would also much rather lend to private limited companies, as compared to sole proprietors.
3. What is the procedure to register one?
Initially, we help you get a digital signature certificate (also known as DSC), which is nothing but an e-signature to help you complete the new company registration online. It usually takes two days to get the DSC from the time you submit the documents. Next, we apply for the Director Identification Number (also called a DIN). This typically takes one day. The third phase involves selection of a name for your company. Now, do remember that your company name need not be your brand name. For example, Naukri.com has been incorporated as Info Edge Technologies. Once done, we will prepare the Memorandum and Articles of Association and apply for the Certificate of Incorporation.
4. How many shareholders can be there in a private limited?
A private limited company must have at least two directors and shareholders, and can have a maximum of 15 directors and 200 shareholders.
5. How much do you need to invest?
Good news. You don’t need to invest any money upfront. Most entrepreneurs do bring computers and other necessities at the very beginning. These can be the assets of the company. Private limited companies in India do not need to have any paid-up capital (that is, they do not need to introduce any money into the company).
6. What regulatory requirements are placed on private limited company?
As private limited companies are not traded publicly, regulatory requirements placed on them are fewer than on public companies. For example, they need not disclose their books of accounts. Because of this advantage, they need only worry about the long term rather than face the music from their shareholders in case their results in a particular quarter are poor.
Advantages of a Private Limited Company
Limited Liability
Businesses often need to borrow money. In structures such as General Partnership, partners are personally liable for all the debt raised. So if it cannot be repaid by the business, the partners would have to sell their personal possessions to do so. In a private limited company, only the amount invested in starting the business would be lost; the directors’ personal property would be safe.
Separate Legal Entity
A Private Limited Company is legal entity and juristic person established under the Companies Act. Therefore, a company has a large range of legal capacities including that of opening of a bank account, hiring employees, taking on the equity or obtaining the licenses and more as an independent corporate entity. A member (Shareholders/Directors) of a company has no personal liability to the creditors of a company for company’s debts.
Investment-ready
Private limited companies easily accommodate equity funding as there is a clear distinction between shareholders and directors as well as limited liability. In fact, venture capitalists and private equity funds are unlikely to invest in any other structure. This is because LLPs would require them to become partners in the business, while an OPC can have only one shareholder. This feature also gives you the ability to hire top talent you may not be able to afford by merely paying a salary.
Easy Debt Access
A private limited company has more options for taking on debt than LLPs. Not only are bank loans easy to obtain (relative to OPCs and LLPs), the option of issuing debentures and convertible debentures are always available to it.
Borrowing Capacity
A Private Limited Company can raise the equity funds in India. The Companies can also issue equity shares, preference shares, debentures and accept the deposits with RBI permission. The Banks and Financial Institutions prefer to provide the funding to a company rather than the partnership firms or proprietary concerns.
Uninterrupted Existence
A Private Limited Company has ‘perpetual succession’, that means, it has an uninterrupted existence until it is legally dissolved. As a company is a separate legal person, it is unaffected by death or other the departure of any member and it continues to be in existence irrespective of the changes in ownership.
Easy Transferability
The ownership of a business can be very easily transferred in a company by transferring the shares. The signing, transfer and filing of share transfer form and the share certificates is adequate to transfer the ownership of a company. In a private limited company, the consent of other shareholders may be required to effect share transfers.
Owning Property
A Private Limited Company being an artificial person, can obtain, enjoy, own and alienate, property in its name. Property owned by a company may be building, machinery, intangible assets, land, residential property, factory, etc., No shareholder can stake a claim upon the property of the company – as long as the company is the going concern.
What are factors one should consider in selecting the company name?
The name of the company is very important. It is considered the first impression for the suppliers, buyers and the stakeholders. It must, therefore, be suggestive, relevant and attractive. There are various factors that one must keep in mind while naming the company.
IT MUST BE SHORT & SIMPLE:
The name must be concise and not be too long. People should be able to say it easily and they should be able to recollect your company’s name the first time they read it or hear it.
IT MUST BE MEANINGFUL:
The name of the company should be related to the business. It must fit the company’s branding.
IT MUST BE UNIQUE:
The name of the company mustn’t be the same or identical to an already existing company or a trademark. One must preferably avoid the plural version.
ADD SUFFIX:
The name of the company must end with the suffix “Private Ltd” in a case of a Private limited company and “LLP” in case of a limited liability partnership.
IT SHOULDN’T BE ILLEGAL / OFFENSIVE:
The name of the company shouldn’t be against the law. It shouldn’t be abusive or against customs and the beliefs of any religion.`
