Establishing a business is a crucial phase for a businessman. In addition to launching his business and products into the market, he has to comply with several legal requirements. Business owners search to start a business without much legal hassle for incorporating the company. They also take the help of professionals for registering their private limited company. However, it is generally costly to take the professionals’ help, and not every businessman can afford the same.

Nevertheless, the business owner can also register his private limited company conveniently in just four steps. It will ensure a flawless start to their company in terms of the legal part. Read on to know how to register a private limited company online conveniently.

Step 1: Obtain Digital Signature Certificate

How To Get Digital Signature Certificate?

The first step is to procure DSC (Digital Signature Certificate) of the individuals involved in the incorporation of the company. The requirement of DSC arises while filling e-forms on the MCA portal. DSC is issued by the Certifying Authority of India in a token form. Notably, it is only valid for 1-2 years.

The individuals involved in the company formation are Directors and subscribers of the proposed company. The proposed directors need to procure DIN by making an online application. The Subscribers are the stakeholders and the promoters of the company. The subscribers need to file MOA and AOA online by affixing their digital signature certificate.

See also  Common Business Loan Terminology That You Need To Know

Documents Required for Digital Signature Certificate

  • Applicant’s Passport size photograph
  • Self-attested Address proof of the applicants
  • Self-attested PAN card of the applicant

Step 2: Procure DIN – Director Identification Number

Director Identification Number is an eight-digit number assigned by MCA (Ministry of Corporate Affairs) to the individuals applying for allotment of DIN. This number is allotted for a lifetime by the Ministry unless the applicant withdraws it. The Directors of the company have to obtain the number and inform the authority while incorporating a private limited company. Hence, obtaining DIN is mandatory for all the directors of any company. Notably, DIN is allotted to a specific person, and even if the individual is a director to more than two companies, he requires only one DIN. One DIN can work in more than one companies.

Documents required for Obtaining DIN

  • Applicant’s Passport size photograph
  • Self-attested Address proof of the applicants
  • Self-attested PAN card of the applicant

Step 3: Reservation of Company Name

The name of the proposed company should be reserved before making an application to MCA for the incorporation of the Pvt. Ltd. Company. An application for Reservation of Name of the company shall be made by submitting e-form INC- A along with the required fees. The applicant may provide a maximum of 6 names in the preferential order. Notably, he also needs to provide the significance of the proposed names.

See also  How To Apply For Mudra Loan?

The appointed professional from the authority will perform a search on the availability of the name. It is worth mentioning that the registrar enjoys 100% discretion for the approval of the proposed company’s name.

The following are the general practices that are adhered to:

Get Instant Business Loan

  • The name of the company should be easy to spell and remember.
  • It should simple and short.
  • The name shall provide a distinct identity to the company.
  • It should not contain something that opposes the public policy.
  • The name should not be similar or identical to any other company.

As said earlier, the application for the name can be made only with six names, out of which, the registrar will approve any one name. He can also ask you to provide additional names with remarks. After the approval of the application, the registrar shall reserve the name for 60 days. The promoters have to make an application for incorporation of the company within the same 60 days. Upon failing on this, the reserved name shall lapse. After that, a fresh application shall be made.

Step 4: Certificate of Incorporation

After reserving the name of the proposed company, the next and last step is to make the application for issuance of Certificate of Incorporation. The application of SPICe (Simplified Proforma for Incorporating Company Electronically) has to be submitted as well via online.

See also  How Can Late Payment Of Dues Affect CIBIL Report?

Drafting MoA & AoA

MoA (Memorandum of Association) and AoA (Articles of Association) are charter documents for a Pvt. Ltd. Company. MoA of the company consists of the scope of the operations of the company by listing the main objectives and activities of the company. AoA talks about the ways by which the operations and administration of a company will be carried on.

What Is The Difference Between PAN, VAT, TIN, TAN, DSC, & DIN?

Documents Required along with the Application

  • Electricity bill and NOC from the owner of the registered office of the company, if premises are rented
  • Rental agreement and rent receipts
  • DIR – 2 form – Consent to act as a Director
  • Affidavit and declaration by the subscribers and directors
  • Self-attested identity proof of the first subscribers and directors

The application has to be submitted along with the requisite govt. fees and stamp duty on the concerned portal. The application for the proposed company PAN and TAN can also be processed of the same application. After reviewing and verifying the application, the certificate of incorporation will be issued in electronic form. The Certificate of Incorporation along with Permanent Account Number, will be issued.

Start your Business

On receipt of the certificate, the Private Limited Company will come into existence legally. The promoters and directors can commence operations and business activities.

Want to read the latest posts on social media? Then follow us on Facebook, Twitter, and LinkedIn!