A Private Limited Company is a separate legal entity in the eyes of law formed by two or more persons, having a separate existence from its Owners (commonly known as Shareholders or Members) with a blend of Limited Liability of members and ability to hold assets and operate the business in its own name with an additional advantage of enjoying good credibility before the financial institutions. Due to this credibility feature, it’s easier for a Private Limited company to raise funds from financial institutions which will be a lag in the case of Limited Liability Partnership.
For a new company registration online, minimum two persons are required who will be the Shareholders as well as Directors of the company and a simplified process prescribed under the Companies Act, 2013 is to be followed. It must also be noted that where it is desired that the two persons who will become shareholders shall not be appointed as Directors of the proposed company then two more individuals shall be required for the incorporation of Private Limited Company.
Step by Step procedure for New Company Registration Online
Although there are not many changes to new company registration online process, yet with the introduction of new SPICe and AGILE Pro forms on 23rd February 2020, it is now mandatory to apply for PF, ESIC, Bank Account and Professional Tax (in case of Maharashtra) with incorporation and GST is optional.
Furthermore, the incorporation process has been slightly changed and following steps should be undertaken to incorporate the company:-
Step 1: An application for reserving the Name shall be made to Ministry of Corporate Affairs (herein referred to as ‘MCA’) for which maximum 2 names can be proposed in one application. It should be noted that the Names so proposed shall be approved as per the MCA Rules.
Step 2: After reservation of Name in Step-2, an application for obtaining Digital Signature Certificates (DSC) for all the Shareholders and Directors will be made.
Step 3: Meanwhile, draft declarations and other documents DIR2, INC9, NOC and so on along with Memorandum of Association (MOA) and Articles of Association (AOA) and on being finalised, the same shall be signed by the Shareholders and Directors.
Step 4: At last, application for company registration in India shall be filed with MCA in SPICe+ and AGILE Pro which are comprehensive forms for Company Registration, PAN and TAN Allotment and registration under EPFO, ESIC, Opening of Bank Account and Professional Tax (in case of Maharashtra). Application for GSTIN may also be made using the same application form.
Step 5: Relevant fee and stamp duty as per your state of Registered Office needs to be paid at the time of filing application. Also, it needs to be digitally signed by a CA/CS in practise.
Step 6: Certificate of Incorporation (COI) will be issued by MCA and company gets incorporated.
Step 7: Registration under PF, ESIC, Professional Tax, GST and Bank Account normally takes 10-15 working days after incorporation.
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