Approximately Registering A Private or Public Limited Company in India

Apart from the one person company(OPC) and Limited Liability Partnership (LLP) Firm, the other two hugely popular types of companies in entire India are the limited company (Pvt. Ltd Company) and the Public Limited Company (Public Ltd Company). Hence, almost all well-resourced and prestigious company law firms located all across India essentially extend legal and advisory services for registering these all four types of most popular companies to help secure and lucrative engagement in various economic sectors. Here, in this short article, very useful and exclusive information only about registration of the private and public limited companies in India is being provided, to help the concerned Indian or foreign entrepreneurs and investors.

Both these private and public limited companies are highly suitable for smooth and profitable business or service in the desired economic fields. After allowing as many as 200 members to a private limited company in India by the new Indian Companies Act of 2013, the Pvt. Ltd Company has also become utmost suitable for gathering huge capital to fund further business growth and diversification. However, it must be noted that a private limited company is not entitled to sell its shares to shareholders or investors external to the company, and cannot participate in the share trading on the stock exchanges, like the listed public limited companies. This statutory fact necessitates larger disclosures to the regulatory authorities by the listed public limited companies (as compared to those by a private limited company).

To form and register a private limited company, there are essentially required at least two directors and two stakeholders; and for incorporation of a public limited company, mandatory are three directors and seven shareholders at a minimum. The requirements of gathering the minimum paid-up share capital and getting the certificate for commencement of a business have been eliminated by the new Companies Act, 2013, and rules associated with this Act. Again, both these types of companies are registered and regulated by the Registrar of Companies (RoC) of the related State, and ultimately by the Ministry of Corporate Affairs (MCA), Govt of India. The procedure for incorporation is almost the same for both these limited companies, with only few differences in the documentary requirements and processes. In general, the procedure for registration of a limited company in India encompasses the following tasks or processes ---

• Obtaining the DSCs and DINs of the concerned directors, through Form DIR-3
• Checking availability of any proposed name of the company, through Form INC-1
• Filing the application for company incorporation with the relevant RoC in Form INC-7
• Submission of all necessary information and documents, including the incorporation documents like the MOA and AOA of the proposed limited company, information associated with the Registered Office of the company (in Form INC-22), documents related with the directors (in Form DIR-12), and so on.
• And, other pieces of information and documentation which may be required by the concerned ROC, depending upon the type of the limited company.
• Submission of all necessary information and documents, including the incorporation documents like the MOA and AOA of the proposed limited company, information associated with the Registered Office of the company (in Form INC-22), documents related with the directors (in Form DIR-12), and so on.
• And, other pieces of information and documentation which may be required by the concerned ROC, depending upon the type of the limited company.
• Submission of all necessary information and documents, including the incorporation documents like the MOA and AOA of the proposed limited company, information associated with the Registered Office of the company (in Form INC-22), documents related with the directors (in Form DIR-12), and so on.
• And, other pieces of information and documentation which may be required by the concerned ROC, depending upon the type of the limited company.

Today, for registering a company (limited companies or other) there are also available two other alternatives, then the above-mentioned procedure. These are use of the Integrated Company Incorporation e-Form INC-29; or the Combined SPICe Form INC-32 (along with the RUN web-service of the MCA Portal (www.mca.gov.in). However, the applicants must keep in mind that the SPICe (Simplified Proforma for Incorporating Company Electronically) Form can only be utilized when the authorized share capital of the desired private or public limited company is up to the amount of?Ten Lakh (Rupees One Million).

Kavita is working as a consultant at a legal services in India. She is also an experienced and passionate writer who has been written many Blog and websites' content about Company registration and Trademark registration in India.