Steps to Form a New Company
Posted: Sep 26, 2022
Steps to Form a New Company
Whenever someone talk about registering or forming a new company, Private Company Registration is the first name which strikes our minds. According to data by MCA more than 20,000 companies gets register every month and out of which 80% of them are incorporated as Private Limited Company.
As per section 2(68) of the companies Act 2013,
A Private Limited Company means company having a minimum paid up share capital as may be prescribed and which by its article.
(a) Restricts the rights to transfer its share
(b) Except in the case of one person company, limits the number of its member to two hundred.
In layman language, Pvt ltd company is the company which is formed by minimum 2 members and can extend up to 15 and in special cases more than 15 by passing of Special Resolution in the Board Meeting.
Benefits of the Private Ltd Company Registration
- The liability of the members in the Private Limited Company is limited.
- It is termed as a separate legal entity because the member does not have any liability towards the creditors of the company.
- A company registered as the private limited enjoys perpetual succession which means that the company can never come to an end. The company continue to exist despite of bankruptcy, Insolvency, or even death of the member.
- Private limited company is a suitable business structure for small businesses as it has lesser compliances and greater rewards like the get eligible for corporate tax benefits and MSME Registration etc.
- India being a global leader of Start-ups and creating the start-up ecosystem, Private Limited Company can get recognition certificate by DPIIT to enjoy several relaxations provided to them.
Now registration process is not that complicated as it was earlier, you can get your company registered by sitting anywhere in the world. This has become possible only after the Introduction of Digital India and online MCA Portal. No more standing in the long queue’s, register company at the ease of your home.
WHAT ARE THE STEPS TO FORM A NEW PVT COMPANY IN INDIA?
Step 1: Availability of Name and Name Reservation
MCA has provided guidelines to be kept in mind while choosing and filing the name of the proposed company. The department may reject the name on the various grounds such as if they find that it is undesirable or similar to the name of existing company or trademark. Once the name of the company is finalized, next step is to file SPICe+ Part A for Name reservation.
On the other hand, you can also file integrated Form SPICe+ Part B which includes name application from SPICe+ Part A.
Step 2: Submission of KYC Documents with other Relevant Information
The following documents are required to submit online for Incorporation of Private Limited Company.
Following Documents of all the Directors and Shareholders are required:
PAN CARD (Mandatory ID proof self-attested)
Aadhaar Card (Optional)
For Permanent Address Proof
Self- attested copy of Voter Id/ DL/ Passport (anyone)
For Present Address Proof – self-attested copy of Bank Statement or Utility Bills (these documents shall not be older than two months from the date of filing Incorporation application)
Documents required for Company
Authorised and Paid-up Share Capital of the Company
Proof of Registered Address of the Company (Rent Agreement and utility bills)
NOC from the Owner of the Property
Step 3: Other Relevant Documents
There are other incorporation draft documents which are required to be attached along with the Incorporation Forms
Consent of Directors to act as the Director of the Company
Intimation by Director with respect to its Directorship and Disqualification, if any.
Certification from CA/CS/CMA or Advocate in practice
Other Relevant Documents
Step 4: Submission of Incorporation Forms
Once all the Information and documents are compiled, we have to file the Incorporation Forms and submit it to MCA through https://www.mca.gov.in/mcafoportal/run/spice (MCA Portal). FORM SPICe+ is to be filed for incorporation which consist of several linked forms. All these forms are to be digitally signed and verified by the Director and the Shareholder of the Company respectively, through DSC.
Step 5: Issue of Certificate of Incorporation (COI)
When all the above-mentioned procedure is duly completed, the CRC Department will setup scrutiny of the submitted documents and if they find some errors, they will mark the forms sent for resubmission and if ROC is satisfied with the information and documents provided by the applicant. The applicant will receive Certificate of Incorporation (COI) of the Company on the registered Email address (Company’s Email) along with PAN and TAN of the newly formed company.
Once the company is incorporated the person can check the company details in the master data online by searching it at www.mca.gov.in or by direct link at https://www.mca.gov.in/mcafoportal/viewCompanyMasterData.do
If you are thinking you register your Private Limited Company, at Compliance Calendar LLP we have dedicated group of professionals who are experts in the company registration process and could give you the complete handholding throughout the registration process. If you have any query regarding the Company registration procedure, please feel free to get in touch with us at email@example.com or call us at 998844211.
A Private Company Registration in Gurgaon/Gurugram is the most popular way of business registrations among all the categories like small, medium, and large enterprises in India.