A private limited company is a business that’s owned by private individuals. Incorporation and registration of private limited companies falls under the purview of the Companies Act of 2013. By registering your private limited company, you make it a legal entity and tap into the benefits of limited liability. In other words, your personal assets remain protected against debts and liabilities of your company. Registration also boosts credibility of the venture and makes it easier to secure credit from various institutions like banks and NBFCs. If you wish to register your company, you can rely on the steps outlined in this article.
Step 1: Obtain a Digital Signature Certificate (DSC)
The first step in registering a private limited company is acquiring a class 3 DSC. As the name suggests, a DSC is a digital signature certificate required for signing the registration forms online. It is used to electronically verify the identity of the signatory. DSC is mandatory for all witnesses and subscribers to the company’s Memorandum of Association (MOA) and Articles of Association (AOA). You can obtain DSCs from government-recognised certified entities.
Step 2: Apply for a DIN (Director Identification Number)
DIN is a unique identification number assigned to any individual who wishes to be a company director. You can apply for a DIN in one of two ways:
- If you wish to become a director in an existing company, you must apply for DIN using Form DIN-3. Enter basic details in the form and submit it along with identity proof documents like Aadhaar, PAN, etc. and relevant address proof papers.
- If you are starting a new company, you can apply for DIN directly through the SPICe+ (INC-32) form. According to regulations, a total of 3 directors can apply for DIN using the same form.
Step 3: Secure approval for your company’s name
In order to get the company’s name approved for registration, you can choose from the following options:
Option 1: Use Part A of the SPICe+ Form to reserve the name
In this case, you can use Part A of the form to undertake name reservation. You can propose two names and resubmit one if your first choice is rejected due to similarity with an existing registered company, LLP, or trademark. To avoid rejections due to non-compliance, make sure you adhere to the rules outlined in the Companies Incorporation Rules 2014. Upon approval, the name will be reserved for twenty days, within when, you must complete Part B of the form.
Option 2: Apply together for name approval and incorporation
You can also skip the reservation part and apply for name approval and incorporation together. This would require you to fill out both Part-A and Part-B of the SPICe+(INC-32) form. But choosing this option means proposing only one name. In case of rejection, you will get one chance to resubmit in the same form without paying further charges. If it gets rejected the second time, you will need to start from the beginning.
Step 4: Fill out the SPICe+ INC-32 form
The approved company name will be visible on your MCA dashboard. Click on the approved name link to complete the SPICe+ form. Fill-out Part-B of the form online and then download the filled form as a PDF. Use your DSC to digitally sign it and submit it on the MCA portal. Remember that the SPICe+(INC-32) form allows you to complete the following multiple actions simultaneous:
- Apply for DIN
- Reserve company name (Part-A)
- Incorporation
- Apply for PAN and TAN
- Apply for EPFO and ESIC registrations
- Application for opening a bank account in the company’s name
- GST registration
Step 5: Complete and submit e-MoA and e-AoA
e-MoA or Electronic Memorandum of Association is the digital charter of the company, while e-AoA is the Electronic Articles of Association which outlines the internal rules and regulations of the company. Both must be digitally signed by subscribers to the MoA and AoA.
Step 6: Wait for PAN and TAN application generation
The integrated SPICe+ form generates your company’s respective PAN and TAN as well to reduce hassles. The system will auto-generate these forms after you submit the SPICe+ form.
Step 7: Get your certificate of incorporation
After your SPICe+ form is verified and approved, the MCA will issue the Certificate of Incorporation as well as your Corporate Identity Number or CIN. You will receive an email from the MCA with the Certificate of Incorporation, Corporate Identity Number or CIN, PAN, and TAN. The IT Department will send the physical PAN to the registered address.
Conclusion
Registering your private limited company is essential to access various opportunities like listing your products on online marketplaces to tap into the digital boom. The Indian government has made the registration process simpler by creating the SPICe+ form. Remember to register successfully, you need to obtain a DSC, generate DIN, get approval for a company name, fill-out the comprehensive SPICe+ form, and complete your e-MoA and e-AoA. Once that’s done, your company will be issued a Certificate of Incorporation, CIN, PAN, and TAN.
