Basic Requirements for Register a Private Limited Company in India
A private limited company is a commercial entity that is owned by private investors. In this scenario, the liability arrangement is that of a limited partnership, in which a shareholder’s liability is limited to the number of shares they own. With the startup ecosystem booming across the country and an increasing number of people wishing to establish their own business, it’s important to understand the numerous business company registration forms, such as sole proprietorship, limited liability Company, and private limited company. Many online private limited company registration has been done that follows simple procedures.
Before private company registration may be formed, it must meet a series of standards. The following are the conditions for registering:
Members and directors: As previously stated, to register a private limited company, the company must have a minimum of two and a maximum of 200 members to be lawfully registered. The Companies Act of 2013 mandates this as a legal necessity.
The following requirements should be met by the directors to register a private limited company:
- Each director shall be assigned a DIN, or director identification number, from the Ministry of Corporate Affairs. One of the directors must be an Indian resident, which means he or she must have spent at least 182 days in India in the previous calendar year.
- Company name: Choosing a company name is frequently a technical task. When choosing a name for a private limited corporation, it must consider three factors:
The main name of the task to be completed, ‘Private Limited Company’, is mentioned at the end.
Tip: Because no two businesses can have the same name, it is not always necessary for the name the business owner is looking for to be available. As a result, every business must submit 5-6 names for approval to the Registrar of Companies at the time of registration (ROC).
- The permanent address of the company’s registered office must be provided with the registrar of the company once the company has been registered. The company’s registered office is where the majority of the company’s business is conducted, as well as where all of the company’s paperwork is kept. The company will require professional accounting and chartered accountant services as well.
- Obtaining additional documents: To submit documents electronically, each organization must obtain a digital signature certificate, which is required to authenticate the documents’ authenticity. Furthermore, certifications by these specialists are required in a corporation that employs professionals (secretaries, chartered accountants, cost accountants, and so on) for a variety of operations.
How to register a PLC
After you’ve decided on a name for your business, follow the steps below:
1: Request a DSC (Digital Signature Certificate)
2: Request a DIN (Director Identification Number)
3: Request name availability
4: File the EMOA and EAOA to register the private limited company.
5: Apply for the company’s PAN and TAN
6: A certificate of incorporation with the PAN and TAN will be issued by the ROC.
7: Open a current bank account in the company’s name
Similarly, we can also do Public Limited Company Registration; it is a complex process as compared to private limited company registration.
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