What is the Process of Private Limited Company Registration

by Swarit Advisors Financial Service Consultant

Being one of the quickest creating economies, India is home to a huge number of yearning business visionaries. Most of them want to fuse an enlisted organization having a different lawful character according to the law. From numerous alternatives accessible like one individual organization, an open organization, restricted obligation association and private constrained, the choice that is generally favored by the new businesses is a private constrained organization. This is because of various advantages related to this business structure.

One significant thing that ceases them from doing so is the disarray about the expense and time engaged with private limited Company registration. Today, with this article we will comprehend the time and cost associated with private constrained organization enlistment in India. To start let us initially comprehend the significance of the private limited organization.

What is the private limited company:

Private Limited Company is a secretly held business that can be consolidated with at least 2 and a limit of 200 individuals. A portion of the significant advantages of the private limited organization incorporate constrained risk, separate lawful character, the extent of the outside direct venture and so forth.

Process Of Private Limited Company:

Now we will understand the step by step procedure of private limited company registration in India, the cost involved in it and the time taken at each step.

Digital Signature Certificate – To start the procedure of private limited company registration the directors and subscribers to the memorandum of the company are required to obtain the digital signature certificate. This is because in order to validate the documents filed electronically attaching a valid DSC is mandatory. One thing to be noted here is that Chartered Accountants or Company Secretary are not required to obtain DSC.

Directors Identification number – After obtaining DSC the directors of the company is required to apply for a director identification number. It is a unique number issued by the ministry of corporate affairs that is mandatorily required to be obtained by every person desiring to act as a director in any company.

Obtaining Name Approval – If you desire to seek name approval in advance you can apply for it through Reserve Unique Name form. In this form, you can provide any two unique company’s name preferences. If you desire to get the name approval in one shot make sure to select the name as per the ministry’s guidelines.

Filing of incorporation forms – This is the final and most crucial step in the process of company registration. The major cost and time of private limited company registration are involved in this step only. The factor that plays a major role in this step is the authorized share capital of the company. In this step the various forms like spice form, MOA and AOA are required to be filed. You can get the cost details for this part from the ministry of corporate affairs website by entering the authorized share capital amount of your company. In case you select SPICE from the drop-down and then enter the share capital amount for registration, it will show you the cost for filing MOA, AOA.