Starting your business in India is exciting. Although it depends on what type of business you’ll venture into, you may want to begin from something small, and then climb the corporate ladder. It can be very lucrative to create your own business, but the more income you generate, the greater your risk.
With that said, forming a private limited company is your safest alternative. Below are points that discuss the steps on how to form private limited company in India and other considerations that you should be mindful of before registration.
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Plan Your Control Of The Business
As a start-up owner of a private limited company in India, you’ll aim to maintain its control under limited hands. A PVT LTD in India requires two directors and two members and membership restricted to a maximum of 200 members.
Accept capital contributions from a few investors so that the company can be manageable.
Meet The Requirements In Forming A Private Limited Company
When you’ve come up with a solid plan in controlling your business, the next step is to look at the requirements in forming a private limited company. The following are the considerations you must take into account before initiating with your India company registration;
- One lakh rupees shall be the lowest possible paid-up share capital
- The company should have a minimum of 2 members and a maximum of 200.
- The company should have a minimum of 2 directors and a maximum of 15.
- There is a constraint on the transmission of members’ shares.
- Subscription by the general public to the company’s capital shouldn’t be accepted.
If you’re confident of meeting the criteria mentioned above about establishing a private company, then the process for incorporation shall be executed.
Apply For Digital Signature Certificate, Director Identification Number And Name Approval
To start with your company registration process, the directors should fill out a DIN application in Form DIR-3 and DSC. After that, pick a good company name and five possible names, and fill out the name application in Form INC-1. Then, draft the Memorandum of Association (MOA) and Article of Association (AOA) with specialists’ assistance to prevent any infringement of the Act.
File Your Application To The Roc (Registrar Of Companies).
The final phase in the Private Limited Company registration process includes the inclusion of File SPICe or INC 32 RUN(Reserve Unique Name), and the following required attachments:
- Form DIR-2 or the Director’s consent
- Form INC-9 Affidavit of the members to the memorandum.
- Proof of registered address for the company office.
- Proof of Identification of the company directors.
- A Proof of address of the company directors.
- File form SPICe AOA and SPICe MOA for the Articles and Memorandum.
Afterwhich, secure the ROC’s Incorporation Certificate in Form No. INC 11 specifying the newly incorporated business name and PAN (Permanent Account Number).
When the online company application has been approved with the ROC, the owners must ensure registration according to any other legal requirements based on the company’s operations such as sales tax, service tax, etc.
The Bottomline
Forming a private limited company in India isn’t that complicated when you got the best consultants by your side. With our experience and knowledge at 3E Accounting India, you don’t have to worry about your India Company Incorporation. Contact us, and let’s get your business ready for registration.
It must also be understood that a business that faithfully conforms with regulatory requirements will most probably be a profitable organization in the long run. Thus, take the guide mentioned above and work your way towards achieving a successful private limited company in India.