To start a business in India, a company must have a registration. Unless the company receives Private limited company registration, the company is not allowed to do the business. It is usually seen that people don’t want to waste their time in the whole process of registration and start their business firm before receiving the license.
An individual or group of people own a private company. The owner must apply for the private limited company registration before running it in the market.
Below are a few points which describe the requirement of a Private Limited Company Registration:
- Members: Company must consist minimum of 2 and maximum of 200 employees or shareholders for filling the registration
- Directors: A private limited company must have at least 2 directors, and each director must have their DIN (Director Identification Number). The ministry of corporate affairs issues DIN. One of the directors must be an Indian citizen. The person must have spent at least 182 days in India before the company foundation.
- Company’s Name: This part is crucial. A company’s name has three significant parts. First company’s name, the second company’s work, and third Private Limited. Every private company mandatory to have Private Limited at the end of their names. Every company can send around 5-6 names to the registrar for the approval. After the discussion, the company will receive two names. It is requested that the suggestions given by the company must not match with any other company. So choosing the right name becomes quite essential.
- Registered office address: This field is quite important. While applying for the Private Limited Registration, address of the main office where all the decision and operation take place is required. It must be provided as the company’s permanent address to the registrar. After adequate verification, licensed is issued.
- Digital Signature Certificate (DSC): As in the digital world, everything is online, the digital signature is a must. All the documents would be submitted online, so the digital signature would require different places to verify the authenticity of the document. A digital signature is a must for all the directors of the company who has submitted their documents as the company’s director.
- Certificate of Profession: This certificate is a must. There are different domains in the corporate world. People are buying and selling various products. It is essential to check whether a particular company is selling a legal product or not. So to verify the product, profession certificate is necessary.
The procedure of filling application for the certificate Private Limited is completely online. Below are the steps involved:
- Apply for the digital signature and Directors Identification Number
- Choose a name for the company
- Prepare a summary Memorandum of Association and Articles of Association
- Various documents like stamping, digitally signing, needs to be e –filed with the registrar
- Certificate of commencement of business is acquired
Certificate of Private Limited is necessary due to various aspects. This certificate provides your company with various advantages in the corporate world. You won’t have any difficulty to search and hire efficient resources.
Overall, it is a common business structure which is mandatory to follow by every business person. This procedure also mentioned in company Act 2013 and the companies incorporation rules. There are few amendments performed on Company Act 2014, so it is crucial to know different update as per the years. Knowing the update would help you to access the procedure smoothly. A private company rightly can purchase, discard, or utilize a property of its own expense, if the company is the sole owner of its share. Registration of Private Limited is required ones for every company after that the company is entertained by various benefits provided to all the private companies.