A private limited company is a legal entity approved by the government of India incorporated under companies act. This is the most trustworthy business model as compared to others like Sole Proprietorship, Partnership, etc,
Private limited organization is the most popular corporate element among small ,medium and large business . most of the entrepreneurs prefer to registered your company as a private limited company due to various benefits –
- Ideal for startups and growing business.
- The liability of each members or shareholders is limited
- Easy transability of shares
- There is a wide scope of expansion of business because it is easy to raise funds from the investor
- Separate legal entity
- Tax advantages
- Banks easily approved loans to private limited company
- Easily formed international reputation
Documents required for the Registration of the private restricted organization
Passport size photograph
PAN card copy
Proof of identity (Passport, Aadhar card , Driving license , VOoter id card, )
Office property ownership / rental documents
Address proof of registered office premises
Steps for registration of private limited company
First Step – Apply For Digital signature certificate
The initial step is to begin the enrollment is to executive'( Digital Signature Certificate). It is an electronic signature which will be used to sign the E- form , income tax return , etc . A persone sign a documents on a computer.
Second Step – Director Identification Number
It is numerical digital number issued by the government. DIN is a unique code which has life time valid.
Documents required for DIN registration
Third Step – Apply for name approval
After getting the digital signature and DIN we have to fill form for company name approval. The name should be unique and not similar to any company.
The application can place maximum 6 choice for approval of name.
The fourth step – Drafting of Memorandum of association (MOA) and Article of association (AOA), filling and uploading of incorporation forms.
After the name approval the next step is to prepare some documents like MOA, AOA, Declaration, affidavits, formats of the some has been prescribed by the MCA.
Fifth step – Getting incorporation
On the successful submission of documents, the ROC may issue certificates of incorporation to company. The company is incorporated on the date of issuance of certificate of incorporation.
The entire procedure including the endorsement of DIN, Name, and Incorporation takes around 7 working days.