REGISTRATION PROCESS OF PRIVATE LIMITED COMPANY

 

Create your business entity in the form of Private Limited Company.

Meaning of Private Limited Company

Section 2(68) of the Companies Act, 2013 define Private Limited Company as –

Private Company" means a company having a minimum paid-up share capital as may be prescribed, and which by its articles],—

(i) restricts the right to transfer its shares;

(ii) except in case of One Person Company, limits the number of its members to two hundred:

Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member:

Provided further that—

(A) persons who are in the employment of the company; and

(B) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and

(iii) prohibits any invitation to the public to subscribe for any securities of the company;

Features of Private Limited Company

1. There should me minimum 2 members required to form a Private Limited Company and number of members should not exceed 200 subject to certain conditions of Section 2(68) of the Companies Act, 2013.

2.     There is no requirement of Minimum Paid-up Capital to form a Private Limited Company. The word as may be prescribed used in the definition of Private Limited Company. It means s Private Limited Company can be formed with zero Capital.

3.     The liability of its members is limited to the number of shares held by members.

4.     The members of Private Limited Company cannot transfer their Shares publicly.

5.  Private Limited Companies cannot invite to general public to subscribe their shares.

6.     It is important for private companies to use the word “Private Limited or Pvt. Ltd.” in their name. Private companies are mandatory required to use this in their name.

7.     The Private Limited Companies having perpetual succession. Its life or continuity is not affected by the life of its members. These companies are created by law & are also dissolved by it. Death, insolvency or bankruptcy of any of its members does not affect the life of the business.  

8.   Private companies are created by law. These companies have a separate legal entity from its owner& shareholders. It is treated as an artificial person & conducts business in its own name. It has its own name, own seal & owns all property in his own name.

 

Process of Formation of Private Limited Company

There is a single route of formation of Private Limited Company through Spice+ form. Following are the main forms required to be upload with MCA (Ministry of Corporate Affairs) portal for the formation of Private Limited Company.

1.     SPICE+ (INC-32): In this Form we can make application for the Name reservation of the Proposed Company, application upto 3 DIN (Director Identification Number), Register office of the Company and Application for PAN&TAN of the Proposed Company.

2.     E-MOA(INC-33): Now there is no need of filing of MOA as an attachment of the spice+ form.

3.     E-AOA(INC-34): Now there is no need of filing of AOA as an attachment of the spice+ form.

4.     AGILE+(INC-35): Application for Registration of the Goods and Services Tax Identification Number (GSTIN), Employees’ State Insurance Corporation (ESIC) registration and Employees Provident Fund Organization (EPFO) registration and Opening of Current Account of the Proposed Company.

5.     INC-9: It is an electronic form generated itself after completion of spice+ form. It is a kind of declaration by the first Subscriber which should be signed in digital form.

List of Documents required for the Formation of Private Limited Company

Following are the documents required for the formation of Private Limited Company.

1.     KYC Documents of Proposed Shareholders/Subscribers/Directors

-         Copy of PAN (Id Proof)

-         Copy of Aadhar/Passport

-         Copy of Bank Statement/Electricity Bill/Landline Bill/Gas Bill (Address Proof)

-         Personal Mobile No

-         Personal Email id

-         Passport Size Photograph

 

2.     Proof of Register office Palace

-         Rent Agreement (if Property is Rented)

-         Electricity Bill of Proposed Register office premises

-         NOC(Non Objection Certificate form the Landlord)

 

Author:- Author of this Article is CS Vinay Pandey

About CS Vinay Pandey:-  CS Vinay Pandey is Associate Member of Institute of Company Secretaries of India and Law Graduate from VBSPU, Jaunpur.  He is Co-Founder of Professional Study Point and faculty of Financial Management Paper of CS Professional Programme.

CS Vinay Pandey

(Company Secretary & Writer)

(CS, LLB, B.Com)

cs.vinaypandey@gmail.com  

Mob/Whatsapp: 9911473074

 

Disclaimer: The content of this article is intended to provide a general guide to the subject matter and that the same shall not be treated as legal advice. For any queries, the author can be reached at cs.vinaypandey@gmail.com