A Guide to start a Private Limited Company.

Shareholders and Board of Directors.

Finding Shareholders is The First step to making a Private Limited  Company. A minimum of 2 shareholders are mandatory. Shareholders can  be both active and silent. An active shareholder participates in the management of the company. While, the silent one acts as an investor. And only earns the profit gained.

The second step, is to finalize the directors, of the Company. Requirement of 2 directors is a must to start a company. A shareholder can be a director as well. A director runs the company. A director needs to be physically present. And, fulfill the responsibilities. One gets remuneration in a company. Thus, a person can earn profit in two ways. Firstly, being a shareholder. And, at the same time working as a director. One can choose more number of directors for the company. In that case, the group of directors in called  the Board of Directors.

Registrations under MCA.

Registration process begins once the shareholders and directors are finalized. It is done under The Companies Act, 2013.  Ministry of Corporate Affairs performs the registration. It’s a governmental body that registers all the business under itself. Thus, marking their presence.

Two important documents of MCA  are MOA  and AOA. MOA stands for Memorandum of Association.  It defines the powers and objectives of the company. While, AOA, is Articles of Association. It states all the rules and regulations for running the company. Thus, MOA and AOA safeguard the identity and the working of a PLC. Thus, it is mandatory to register with the above documents.

Selecting a Name.

Decide a unique name. The name helps to recognize a company.  Thus, a new and different name is a must to create a better market and scale up the business. All the companies are advised to have dis-similar names. Hence, the name registration is important to observe the above. In case the names match, MCA instructs one of the businesses to change their name.

DSC Registration.

DSC stands for Digital Signature Certificate. DSCs are electronic signatures. There are chances of the important documents to get leaked. And being used for unfair means. Digital Signature Certificate ensures the security of the submission of these documents. So, it guarantees security during and after the development of the Company. One can use the same DSC for registration of different company. They are usually valid for one, two or three years. After they expire, one can get them renewed.  To get a DSC, one can directly contact the CAs with the required documents.

DIN Registration.

DIN implies Director Identification Number. It is an 8 digit unique code. And provided to every director as an individual identity as a director. A person can be director in multiple companies. But, that doesn’t infer that one will have multiple DIN. No matter in how many companies a director is appointed. But, the DIN stays the same. In case a person is a director and doesn’t have a DIN, one has to register for eFORM SPICe. One needs to attach an Id proof. IN addition, an address proof as well to complete the formalities. So, one can obtain a DIN.

ROC Form

Following forms have to be prepared and submitted.

1. INC-32- Incorporate a Company with a single application for reservation of name.
2. INC-33- Memorandum of Association.
3. INC-34- Articles of Association.
4. INC-35- E-Form Agile.

Certificate of Incorporation

The certificate issued to a  company is called a Certificate of Incorporation. It is mandatory for a company to have a Certificate of Incorporation. As it is no less than a birth certificate of the company.

GST Registration.

A GST registration is a must for a Private Limited Company in case the turnover is more than 40 lakhs, for services. And, 20  lakhs for manufacturers’. IT can be done, while the company is running as well. 

PAN Card.

MCA issues a PAN Card. It is in the name of the firm. Thus, not the shareholders or directors. It is a very important identification card. Thus, starting a business requires a PAN Card registration.

TAN Number.

TAN stands for Tax Deduction Account Number. It is a 10 digit unique code. One can not take benefit of the Income Tax collection facility without a TAN number. Therefor, it is very important to have one. Specifically, to gain payments form banks to develop the company.

Summary.

The above registrations are all done under The Ministry of Corporate Affairs. But, its important to note one thing. That is, that the firm needs to apply for each of these registrations specifically. None of the registrations are related to each other directly. Thus, make sure to apply independently in all of them. Hence, one needs to perform a series of procedures to start the firm. Online registrations are available now.