One of the most common types of companies to get registered as is a private limited company. Most businesses choose to enrol themselves as private limited companies because arranging fund is easier; it offers limited liability to the partners, offers flexibility, easy loan accessibility etc.
Are you looking to get your private limited company registered? Here is the truth about the registration process –
Basic Requirements:
- There must be at least two members of the company.
- The company and its products should be made for the legal business and not harm society.
- In case the registrar issues a certificate of incorporation to illegal business, then the certificate will be void and registration cancelled by the central government.
Why Choose Company Registration in India?
Registering your company offers many benefits. It also lends a great deal of authenticity to your business.
- Shields from personality and protects from other risks and losses.
- Leads to reliable relationships with customers.
- Builds trust among customers, so more customers are keen to give your products a try.
- Offers liability protection to your assets
- Greater capital contribution and stability
- Increases potential to grow big and expand
REGISTRATION PROCEDURE
Obtaining Director Identification Number and Digital Signature– Obtaining Director Identification Number (DIN) for all the proposed directors of the company.
– Obtaining Digital Signatures of the Directors of the company.
After this, the application for the name of the Private Limited Company can be applied.
1. Applying for the Name
The promoters should propose more than one name for the company as it helps maintain a bit of flexibility and lets the registrar decide in case names may be similar to another registered business, entities or trademark.
These are the conditions for applying for a company name–
- The name should not be similar to an already registered company or trademark.
- The name should not be prohibited under the “Emblems and Names Act, 1950”.
- The name of the company should have the suffix – “Private Limited Company”.
It usually takes 3 to 5 working days for the registrar to approve the company name.
2. Filing for the Incorporation of a Private Limited Company
After the name is approved, promoters should submit an application for incorporation, prescribed fees and submit the following documents –
– Articles of Association
– Memorandum of Association
– Declaration from Directors
– Affidavits of the Directors
Besides the aforementioned documents, the company must provide relevant information regarding the registered office within 15 days of registration or during the filing of documents.
3. Subscribing to the Private Limited Company
Subscribing happens when each person signing has subscribed to the shares of the company. It means, every subscriber should have one share in their name, they should sign the memorandum in the presence of a witness and must clearly state the following –
- Address
- Personal Description
- Occupation
- Number of shares
- Nature of shares
Both, Article of Memorandum and association must be duly signed and stamped.
4. Certificate of Incorporation
After submitting the said documents, filing the required fees, certificate of registration will be issued by the registrar. Upon registration, the company becomes a separate legal entity from its partners.
Company registration can prove to be a challenging task, especially if you are not sure about documents, fees and other important things. It is advised to hire consultants or professionals to get your company registered. With the help of company registration services, the task is easier and runs smoother.
*This is the only information available of the registration process
