Unlocking the Path: Private Limited Company Incorporation Demystified

Establishing a private limited company is undoubtedly one of the turning points in every entrepreneur’s career. That is a journey to the land of legal creatures, both offering opportunities and ensuring safety through limited liability. We will now explore the details of the procedure of private limited company registration in Delhi, highlighting the elements particular to Delhi and the Indian regulatory system with the help of Taxcellent, the Tax Partner.

1. What is a Private Limited Company?

A private limited company having limited share capital is a legal entity separate from its shareholders, offering limited liability protection wherein the liability of shareholders is limited to the extent of their shareholding. In India, a private limited company is governed by the Companies Act, 2013, and is identified by restrictions on the transferability of shares, prohibition on public offering of shares, and a cap on the number of shareholders, typically not exceeding 200.

2. What are the important Features of Private Company Limited?

3. Points to remember at the time of Pre-Incorporation

Before initiation of the incorporation process, the following steps to be taken to ensure a seamless incorporation of a company. These include:

4. Procedure -How to Incorporation a Company:

The incorporation of a private company limited in India entails the following steps:

Step 1: Obtaining Digital Signatures of Directors & Subscriber (DSCs): Directors and subscribers to the Memorandum of Association (MOA) and Articles of Association (AOA) are required to obtain Digital Signature Certificates (DSCs).

Step 2: Requirement of Director Identification Number (DIN): All the respective persons intending to serve on the board of the company must apply for Director Identification Number (DIN) through the Ministry of Corporate Affairs (MCA) portal.

Step 3: Apply for Name Reservation: Reservation of the company name should be applied by filing Form SPICe+ through the MCA’s online portal (SPICe+ means Simplified Proforma for Incorporating Company electronically Plus).

Step 4: Drafting of necessary Documents:

a) Memorandum of Association (MOA)

Prepare the MOA, which defines the primary objectives along with the scope of activities of the company.

b) Articles of Association (AOA)

Draft the AOA which provide the details about rules, regulations, and internal governance structure of the company.

Step 5: Filing of Documents for Incorporation:

Step 6: Payment of Statutory Fees: The person registering the company is required to pay the prescribed fees for incorporation, stamp duty, and other statutory charges through the MCA’s online portal.

Step 7: Verification and Approval: Subsequent to submission of documents and payment of fees, the Registrar of Companies (ROC) will verifies the application and issues the Certificate of Incorporation (CoI) electronically on email.

Step 8: Formalities to be completed Post-Incorporation:

5.  Other Statutory Compliance:

Incorporation is an evidence of the inception of the company’s journey, accompanied by number of statutory and regulatory compliance obligations, including:

Taxcellent assist you in company incorporation in Delhi within 15 days.

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