A company incorporated by shares may be ” Public Limited ” or ” Private Limited”. In both cases the company is incorporated under the preview of” The Companies Act, 2013 (previously The Companies Act 1956). A Company is a separate legal entity with perpetual succession for lawful purpose. A private company is formed with a Authorized Capital and this capital is divided into shares of a fixed face value. The minimum authorized capital to incorporate a private limited company in India is Rs. 1 Lakhs. The minimum share holders and directors require for a private limited company is Two. The shareholders may act as directors. The first subscribers of the company is known as promoters of the Private Limited Company. In India the incorporation of a company is under the control of Ministry of Corporate Affairs, shortly known as MCA. The Registrar of Companies (ROC) operated under MCA will be the verifying and certifying authority of Company affairs.
About Ministry of Corporate Affairs (MCA)
The Ministry is primarily concerned with administration of the Companies Act 2013, the Companies Act 1956, the Limited Liability Partnership Act, 2008 & other allied Acts and rules & regulations framed there-under mainly for regulating the functioning of the corporate sector in accordance with law. The Ministry is also responsible for administering the Competition Act, 2002 to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers through the commission set up under the Act.
Both company Limited by Shares and Limited Liability Partnership Firms (LLP) are incorporated under Ministry of Corporate Affairs.
Registration procedure of a Private Limited Company (PLC)
Name Reservation : Every entrepreneur who wish to register a private company requires a name for the business. The name not be identical with the existing registered companies, so conduct through search on company registry and trademark registry. The MCA fees for reserve a name for a company is Rs. 1,000/- and a validity of 15 days after allotment of name. As per the new amendments the name is reserved on Spice + (Part A).
Digital Signature Certificate (DSC) : Obtain digital signature for first subscribers and directors of the company. There must be minimum 2 shareholders and 2 directors for a private limited company.
Form filling for Registration : The various forms for PLC Registration is Spice + (Part 2), E-MoA, E-AoA, Form INC 9 and AGILE PRO. As per the new amendment in company online registration in MCA portal the applicant fill the forms online after login on MCA Portal and download the form in PDF after pre-scrutiny. Then affix the DSC of Directors and verifying Authority (CA / CS / CMA / Advocate).
After Login on MCA Portal >.. MCA Services >.. SPICE+
After affixing the dsc in all forms, then need to upload in MCA Portal and pay the prescribed fees.
Now we can apply for DIN, PAN, TAN through Spice + form . Also made mandatory for registering ESI, EPF & Opening a Bank Account for newly incorporated companies w.e.f. February 23, 2020. In the State of Maharashtra professional tax registration is also mandatory.
Note: Every newly incorporated companies must file the return under ESI & EPF within 6 month of incorporation or rules applicable which ever is earlier.
Approval by Registrar of Companies : The certifying authority, i.e. Registrar of Companies (ROC) verify the application and allot the Corporate Identity Number (CIN). We can also get an approval mail along with Certificate of Incorporation as its attachment.
Commencement of Business : Every company incorporated after November 02, 2018 must file FORM 20A with in six month to obtain Certificate of Commencement, otherwise MCA may disqualify the directors and charge huge penalties.
Documents required for Company Incorporation
- PAN & Aadhaar card of Directors & Promotors
- Email, Phone No. & Education Qualification of Directors & Promotors
- DIN (if a director have already a valid DIN)
- Digital Signature of Directors & Promotors
- Address proof of Directors & Promotors (Bank / Electricity Bill/ Telephone bill/ Mobile bill)
- Proof of Identity of Directors & Promotors (Voters Identity Card/ Passport/ Driving License)
- Passport Size Photo of Directors
- Proof of Registered office (Copy of Utility bill not older than 2 months)
- Latest Building Tax Receipt
- Rent Agreement / NOC from Owner with Certificate of Ownership
- Statement of Directors in FORM DIR 2 (Format available in downloads)
- Specimen Signature of Authorized person in EPF (Format available in downloads)