If you have decided to establish a business in India, you are sure to get stuck with its legal procedures as you may not have in-depth knowledge about the Company Act related to registering a Pvt limited company. As you don’t have awareness on the legal procedures that have to be followed to transform your business to a private limited company, you may end up paying a huge sum for the service providers. However, you can enrich your knowledge about the process involved in private limited company registration by surfing the internet.
Before beginning with the procedure, you should get well versed with the basic information. Here are some basic details that you must pay close attention before you begin with the process of registration.
The minimum capital required for staring or registering a private limited company is 100,000 INR. Authorized capital is not the amount that you need to pay to the registrar of companies. Rather, it is the minimum turnover of the company in the financial year.
Two Shareholders And Directors:
There must be at least two share holders and two directors to register your business as a private limited company. Of course, the share holders can also act as the director of the company. The shareholders can be anyone, your relatives, friends or parents. The business expenses and the profits are shared with shareholders based on the shares that they subscribe.
The individual who becomes the director of the company should get Director Identification Number provided by Ministry of Corporate Affairs. In fact, you should get DIN number before apply for company registration. In addition to DIN, you must also apply for digital signature. It takes around two to four days to get DIN number and Digital signature. You have to provide identity proof, photographs and residence proof to get DIN number and electronic signature.
As you have both Digital signature and DIN, you have the eligibility to apply for the company name. There are some guidelines that you must strictly follow to get the company name. You should include the nature of your business while applying for company name. Of course, it is mandatory to send at least 6 desired names when you want to register your company name. Once you gave applied for the name, you can get the application status within 7 working days. Of course, you can reapply for another name if in case your application is rejected.
MOA And AOA:
After getting your company name approved, you have to draft Memorandum of Association and Articles of Association and get them stamped from ROC. You need to pay a stamp duty fee to get MOA and AOA stamped through MCA 21 portal. MOA and AOA is nothing but the brief description about your company, your business kind, policies that you will follow, employees strength and complete profile of your company.
If you are able to follow all these steps in the perfect manner, you are sure to make pvt ltd company registration of your business.