Private Limited Company (PLC) is most widespread and common corporate legal entity in India. The registration process of a private limited company is administered by the Companies Act 2013 and Companies Incorporation rules, 2014. For registering any private limited company a minimum of 2 shareholders and 2 directors are required. Ministry of Corporate Affairs (MCA) has presently executed major variations to the process and made it very simple to integrate a company. Most startup companies and small business organizations are generally interested to choose the private limited company option, as that can help them to raise the fund from outsides and also confines the liabilities of the shareholders.
Private Limited Companies basically have some unique features, like –
- They offer Limited Liability Protection to their shareholders
- Uninterrupted existence. Such companies can be continued even after the owner gets died or leaves the organization
- Ability to raise the funds
- Restricted trade of shares
Process of Private Limited Company Registration
The entire process of registering a private limited company consists of the below steps:
Digital Signature Certificate (DSC) & Designated Partner Identification Number (DPIN) — Obtaining digital signature certificate and designated partner identification number both are required for the registration process. DSC is required for filing e-forms on online portal of Ministry of Corporate Affairs (MCA). Shareholders of the company is required to file e-MoA and e-AoA after affixing digital signature certificate, and directors are required to obtain DPIN after making an online application.
Approval of the company name — Suggested list of company names (minimum 2 and maximum 6 names) are required to submit to MCA. Few points are considered by the MCA like, subject of availability of the name, standard of the proposed name etc. Based on the MCA processing period the approval of the name of company can be completed within 5–7 working days.
Registration of company — Documents for the registration process along with an application for registration is required to submit to Ministry of Affairs (MCA). Subject to the processing time it generally takes 5- 7 days to complete the company registration process.
Your company name plays a very significant role for branding and helps people to identify your nature of business. Hence you need to choose them with proper care. Maintaining the below criteria can help you to choose a right name for your business and get the approval from MCA:
- The name of your Private Limited Company should be brief. It shouldn’t be hard to pronounce.
- You should choose a name for your organization that indicates the type of business you have.
- It must be a unique name. The name shouldn’t have a similarity with any existing company name.
- You must avoid using name of any person within the company name.
- Your company name must have a suffix as “Private Limited”
- You must strictly avoid using any abusive wordings etc. within the name of your company.
You may contact CA in Gurgaon for getting all the professional supports for Private Limited Company Registration process in India. FinacBooks has more than 10 years of experience in offering solutions for accounting, financial and taxation for freelancers and small business owners.