A private limited company is a type of business structure that is preferred by entrepreneurs due to its limited liability and ease of formation.
Step-by-Step Guide to Registering a Private Limited Company in India
- Obtain DIN and DSC: The first step in registering a private limited company is to obtain a Director Identification Number (DIN) and a Digital Signature Certificate (DSC) for each of the proposed directors. The DIN is a unique number assigned to each director, while the DSC is used to digitally sign the incorporation documents.
- Choose a Company Name: The next step is to choose a unique and appropriate name for the company. The name must be approved by the Registrar of Companies (ROC) and should not be identical or similar to an existing company name. The company can apply for name approval by filing Form INC-1 with the ROC.
- Draft MOA and AOA: The Memorandum of Association (MOA) and the Articles of Association (AOA) are the two key incorporation documents that must be prepared. The MOA outlines the purpose and scope of the company’s operations, while the AOA sets out the rules and regulations that govern the company’s internal affairs.
- File Incorporation Documents: The MOA, AOA, and other incorporation documents must be filed with the ROC along with the requisite fees. The documents must be accompanied by a Declaration of Compliance in Form INC-7, which must be signed by a professional such as a company secretary or a chartered accountant.
- Obtain PAN and TAN: Once the company has been incorporated, it must obtain a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN). The PAN is used for tax purposes, while the TAN is used to deduct and collect taxes from employees.
- Register for GST: If the company is engaged in taxable activities, it must register for Goods and Services Tax (GST). The company must apply for GST registration by filing Form GST REG-01 with the GST department.
- Open a Bank Account: The company must open a bank account in its name to receive and disburse funds. The bank will require the MOA, AOA, and the Certificate of Incorporation as well as proof of identity and address of the directors.
- File Annual Returns: The company must file an Annual Return with the ROC every financial year, providing details of its financial performance and other business activities. The Annual Return must be filed within 60 days of the company’s annual general meeting.
In conclusion, private limited company registration in India requires obtaining a DIN and DSC, choosing a company name, drafting the MOA and AOA, filing the incorporation documents with the ROC, obtaining PAN and TAN, registering for GST (if necessary), opening a bank account, and filing Annual Returns. By following these steps, an entrepreneur can successfully incorporate a private limited company in India.