Process of Registering a Company Online

To enable a streamlined and integrated process of company incorporation, the government has introduced the SPICe+ (INC-32) form which also allows for the name selection of a proposed company. The process of online registration of a private limited company entails the following steps, which can be completed through the SPICe+ form:

Private Ltd Company

• Individuals willing to start a company must apply for a Digital Signature Certificate (DSC)
• They must apply for the Director Identification Number (DIN) for the company’s directors
• Checking and applying for names available for the company
• Submitting the Memorandum of Association (MoA) and Articles of Association (AoA) required for registering the company
• Acquiring the PAN and TAN for the company
• The Registrar of Companies (RoC) grants the certificate of incorporation to the company with its PAN and TAN

Mandatory Documents to be Furnished for Online Registration of Private Limited Company

For Proofs of Identity and Address

• Scanned copies of the directors’ and shareholders’ ID proofs such as PAN and passports (passports are mandatory wherein the directors and shareholders are foreign nationals or NRIs)
• Scanned copies of the address proofs of directors and shareholders such as Voter ID/Passport/Driving License/Aadhar etc.
• Scanned copies of instruments such as up to date Electricity or Telephone Bill/Gas Bill/Bank Account Statements reflecting the addresses of directors and shareholders
• Recent passport size photographs of directors and shareholders

For Proofs of Address of the Registered Office

• Scanned copy of the rental agreement (If rented property)
• Copy of NOC (No Objection Certificate) from the owner of the property (If rented property)
• Up to date copies of bank statement/electricity or gas bill/telephone or mobile bill)
• Scanned copy of registered sale deed/property deed (if owned property)

Advantages of Private Limited Company Registration

Recognized as a Distinct Legal Entity

A private limited company is recognized as a distinct legal entity. This means that the shareholders, directors/individuals managing the company, and the people working in it will not be held liable for its losses. The company as an entity is responsible for the management of its assets, and of the liabilities accruing from its debtors and creditors.

Risk to Personal Assets is Limited

The liabilities of a private limited company’s shareholders are limited. A shareholder will be deemed liable to pay up for the company’s liability only to up the limit of his/her contributions to the company. Further, the shareholders are not deemed to have any personal liabilities in a private limited company and are therefore not obligated to pay for its liabilities from their personal assets.

Ease of Raising Capital

Since private limited companies are recognized as distinct legal entities, the banks, venture capitalists, angel investors, and other financers are often inclined to fund them. Raising funds through equities, and credit/loans thus becomes easy for corporates.

Trustworthy in Nature

As per the provisions of the Companies Act, 2013, every private limited company in India must be registered with the Registrar of Companies (RoC). Therefore, details of a company can be easily retrieved on the Ministry of Corporate Affairs (MCA) portal. The details of a company’s directors also can be found on the platform. Private limited companies hence tend to be trustworthy.

Perpetual Existence

A private limited company enjoys uninterrupted existence until the time it is formally/legally dissolved. Since a company is treated as a distinct legal entity, this status remains unaffected even upon the death of any of its members and continues to be so irrespective of membership changes.

FAQs

1) How long does the registration of a private limited company take?

A) The registration process takes about 15 days to complete if all the company documents are in order. The duration may also depend on the registrar’s workload.

2) What documents should be provided to complete the registration process?

A)The directors of the company are required to furnish proofs of identity and address. Furnishing a copy of the PAN is mandatory. If the directors are foreign nationals, they must furnish their passports as well. If the company’s proposed registered office is to be set up in a rented property, a NOC from the owner of such property is a must.

3) What rules govern the naming of a private limited company?

A) The naming of a private limited company primarily depends on whether the name applicants choose is available for selection. Applicants are also expected by the Registrar of Companies (RoCs) to comply with certain naming guidelines. Some of those guidelines tend to be subjective. Therefore, the approval or rejection of a name for a company may also depend on the registrar’s discretion. However, if applicants follow the naming guidelines and fulfill the documentation requirements, their chances of approval for a company name significantly go up.

4) Should the applicants be physically present for the registration process?

A) Applicant’s physical presence for the registration process is not required as it is completely online. Since the submission of documents also happens online, you are only required to provide us with scanned copies of the mandated documents and forms.

5) Is it mandatory to get the company’s books audited?

A) Irrespective of a private limited company’s revenues, it must appoint an auditor within 30 days of its registration for the purpose of auditing its books. Non-compliance may result in heavy penalties and directors being blacklisted.

6) Is it mandatory for a private limited company to have two directors?

A) Yes, a company must have at least two directors, with the maximum being fifteen. If you are the only owner of a company, you may get it registered as a “one person company”.

7) Can a salaried person at one private limited company be the director of another company?

A) Yes, if the terms of the salaried person’s employment contract allow them such privileges, they can be a director at another company.

8) What purpose do AoA (Article of Association) and MoA (Memorandum of Association) serve?

A) The AoA and MoA define the goals and rules of a company and establish the roles and responsibilities of its directors and shareholders.

9) What is the minimum capital required for the incorporation of a private limited company?

A) No minimum capital is required for the incorporation of a private limited company.

10) Can a private limited company have foreign nationals/NRIs as its directors?

A) Yes, so long as the board of directors has at least one director who is an Indian resident, even foreign nationals or NRIs may be appointed as directors of an Indian private limited company. They must have their respective DINs granted by the RoC and may also hold controlling stakes in the organization.