How To Register A Pvt. Ltd. Company In India

Whenever we have a business idea to start with

, we only stuck at its legal procedures because either we are not known to procedures related to how to register a Pvt. Ltd. company or we don't have a legal consultant to help. This has been found that due to unwareness of the legal procedures most of the services providers ask for a huge sum. But with the help of this article you will be aware about the procedures involved in registration of a Pvt. Ltd. company in India.

To register a pvt ltd. company we should must be known to the following facts:

1. The minimum authorized capital to start or register a pvt.ltd. company is Rs 1,00,000. Authorized capital doesn't mean that to start a company you will have to pay Rs 1,00,000 to ROC (Registrar of Companies). The minimum authorized capital is the minimum business turnover of your company in a financial year.

2. There should be minimum two shareholders and two directors or the two shareholders acting as the directors of the company. Here the shareholder can be your parents, your relatives and friends. The shareholders of the company share the business expenses and the business profits depending on the shares they subscribe.

3. A person becomes director in a company after getting a DIN (Director Identification Number) issued from Ministry of Corporate Affairs. Aquiring a DIN Number is the first task prior to register a pvt. ltd. company . Along with DIN you should also apply for Digital signature ( an electronic signature to file doucments through e-governance on MCA 21 portal). To Apply for DIN and Digital Signature you should provide copies of your Identity proof, residence proof and photographs. DIN is applied directly through MCA portal but to apply for a Digital Signature, you will have to contact the authorized Digital Signature providers like MTNL Trustline, Emudhra, Tata Consultancy Services. Both of the applications take two to four days time.

4. Now as you have the DIN and Digital Signature, you can apply for a company name. Here we must follow some guidelines that while opting a company name we must have our business name related to the business we are going to start. For example, If you are going to start a pvt. ltd. company who will trade in electronic items then you should go for XYZ Electronics Pvt. Ltd. Here your company name reveals your nature of business. While applying a company for registration of the company, we have to send minimum of 6 desired names.

Once you apply you can get your application status i.e. approved or rejected within seven working day clearly stating the possible cause. Now for instance if you applied with six names and you got approved for such a name which doesn't suits, you can reapply for the company name. But the prior name is approved for a period of sixty days only. So in between if you could not find a good name you can go ahead with the name approved earlier.

5. After approval of the company name, we have to draft Memorandum of Association & Articles of Association and get it stamped from ROC paying a stamp duty fee. The stamp duty may also paid online through MCA 21 portal. The MOA & AOA are a brief description about your company, what type of business you can do, what policies you will have to follow, the employees strentgh and almost your total company profile.

6. Consequently after following these steps you get an incorporation letter issued from Registrar of companies after paying the company registration fee based on your authorized capital.

How To Register A Pvt. Ltd. Company In India

By: Ranvijay Singh

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