Incorporating a Private limited company

Introduction

Private limited companies are considered very important to start a business by startups and businesses. Under the Companies Act 2013, the private limited company is incorporated and it is governed by the ministry of corporate affairs. It is a corporate structure which gives a separate legal entity to the owners of business. It has to get registered with a minimum of two directors or shareholders. A person can be both of them as well. 

Under Section 2(68) , private limited Companies says: 

  • By which the articles of private limited company restrict the right to transfer the shares of the company. 
  • The number of its members is limited to 200.
  • Any invitation to the public is prohibited to subscribe or get any securities of that particular company. 

Process or Procedure of Incorporating a private limited company: 

  1. An application has to be filled for the reservation of name:

For incorporating a private limited company, a RUN form has to be filled for that a payment of Rs 1000/- has to be made as government fee. The names thought by the persons can be similar because two persons can think the same names. If the names are similar, then MCA can reserve the name for 20 days and the RUN form has to be filled again and resubmitted. So the names should have a trademark or LLC taken from the company if it comes out to be similar. 

Even a name can be applied for in the form Spice-32, and this can only be done if the name is really unique and should not be similar with any trademark or company. 

  1. There has to be Digital signature certificates (DSC)which should be obtained.

Once the name of the proposed company gets approved, then the next step would be to obtain a DSC certificate. These certificates should be taken from the directors and subscribers. 

  1. Incorporation Documents has to be prepared

To be a document for incorporation, we have to study the KYC documents and on that basis the incorporation must be done. Information must also be taken from the proposed directors and subscribers. 

  1. E- forms : Filling of various forms, their information and how to fill the forms for Incorporating a private limited company

Listing the E-Forms which come under MCA and are needed to be filled up to incorporate a private limited company. 

  • SPICE FORM 32 : To fill this form, these are the details which have to be filled properly and carefully in this form. The unique name of the proposed company should be given. The incorporation from where you are doing has to be given. The name of the registered company along with its address has to be mentioned. Once you think of the name of your proposed company, its email id, telephone number and fax number has to be given. The company’s authorised and subscribed capital has to be filled in the given form.

When you are applying for the form, the subscribers and directors who are present with you ,their names also have to be mentioned. Name, father’s name, date of birth, aadhar card number and pan card number or passport number, occupation, nationality, email id, place of residence must be mentioned everywhere. These are the common details which should be present in the form for each and every person. Permanent address and telephone number should also be present. The number of shares subscribed , designation and category of the directors should be written in the form. 

  • There must be information which is specific to PAN and TAN such as area code, AO type, range code and its allotment. Income source of the company, capital gain, income from house property everything should be mentioned. At last there must be a declaration which has to be given under Companies Act 2013 saying that all the information given are true to the best of the knowledge and has to be complied with. 
  • While submitting this Spice E-form, there are few attachments that need to be done, that is the utility bill, last deed rent or agreement of the registered company and NOC from the owner. 

Once everything is done, the company will file an INC-22 form within a period of 30 days to incorporate for verification of the registered office. 

  • FORM INC- 33: This is a combination of Spice E and MOA. 

This form also contains the same information as Spice Form and the details would be the same as the above. Two things which are needed to be filled here are the Liability of the company members and share capital of the company.

  • FORM INC-34: This is a combination of Form spice and AOA. This form is basically for the management regulations.
  • E- FORM INC-9 : This is a declaration form which is filled by the directors and subscribers. This has to be filled only after affixing digital signature certificates. 
  1. At last, the certificate of incorporation has to be issued

The filled forms, its attachments and declarations are approved and verified by the registrar and if all the documents are filled properly and clearly and it fulfills all the requirements of Companies Act, 2013, then the certificate of incorporation is issued.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

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