In Business World A private limited company is a business owned by private individuals. Such a setup provides the benefit of ‘limited liability’. This implies as an owner your personal assets will not be liquidated for the debts and liabilities of the company.
Moreover, a company is treated as separate from its owners and can easily attract investments from banks and NBFCs. So, do you also have a budding investment idea and want to set up your own private limited company? In this article let’s see how you can complete your registration online in easy steps.
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6 steps to complete your company’s registration
To set up a legal entity online, you can these steps:
Step 1: Get a Digital Signature Certificate (DSC)
To start with, you must obtain a DSC. It is an online signature required for filing documents. As per the latest rules, all company directors and subscribers to the Memorandum of Association (MOA) must have a DSC.
You can get this certificate from authorised government agencies. It usually takes 2 days and costs vary based on the provider.
Step 2: Apply for a Director Identification Number (DIN)
After DSC, you must secure a DIN. It is a unique number assigned to each director of the company. If you’re forming a new company, you can apply for up to 3 DINs directly in the SPICe+ form (Step 4).
Whereas, if the company has more than 3 directors, additional directors can be added after registration.
Step 3: Reserve the company name
After obtaining a DSC and DIN, now is the time to reserve your company’s name so that no one else can use it. Such a reservation happens through Part-A of the SPICe+ form. Ideally, you should propose two names in case the first one isn’t approved.
Alternatively, you can submit the name reservation along with the company incorporation in Part B of the SPICe+ form. If your chosen name is rejected, you must re-file another SPICe+ form with the prescribed fee.
Step 4: File the SPICe+ Form (INC-32)
Please note that this is the main form for company registration. It combines many processes and expedites the registration process. This form is divided into two main parts:
| Part A of SPICe+ Form | Part B of SPICe+ Form |
| You use this part to reserve the name (as stated in Step 3). | You use this part to incorporate the company. |
SPICe+ INC-32 is a single form that allows you to apply for:
- DIN
- Company name approval
- Permanent Account Number (PAN)
- Tax Deduction & Collection Account Number (TAN)
- Goods and Services Tax Identification Number (GSTIN)
- Other registrations
Fill out the form online and download it in PDF. Then sign it digitally and upload it on the MCA portal.
Step 5: Submit e-MOA and e-AOA
Be aware that e-MOA (Memorandum of Association) is a document that outlines the company’s purpose. On the other hand, the e-AOA (Articles of Association) defines the rules for running the company.
These documents must be submitted digitally as part of the SPICe+ process and signed by all subscribers.
Step 6: Incorporation of a private limited company
Once you submit the SPICe+ form, the system will automatically generate applications for your company’s PAN and TAN. Post-verification of all the details, you will receive the:
- Certificate of Incorporation
- The company’s Corporate Identity Number (CIN)
- Company’s PAN and TAN
You can now start your business operations as a registered private limited company! Whether it’s a tech startup, a manufacturing unit, or an online marketplace, a company builds your business’s credibility and attracts investors.
Important things to remember
- Ensure that all subscribers and witnesses obtain a valid Class-3 DSC from certified authorities. Without a DSC, forms like SPICe+ (INC-32), e-MOA, and e-AOA cannot be completed.
- Up to three DINs can be applied through the SPICe+ form. If more directors require DINs, their appointment must occur post-incorporation.
- Choose a unique name adhering to the Companies (Incorporation Rules) 2014. Conduct a name search beforehand to avoid rejection. Ensure the name complies with MCA guidelines and does not infringe on trademarks.
- Once the company name is approved, proceed with incorporation within 20 days to avoid the expiry of the name reservation. Timely submission prevents additional expenses.
- Fill in all parts of the SPICe+ form (Part A and Part B) accurately. Errors can lead to delays or rejections.
- All forms must be digitally signed and certified by a professional (like a Chartered Accountant or Company Secretary).
Conclusion
A private limited company is a separate legal entity. It offers benefits like limited liability and ease of attracting investments. To incorporate a company, you must:
- Obtain a DSC
- Apply for a DIN
- Reserve the company name
- File the SPICe+ form
- Submit the e-MOA and e-AOA
Please ensure all the details are accurate and uploaded documents are digitally signed.