A private limited company is a business structure created with at least two directors and two shareholders. In such a firm, the shareholder’s liability is limited only to the number of shares held by him. There are several benefits of a private limited company like limited liability for members, permanent legal existence, and a separate legal identity. If you want to form such a business entity, you should know the basic steps on how to create a private limited company.
Minimum Requirements For Forming A Private Limited Company
The following are the minimum requirements for registering a private limited company:
- No of members and directors: The Companies Act, 2013 makes it statutory for the company to have minimum two and maximum 200 members. The directors should have a DIN (Director Identification Number), and one director needs to be an Indian resident.
- Company name: The name of the company should be approved by the Registrar of Companies (ROC) and should cover the following:
- The primary name
- The activity of the firm
- It should mention ‘Private Limited’ at the end
- Registered Office Address: The permanent address of the registered office has to be filed with the ROC.
- Documentation: Documents can be submitted electronically with a digital signature needed to verify the authenticity.
Procedures On How To Create A Private Limited Company
Here are some of the processes which you should know before creating a Private Limited Company:
- Apply for a Digital Signature Certificate (DSC)
- Obtain a DIN (Director Identification Number)
- Apply for the company name availability
- File the EMOA and EAOA for registration of the firm
- Make an application for the PAN and TAN for the firm
- The ROC will issue the certificate of incorporation together with PAN and TAN
- A current account can be opened in the firm’s name
How Can We Help?
The team of 3E Accounting India team is very experienced in all the legal formalities for forming a private limited company. We will help you with the company registration process and will make the process of India Company Incorporation smooth for you.