Know The Basics On How To Create A Private Limited Company

Know The Basics On How To Create A Private Limited Company

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:

  1. 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.
  2. 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
  1. Registered Office Address: The permanent address of the registered office has to be filed with the ROC.
  2. 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.

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