After you have decided to start your own business, Which one should I choose? Sole Proprietary, Partnership, Private Limited Company, One Person Company (OPC), Limited Liability Partnership (LLP) or Public Limited Company.
There are option to register your company as a Pvt Ltd Company Registration. But its confusing to a new entrepreneur.
1. Name Your Business:
You have to first decide a name for your company. The name of the business should be unique and memorable. You must provide at least one (maximum 6) name(s) to the registrar of companies. The availability of names will be checked by the registrar. The name should contain and object. You cannot just name “ABC Private Limited”. It will be rejected. Instead you should consider naming it “ABC Software Solutions Private Limited” or “ABC Travel and Tours Private Limited” etc. You can also directly check the availability of names
2. Register For e-Filing at MCA Portal:
This is the next step that you have to take as the business owner. You have to first register as a user at the Ministry of Corporate
3. Apply for Director Identification Number (DIN):
All the existing or intending directors of the company must obtain a Director Identification Number (DIN). You can download the form online and it must be signed by the promoters.
4. Get a Digital Signature Certificate (DSC):
The Digital Signature is required on all documents that are submitted in the electronic form. This is to ensure security and authenticity of the documents.
5. Register DSC at MCA Website:
The DSC obtained has to be registered at the Ministry of Corporate Affairs (MCA) Website.
6. Apply for the approval of your company name:
Now you have to get approval for your company name from the registrar of companies. The name approval is sought by filing eForm-1A. This form requires a Digital Signature of one of the Promoters. Some of the details that are required on the form are as follows:
a. Authorized capital for the proposed company
b. Main objectives of the proposed company
c. Location of the proposed company
d. Copy of trademark application/certificate (if applicable)
e. In case, there is a logo associated with trademark then image of logo
f. Balance sheet (if applicable) and Income tax returns for last 2 years
g. If, the Registrar of Companies approves the proposed name, a letter stating the acceptance of the proposed name is issued. If name is rejected then candidate has to reapply for the approval of name of the company.
7. Formulate Memorandum of Association:
This is the next step where you have to form the Memorandum of Association which is the purpose of forming the company.
8. Formulate Article of Association:
This (AOA) can be easily prepared under guidance of any Lawyer or Chartered Accountant.
9. Verify, Stamp & Sign AOA:
After careful examination of the MOA and AOA, the Registrar of Companies must verify them.
10. Additional steps for Formation of Public Limited Company:
Some additional forms have to be submitted to the Ministry of Corporate Affairs and Registrar of Secretaries for incorporating a public limited company. They are:
a. eForm-20, to be filled and submitted by the director or company secretary.
b. Statement in lieu of Prospectus to be submitted to the Registrar of Companies
c. Affidavit from each director stating that the Company has not commenced its Business to Registrar of Companies
d. Board resolution for approval of preliminary expenses, appointment of first auditors (also enclose their consent letter) to Registrar of Companies
10. Registered Office Address:
You need a Private Limited Company Registration for your company. You should produce rent agreement, NOC from Owner of the building, Utility Bill etc. to show as proof of occupancy.
The Registrar of Companies thereafter shall process the documents and if all the documents are in order then it will issue a Certificate for Commencement of Business
