Private Limited Company

Private Limited Company (PLC) is a company for small and medium enterprises. It limits the owner’s liability and restricts them from publicly trading shares. A maximum of 200 shareholders can be there at one time. 

How To Register A Private Limited Company?

Registering a Company is quick, easy, and can be done online with Lawwale in 3 simple steps:

We help you register your directors with the Ministry of Corporate Affairs (MCA)
Step 1

We help you pick the right company name
Step 2

We draft and file the documents required for your company registration (MoA and AoA)
Step 3

Benefits of Private Limited Company

Services Provided for Private Limited Company

NAME RESERVATION

The law has provided certain rules for naming a company. Names that do not comply with the regulations will not be accepted by the MCA. The company name should have 3 parts. The first is a special or quality word, the second is any suffix and the third is a private limited or public limited company (OPC). Private Limited Company name must end with “Private Limited”. Also, the name should not be the same or equivalent to another company or LLP.

Reserve Unique Name (RUN) is a web service used to rename or change the name of a new company. A web service can help you verify that the name you choose for your company is unique.

Names that can be reserved under the RUN(Reserve Unique Name)

The following table gives the details regarding the types of companies names that can be reserved along with their respective suffixes:

Sr.No. Company Type Suffix Required
1. Private Limited Companies Limited / Company
2. Section 8 companies Private Limited
3. IFSC Company IFSC Limited /IFSC Private Limited 7. One Person Company (OPC) Private Limited
4. Unlimited Company Unlimited Company
5. Nidhi Company Nidhi Limited
6. Producer Company Producer Company Limited
3. IFSC Company IFSC Limited /IFSC Private Limited 7. One Person Company (OPC) Private Limited

The validity of the reserved Company names

The Central Registration Centre (CRC) may on the basis of information and documents provided, reserve the name for a period of:

  • 20 days from the date of approval if in case the name is being reserved for a new company. 

  • 60 days from the date of approval if it includes a change in the name of an existing company.

Director Identification Number (3 Directors)

What is DIN?

DIN is a unique Director identification number allotted by the Central Government to any person intending to be a Director or an existing director of a company.  

It is an 8-digit unique identification number which has a lifetime validity. Through DIN, details of the directors are maintained in a database.

DIN is specific to a person, which means even if he is a director in 2 or more companies, he has to obtain only 1 DIN. And if he leaves a company and joins some other, the same DIN would work in the other company as well.

Purpose of a DIN

The Director Identification Number provides a unique identity to the director and helps in maintaining information of all directors in a database. In past decades, several Indian cities have had chit fund companies promise its residents incomparable returns, then escape with their money to another city.

To be able to cross-check such persons, and to ensure the director’s identity is valid and all information provided is true, the government introduced the DIN. Accordingly, the DIN directory will contain all information regarding the directors, such as their name, PAN number and also their present address. Any change in the address or other information needs to be updated immediately.

Digital Signature Certificate (3 Directors)

Digital Signature is an electronic format of your physical signature, is required to sign e-forms like filing income-tax returns, company incorporation, Annual return filings, and e-tender filing, etc.

Digital signature, as the name suggests, is an electronic equivalent of physical signatures, as they verify the identity of the sender of an electronic document. Such signatures are verified by a Certifying Authority, which also provides the sign holder with both a private key (used by the holder to encrypt their signature onto a document) and a public key (used by the receiver to verify the signature of the holder on an electronic document).  Nowadays, Digital signature is not used only to verify communications between individuals, but also to carry out online transactions such as Income Tax e-Filing, Company Incorporation, etc. Digital Signatures come in the form of a USB E-Token, wherein the Digital Signature Certificate is stored in a USB Drive and can be accessed through a computer to sign documents electronically. Think of the USB e-Token as the digital equivalent of a rubber stamp– connect it to a computer, sign the document in question, and you’re done! The DSC is a certificate issued by a Certifying Authority which also generates the public and private key for your Digital Signature.

With e-Filing becoming mandatory in increased spheres, Digital Signatures have become more pervasive in the market, out of the sheer necessity of having one. Register for our service to avoid the hassle, yet reap the ease of a digital signature!

Types of Digital Signature

There are currently three classes of Digital signatures:

Class 1 – required for verification via email communication.

Class 2 – has been made compulsory for every Director/Signing authority who signs documents to be filed with the Registrar of Companies to have. It is also required by individuals to e-file Income Tax returns.

Class 3 – heavily encrypted, this class of signatures is employed for use in online tenders/auctions that are held across India.

Benefits of disclaimer

  • Reduces Cost and time
  • Boosts data and integrity
  • Increases workflow efficiency
  • Improves customer experience

Certificate of Incorporation

Certificate of incorporation is a legal document required at the time of company formation. It is said to be a license to form a company, issued by the state government. The private limited company in India is measured by the shares that a shareholder is only liable to a limit of creditors. A Pvt. Limited companies cannot offer their share to the general public, so it cannot trade on the public stock exchanges, the main difference between a Private limited and public limited company. The private limited company has to suffix limited or incorporation as the name is the reason for the lid or inc written at the end of the company name.

For registration as a private limited company certificate of incorporation is the last step, which is mailed after the approval of all documents required for the company formation. 

Private company registration or Company formation includes mainly 7 steps that are:-

  • Filling application for DIN and DSC that are Director Identification Number and Digital signature Certificate
  • Selecting and checking and then applying for availability of the name selected
  • Drafting of MOA and AOA that are Memorandum of association and article of association respectively
  • Filling of E-forms with Registrar of companies
  • Registrar of companies’ fees and stamp duty has to be paid for it.
  • All verification of the documents/forms by Registrar of companies
  • After all these, Certificate of Incorporation is issued to director of company

MOA & AOA

MOA

A Memorandum of Association (MoA) refers to the organization’s charter. It is a legal document prepared at the time of formation and registration of a company to define its relationship with the shareholders and it specifies the objectives for which the company is formed. The organization can only initiate the activities specified in the Memorandum of Association. For example, MoA transcends the limits of an organization’s actions.

The Memorandum of Association helps shareholders, lenders and anyone working with the organization to know the fundamental rights and powers of the organization. In addition, MoA’s content can help potential shareholders make the right decisions by thinking about investing in the company.

In the case of a private limited company at least 2 members and in the case of a public limited company 7 members must sign the MoA.

 

AOA

 The Article of Association (AOA) talks about the rules and regulations for the internal management of the organization. It specifies the functions, rights and powers of the management of the company. The article of the association helps the Memorandum of Association (MoA).

A memorandum of association sets out the goals of the organization, while the Article of the association follows the organization’s internal guidelines for achieving these goals. The article of the association brings clarity to the relationship between shareholders and the organization and among shareholders themselves. The Article of the Association contains provisions relating to share capital, transfer of shares, shareholders’ right to vote, appointment of directors, accounts, organization’s audit, etc.

Checklist (Required documents)

The required documents are as follows:

 a). Individual shareholder documents (directors and / or nominees):

  1. Passport size photo
  2. PAN Card – Self Attested Photocopy.
  3. Aadhar Card – Self Attested Photocopy.
  4. ID Proof – Self Attested Photocopy.

Any of the following:

  • driving license; Or
  • Voter ID; Or
  • Passport.

Things to note:

– No other document other than those mentioned above can be accepted as ID proof of Directors and Nominees.

– All copies of documents have to be clear (preferably scanned copies) and self-certified.

  1. ADDRESS Proof – Self attested photocopy.

Any of the following:

  • electricity bill; Or
  • Phone / Mobile bill; Or
  • Bank Statement (First and Last Page of Passbook)

Things to note:

-The document will contain the name and address of the director / nominee.

-The bill should not be older than 2 months.

-If a bank statement is given, it can be a bank passbook or an online net banking statement.

-The transaction in the bank statement is not more than 2 months.

-Copies are clear (preferably scanned copies) and self-verified.

 

b). Documents required in case if any of the stakeholders is not an Individual (any body corporate) :

  1. PAN CARD of Company – photocopy having round seal and signature of Authorised Person
  1. Board Resolution/Letter of Consent

Points to be noted:

  • No other document other than the above can be accepted
  • All the copies of documents shall be clear (preferably scan copies) and shall have a round seal and signature of the Authorised Person.
  1. ADDRESS PROOF – photocopy having round seal and signature of Authorised Person.

any one of the following:

  • Electricity Bill; or
  • Phone/Mobile Bill;

Points to be noted:

  • The document shall have the Name and Address of the Director/Nominee.
  • The bill shall not be more than 2 months old.
  • If a Bank statement is provided, it can either be a bank passbook or an online net banking statement.
  • The transaction in the bank statement shall not be more than 2 months old.
  • The copies shall be clear (preferably scan copies) and shall be self-attested.
  1. Other Documents depending on case to case.

II. Documents of Registered Office :

  1. ADDRESS PROOF OF OFFICE/PLACE of BUSINESS:

any one of the following:

  • Electricity Bill or B. Phone/Mobile Bill;

Points to be noted:

  • No other document can be accepted other than the utility bill
  • The document will have the address of the property to be used as Registered Office Address.
  • The bill will not be more than 2 months old.
  • It will be signed by the person whose name is mentioned on the Bill.
  • The copies have to be clear (preferably scan copies) and shall be self-attested.

*Ensure that all the documents are SELF-ATTESTED.

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