Introduction

Incorporation of a limited company refers to declaring a corporate entity separate from its owners. It is a legal procedure and the second step towards the formation of a company. The first step is a promotion which is followed by incorporation. It is the process of getting incorporated with the registrar of the company by filing multiple documents such as a memorandum of association (MOA), articles of association (AOA), etc. Its benefit is that it protects the owner’s interest in the liabilities of the company.

 

Private Limited Company

Shareholders requirement

Shareholders are those who purchase shares and play a major role in the company. A minimum of two shareholders is required for Pvt limited company registration whereas its maximum limit goes up to two hundred shareholders.

 

Director’s requirement

For incorporating a Pvt limited company a minimum of 2 and a maximum of 15 directors are required. Any individual who has attained the age of 18 years or more can become a director of the company. However, there is no problem with the residential status of a person. Every director is given a director identification number (DIN) which never expires.

 

The time duration for incorporating a company

You can get Pvt limited company registration in India within 2 to 6 weeks. Basically, the procedure for incorporation depends on document submission and government approval guidelines. If you wish to do quick registration then make sure you choose a different and unique name for your company and that you have all the required documents.

 

Process

  • Obtain digital signature: -A company must apply for a digital signature before incorporation. A digital signature is needed to copy all the documents and certificates. Therefore it essential for every director to have a digital signature.
  • Obtain director identification number: Under sec 159 of the companies act, every director needs to obtain an identification number from the central government. Therefore every director should have DIN before submitting the documents for incorporation. If any director doesn’t have DIN, they cannot apply for incorporation.
  • Name approval: Every company must think of a unique and different name for its company. They have to submit the list of 5-6 names in accordance with the preference to ROC (registrar of the company). If the ROC is satisfied with the name then you will obtain a name approval letter. The applicant cannot begin working or enter into an agreement until he or she receives a letter of name approval from the ROC.
  • Preparation of MOA and AOA: Memorandum of association (MOA) and articles of association (AOA) must be prepared by the company. Memorandum of association is a document containing the objects and powers of the company. Articles of association is a document containing the rules and regulations for the internal management of the company. These two documents are very essential to prepare as they are the charter and rules and regulations of the company.
  • Application for the incorporation: After completing all the above steps, you can file an application for incorporation of the company. The application should be filed with the ROC with form 7 and form 22. Form 7 is a detailed statement about the company’s memorandum of association (MOA) and articles of association (AOA). Proof of residential address, NOC proof of identity, if there is a change in promoters, pan card should also be attached with the application.
  • Receiving the certificate: After the filing of all the above documents if the registrar is satisfied with all the documents then they will issue a certificate of incorporation in form 11. After receiving this certification, can move to other steps information of the company