Today’s entrepreneurs like the Private Limited Company business structure the most. To ensure a successful incorporation, you should be aware of some dos and don’ts while setting up a private limited business.
Under the Ministry of Corporate Affairs, Private Limited Companies are controlled under the Companies Act, 2013. (MCA). The MCA has simplified the company registration process, which has improved how simple it is to conduct business in India.
A company may be constituted in accordance with Section 3(1) of the 2019 Companies Act by:
If the company must be a public company, there must be seven or more people.
If the business must be a private company, two or more people.
The Directors Identification Number, or DIN, has eight digits. Each candidate who is chosen to serve as a director of the organisation must submit an application in e-Form DIR 3 together with the suggested costs, per Section 153 of the Companies Act of 2013. However, the SPICe Form will be used to submit requests for the designation of DINs to the anticipated initial directors of new entities.
A passport-sized photo, a copy of the applicant’s PAN card, and a self-attested copy of their address proof are needed for DIN.
Digital Signature Certificates serve as a secure digital key that verifies the certificate holder’s identity. A digital certificate can be used to sign papers electronically, access data or services online, and validate one’s identity. The MCA has made it simple to register a corporation online, thus each subscriber’s DSC is necessary. The e-MoA and e-AoA must both bear the digital signatures of the subscribers and witnesses.
Using the linked link, confirm that the organization’s chosen name is present on the MCA Company Name Search website.
The RUN web service also allows the planned name of the organisation to be stored. It’s easy to use the RUN (Reserve Unique Name) web administration to reserve a name for a new business or to rename an existing one. The applicant must also submit an RUN application to reserve the desired organisation name and pay any applicable fees. The Central Registration Center will then handle the application (CRC).
Memorandum of Association (MoA) refers to the company’s charter. A corporation’s connection with shareholders is outlined in this formally approved document, which was created during the creation and registration procedure. It also outlines the purposes for why the company was established.
The internal management of a firm is outlined in the Articles of Association (AoA). It specifies the responsibilities, privileges, and authority of the company’s management. Similar to that, it is a legally recognised document created as part of an organization’s formation and registration process to characterise its relationship with investors and to specify the goals for which the firm has been established.
The SPICe Form (INC-32) is used for single applications for name reservations, new company incorporations, DIN allocation applications, PAN applications, and TAN applications. Additionally, this e-Form is accompanied by supporting documents like a MoA and AoA, a list of the Directors and Subscribers, etc.
The firm will be registered and its CIN assigned once the e-Form has been reviewed and deemed complete. Additionally, potential directors who don’t already have a valid DIN are provided one. Additionally, three directors are permitted to submit applications for the allocation of DIN using this integrated form when forming a firm. Additionally, the company would be awarded a PAN and TAN.
The SPICe Form must be submitted to the Registrar of Companies with the following supporting documentation:
First directors’ statement on Form DIR-2
Directors’ statement regarding credits
Verification of DIN by proposed directors
Articles of Association (can be recorded as eMoA in Form INC 33)
Association By laws (can be recorded as eAoA in Form INC 34)
The director’s declaration of any necessary sector regulator approvals
Proof of the registered office address
Proof of each subscriber’s identity and address
Application for a GST number, ESI and EPF registration, and Employees Provident Fund (EPF) registration are made using Form AGILE. Similarly, startups can apply for a GSTIN, an Establishment Code supplied by EPFO, or an Employer Code provided by ESIC through an e-form if they want to register their businesses with SPICe (INC-35).
Companies that were incorporated under the MCA using the SPICe application can use this procedure. Similar to this, various application categories for GSTIN (such as Tax Collectors, Tax Deductors, Casual Taxable Individuals, ISDs, and so forth) should continue with the current process of signing up through the shared platform for GST registration.
For quotation of above or for any other query you may contact the author at 9899595719 or firstname.lastname@example.org
Disclaimer: The above article is only for information purpose and is on based on the author’s interpretation of the relevant provision. The same should not be considered as professional advice.