Most of the businesses are running in India in form of a Private Limited Company. Section 2(68) of Companies Act, 2013 define private company as: "Private company" means a company which by its articles, (i) restricts the right to transfer its shares; (ii) except in case of One Person Company, limits the number of its members to two hundred: Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member: Provided further that— (A) persons who are in the employment of the company; and (B) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and (iii) prohibits any invitation to the public to subscribe for any securities of the company;
1. Easy to Incorporate
2. Repute of a Legal entity
3. Ease in funding
4. Minimum Maintenance
5. Ease in operations
A private limited company can be set up with:
1. 2 Directors
2. 2 Shareholders
3. 1 Registered Office
4. 0 minimum requirement of capital
1. Digital Signatures
3. Passport (For foreign Nationals)
4. Residential Proof of directors and shareholder
5. Registered office proof
6. Memorandum of Association (MOA)
7. Article of Association (AOA)
8. Consent and other documents
9. DIR 2
10. Various Declarations under Companies Act, 2013
1. Apply for Digital Signature of proposed members and directors of the Company
2. Ascertain name of the Company and check the availability of the same in accordance with section 4 of the Act and Rule 8 of the Companies (Incorporation) Rules 2014.
3. File name application in PART A of web based form SPICE+, applicant can file two proposed name in this web based form, after approval of name, file incorporation documents again in PART B of web based form SPICE+
4. Alternatively applicant can directly file name and incorporation application together in SPICE plus, by filing PART A and PART B simultaneously but it may be noted that through Spice Plus only one name can be applied and all documents of the Company to be filed in such proposed name.
5. Proposed directors of the Company can also apply for DIN in same form is they are not holding DIN prior to application. Maximum three directors can apply for DIN allotment at the time of application.
6. Applicants needs to submit below given documents with Spice plus • E- Memorandum of Association in form INC 33 • E-Articles of Association in form INC-34 • Proof for Registered Office • Declarations in prescribed format • Id and Address proof for subscribers and directors etc.
7. Spice plus will be submitted along with AGILE-PRO for application of GSTIN, EPFO,ESIC, Profession Tax, opening bank account.
8. After scrutiny by the Registrar at Central Registration Centre, in case of any deficiency the Registrar may call for additional documents or clarification after providing a chance to resubmit form in 15 days, however if all the documents and details are appropriate than Registrar will issue Certificate of incorporation in form INC-11.
What is included in this
1. 2 Digital Signature Certificate (DSC)
2. 2 DIN;
7. Assistance in opening of Bank Account;
8. Certificate of Incorporation;
9. 24/7 assistance;
10. Time to time legal updates;
11. Follow-up with the MCA
1. Can I Incorporate a Private Company with more than 2 Directors?
Yes, minimum requirement is 2, a private company can have maximum 15 Directors.
2. I wish to incorporate a private company with one shareholder?
Minimum 2 shareholders are required for creating a private limited company. But you can opt of creation of one person company if you wish to manage business alone.
3. What is MOA?
MOA is Memorandum of Association, which is principle document of any Company, it contains, the NAME, PLACE, OBJECTS, CAPITAL AND LIABILITY clause which defines business of any Company.
4. What is AOA?
AOA is Article of Association, which lays down the rules and regulations beyond which Company cannot operate.
5. What is DIN and DSC?
DIN is Director Identification Number, which a 6 digit number allotted by Ministry of Corporate Affairs to given unique Identity to each director DSC is Digital Signature which comes in a pen drive like token and it is equivalent to a physical signature
6. What is difference between LLP and Private Company?
|Particular||Limited Liability Partnership||Private Company|
|Act||LLP is governed by LLP Act, 2008||Companies are governed by Companies Act,2013|
|Primary Document||LLP agreement||Memorandum of Association Article of Association|
|Name||Name shall have word “Limited Liability Partnership”||Name shall have word “Private Limited Company”|
|Minimum number of partners/ directors||Minimum 2 Designated Partners||Minimum 2 Directors|
|Maximum number of partners/members||No limit on maximum partners||Maximum 200 with exclusions given in definition|
|Books of Accounts||Within 6 months from end of financial year, prepare statement of asset & liability and shall be signed by designated partners||Within 6 months of end of financial year, prepare Balance Sheet and Profit and loss account to be adopted by members of the Company at Annual General Meeting|
|Annual Return||File E Form 11 within 60 days from end of financial year||File E Form MGT 7 within 60 days from the date of adoption of accounts at Annual General Meeting. AGM should be held prior to 30th September>|
|Statement of Accounts||File E Form 8 within 6 months of closure of financial year||File E form AOC 4 within 30 days from the date of adoption of accounts at Annual General Meeting AGM should be held prior to 30th September|
|Compliance||Lesser Compliance in comparison to Private Company||Various Compliance|