Forming a Private Limited Company in India is a complex process that requires careful planning and execution. In this section, we will provide a more detailed guide on each step involved in forming a Private Limited Company in India.
Step 1: Obtain Digital Signature Certificate (DSC)
The first step in forming a Private Limited Company is to obtain a Digital Signature Certificate (DSC) for the proposed directors of the company. A DSC is an electronic signature that is used to sign documents electronically. The DSC can be obtained from government-approved agencies such as Certifying Authorities (CA).
To obtain a DSC, the proposed directors must fill out an application form and submit it along with their identity proof and address proof documents. Once the application is processed, the Certifying Authority will issue the DSC to the applicant.
Step 2: Apply for Director Identification Number (DIN)
The next step is to apply for a Director Identification Number (DIN) for the proposed directors of the company. The DIN is a unique identification number that is required for all directors of a company. The application for DIN can be made online through the Ministry of Corporate Affairs (MCA) website.
To apply for DIN, the proposed directors must fill out an online application form and submit it along with their identity proof and address proof documents. Once the application is processed, the MCA will issue the DIN to the applicant.
Step 3: Choose a Company Name
The next step is to choose a name for the company. The name should be unique and should not be similar to any existing company name. The name should also comply with the guidelines of the Companies Act, 2013.
The proposed name can be checked for availability on the MCA website. If the name is available, it can be reserved by filing Form SPICe+ Part A along with the required fees.
Step 4: Draft Memorandum and Articles of Association
The Memorandum of Association (MOA) and Articles of Association (AOA) are two important documents that define the scope of activities and the rules and regulations of the company. These documents need to be drafted and filed with the Registrar of Companies (ROC).
The MOA contains the main objectives of the company and the AOA contains the rules and regulations for the internal management of the company. These documents can be drafted with the help of a legal professional or a company secretary.
Step 5: File Incorporation Documents with ROC
After obtaining the DSC, DIN, and drafting the MOA and AOA, the next step is to file the incorporation documents with the ROC. The incorporation documents include Form SPICe (INC-32), which is a simplified form for incorporating a company in India.
The incorporation documents must be filed online on the MCA website along with the required fees. The documents must be signed by the proposed directors of the company and must be verified by a professional such as a company secretary or a chartered accountant.
Step 6: Obtain Certificate of Incorporation
Once the incorporation documents are filed and approved by the ROC, a Certificate of Incorporation (COI) is issued. The COI is a legal document that confirms the existence of the company.
The COI contains important details such as the name of the company, the date of incorporation, the registered office address, and the CIN (Corporate Identity Number) of the company. This document is required for opening a bank account, obtaining licenses, and for other business activities.
Step 7: Apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN)
After obtaining the COI, the next step is to apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. The PAN