Forming A Private Limited Company

Forming A Private Limited Company

The minimum requirements to form a private limited company are a minimum of 2 shareholders and 2 directors; they could also be the same person.

The minimum share capital has been fixed as Rs.100, 000 (INR One Lac)

A Director Identification Number (DIN) is necessary for all directors and Digital Signature Certificate (DSC) is necessary for one of the directors.

Steps involved in formation of private limited company:

The first step is the DSC or Digital Signature Certificate that could take 2 days and requires the address proof and identity proof to be self attested by a director of the private company.

The next step is to apply for the DIN or Director Identification Number involving certification and attestation of directors' personal details and sending it to the DIN cells for final approval and action. This step could take about 5 days.

The third step is the prename application by the company; best done with online search by promoters. At least 6 names are to be submitted by the promoters in the order of priority.

The fourth step is the final application for the name that the submission of the Object Clause; the objects to the pursued by the company after being registered. It could take 6 days.

The next step is the representations before the Registrar Of Companies on behalf of promoters that takes about a day when changes are made in the name application according to suggestions of the Registrar Of Companies.

The sixth step is the printing of the altered Memorandum and Articles Of Association; they are to be vetted by promoters and processed in e-forms. The other forms and documents that are to be submitted include Form 32, Form 1, Letter Of Authority, and Form 18.

The seventh and final step includes filing all the documents after alterations suggested by Registrar Of Companies. It is also necessary to upload online e-forms, collect the Certificate of Incorporation after paying the registration fees.

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