Private Limited companies are profit-earning companies owned by a group of individuals or associations, with liabilities limited to their stakes in the company. The minimum and the maximum number of shareholders in a private limited company are 2 and 200, respectively. A private limited company has to be managed by at least 2 directors. There is no minimum requirement for paid-up capital for the company to get registered.
Step 1: search for a valid name for your company and reserve it:
The name of your company must be such that it does not mimic the name of an existing company, visually or phonetically, especially if the name is registered as a trademark. Further, the name of the company must not be misleading so as to appear or sound like a government website or a website that has received patronage from the government, as such a name will violate section 3 of the Names and Emblems Act, 1950. The name should also not be obscene or vulgar in any form.
Once a valid name of the company is decided, it needs to be reserved. Reservation of the company’s name can be done using two applications, the web-based RUN application available on the MCA portal or Part A of the SPICe+ application. The application fee for either form is Rs.1000. The proposed names on the RUN application take 15 days to get approved and 60 days to get reserved for the company, from the date of submission of the application. The applicant receives one chance to resubmit the form again if any discrepancies arise, after which it will be approved or rejected.
Step 2: acquire and register DSCs for all directors and shareholders of the company:
DSCs can be applied using Aadhaar-based and PAN-based online application forms available on the official websites of the certifying authorities. The Aadhar-based application does not require any physical documents to be uploaded as proofs since all the details of the applicant are already verified in the Aadhar database. To confirm the contact details of the applicant, an OTP-based verification
However, the PAN-based application requires the applicant’s PAN card and address proof to be scanned and uploaded, for the verification of the identity of the applicant. The contact details of the applicant are, however, verified using one-time passwords.
If the applicant is a foreigner, a passport is required to be submitted as an additional document with either application.
After the documents and the application are submitted, a link is sent to the e-mail address of the applicant. The applicant is required to shoot and upload his video on the landing page, to be verified by the certifying authority. Once verified, the DSC is received at the e-mail address of the applicant. It can be downloaded and stored in a password-protected token. The following details are required to be filled in the application form for a DSC:
Step 3: Fill and submit the online SPICe+ form signed using a DSC:
SPICe+ is an online application form that integrates more than 10 e-services from the Ministries of Corporate Affairs, Labour, and finance.
PART A: contains an application for reservation of the name of the company. You cannot enter an already reserved name by the RUN application in the SPICe+ form. An application fee of Rs.1000 is chargeable for reserving the name of the business through the form.
PART B: Part B contains 10 integrated e-services, including the application for the Certificate of Incorporation for the business.
Step 4: Upload all the necessary documents and linked forms attested by a DSC:
Step 5: After the application and documents are verified, the applicant receives the Certificate of Incorporation and Corporate Identification Number (CIN) from the Registrar of Companies.
The MCA has allowed Zero filing fees for businesses having a share capital of Rs.15 lakhs and less. For companies without share capital, no charges will be levied if the number of members is 20 or less. Beyond Rs.15 lakhs share capital or 20 members, a fee of Rs.500 is charged.
Name reservation charges: Rs.1,000
MOA charges: For OPCs having a share capital between Rs.15 lakhs and Rs.50 lakhs, Rs. 51000 is charged with additional fees of Rs.300 for every Rs.10,000 beyond Rs. 15 lakhs. For non-OPC having a share capital within the same, the amount charged is Rs.12000 in addition to Rs. 200 for every Rs10,000, above Rs.15 lakhs.
For share capital between Rs.50 lakh and 1 crore, companies are charged Rs. 1,56,000 added to Rs.100 every Rs.10,000 beyond Rs.50 lakhs.
For a share capital beyond Rs.1 crore, Rs. 2,06,000 is charged, with an added Rs. 75 for every Rs.10,000 beyond 1 crore.
For companies not having a share capital, but having 20-2000 members, Rs.5000 will be charged. Rs.5000 added to Rs.10/member beyond the first 200 members will be levied for companies without share capital.
AOA charges: For businesses having a share capital up to Rs15 lakhs, no fees are charged. For share capitals between Rs.15 lakhs and 25 lakhs, 25 lakhs and 1 crore, and more than Rs.1 crore, a fee of Rs.400, Rs.500, and Rs.600 are charged, respectively. For businesses not having a share capital, Rs.200 per document to be submitted is charged if the number of members is beyond 20. Below 20 members, no fee is charged for submitting an AoA.