Private limited company is a privately held business entity and by registering your business as a PVT. LTD. company, you have taken your first step in the corporate world. A Private Limited Company offers limited liability & legal protection to its shareholders. It is an efficient structure that limits your total liability to the amount of capital invested. One should note that such benefits are not available to sole proprietors, who face unlimited liability. Private Limited company is incorporated under the Companies Act of 2013 & governed by the MCA (Ministry of Corporate Affairs). It is known as registered corporate structure, that provides business a separate legal identity from its owners.
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4 Steps to Register Private Limited Company
The first step to register a private limited company is to acquire the DSC (Digital Signature Certificate) of the Directors& Subscribers to MOA. Any e-form is filed with the Ministry after affixing the DSC of the Authorised Signatory for Company Incorporation.
Under this step, the DIN allotment is carried out by the Ministry to the Individual for acting as Director in a company. DIN is unique such as PAN Card to any person and which is applied and allotted once in the lifetime.
The third step in company registration involves making an application for reservation of name for the proposed company. In Form INC-1 the application is to be made, where one can apply for a maximum 2 names in order of their preference. Keep in mind that your name should be unique and not identical or nearly resembling with any existing Company. Once the applied company name is approved, it is reserved for the applicant for a period of 15 days.
Once an appropriate name is acquired and reserved, the Company must apply for incorporation. After that file, an online application for registration of a private limited company. After the submission of application, form for application of PAN & TAN of the company is generated online, which shall be duly submitted after affixing the DSC with MCA.
After filing the above-mentioned documents and payment of necessary fees, the certificate of Company incorporation would be issued by the Registrar of Companies.
When a company receives the Certificate of Incorporation, it becomes a legal entity and can start working as a Private Limited Company within India.