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Incorporation of a Private Company in India
A Private Company is an entity registered under the Companies Act, 2013. The Ministry of Corporate Affairs (“MCA”) oversees the incorporation of Private Companies in India. Registering a Private Company is essential to take advantage of the tax benefits provided by the MCA. The common types of private companies include sole proprietorships, partnerships, and limited liability companies.
Key points for consideration
- Governing Act- Private companies are governed by the Companies Act, 2013.
- Member- Minimum 2 members and maximum 200 members are required to establish a private company in India.
- Directors- Minimum 2 and maximum 15 directors are required in a private company. However, for more than 15 directors, the company needs to pass the special resolution, and they need to appoint one resident director.
- Subscription of shares- Public subscriptions are not allowed in a private company.
- Issue of prospectus- It is not mandatory for a private company to issue a prospectus.
- Annual Statutory Filings- A private company is required to file annual statement of accounts in Form AOC-4 and annual return in Form MGT-7 with the Registrar of Companies.
Documents required to establish a Private Company
- Articles of Association (“AOA”).
- Memorandum of Association (“MOA”).
- Proof of registered office address, lease agreement, No Objection Certificate (“NOC”) from the owner, and utility bill not older than 2 months.
- Consent or Declaration Form from the director and subscriber.
- Proof of identity and address of subscriber, Nominee Director and Director(s), and
- Proof of identity and address of the witness to MOA and AOA (not required in cases where the witness is a professional, such as Chartered Accountant/ Company Secretary).
- Director Identification Number (“DIN”)
- Digital Signature Certificate (“DSC”)
- Shareholding Pattern of the Proposed Company
Registration Regime of a Private Company
- Select and Reserve a Company Name: The primary step is to choose a unique name for registration by checking availability MCA.
- Designate a Registered Office Address: Secure DSC and DIN: The Companies Act, 2013 mandates a private company to have a registered office address in India for it’s operations. It is necessary to choose a registered business address for the company.
- Apply for DSCs and DINs for the company’s directors: These digital signatures and identification numbers are essential for legal compliance.
- File e-Memorandum of Association (“eMoA”) and e-Articles of Association (“eAoA”): Prepare and file the eMoA in INC- 33 and eAoA in INC-34, which outlines the company’s objectives, rules, and regulations, for the purpose of registering private limited company.
- Apply for PAN and TAN: Apply for the company’s Permanent Account Number (“PAN”) and Tax Deduction and Collection Account Number (TAN), as these are essential for taxation and financial transactions.
- Gather Other Required Documentation: Collect any additional necessary documents, including proofs of residence, notarized rental agreements, NOC from property owners (if applicable), and copies of property deeds (for owned properties).
How we can help?
Our services include assisting in the establishment of a company in India by providing guidance on the necessary documents, such as identity proof, address proof, PAN cards, and all necessary documents required for directors and shareholders, along with address proof for the registered office.
Additionally, we offer support in navigating the complexities of obtaining a DSC and DIN, which are essential for company registration. Our expertise ensures a smooth and efficient incorporation process, saving time and effort.
For more information or queries, please email us at
[email protected]
