Introduction
Registration of a private limited company in India is an organized process which requires much thought and following the guidelines by the Ministry of Corporate Affairs (MCA). Following is the step-by-step process of streamlining the registration process.
Selection and Approval of Name
First of all, choose a unique name for your company reflecting its objectives and which doesn't conflict with any existing company or trademark. After the name is decided, you apply to the MCA for its approval. If the name is accepted, the MCA will issue an approval letter. The approved name remains valid for 20 days within which you have to complete further processes.
Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN)
Every director has to obtain a Digital Signature Certificate (DSC) and a Director Identification Number (DIN). DSC is a secured digital key that authenticates electronically submitted documents, and DIN is an identification number issued by the MCA to every potential director.
Preparation of Documents
Once DSC and DIN are ready, prepare the documents, including SPICe form to file for incorporation. It involves a Memorandum of Association (MOA) detailing the constitution and purpose of the company, Articles of Association (AOA), which stipulate rules for conducting the affairs of the company, INC-9, which is the declaration by the first subscribers and directors, and DIR-2, which is a consent to act as a director.
Ensure these documents are correctly drafted and signed by the concerned directors. The DSC of the directors and that of a CA, CS, or CMA is to be placed wherever applicable.
Submission and Approval
Once all the documents are prepared, they will be submitted to the MCA online portal. It takes roughly 20 days for processing, after which the MCA will study the application along with the submitted documents. If all goes as per requirements, then the company gets registered and a Certificate of Incorporation is issued to the same. The certificate serves as evidence of the company's existence.