Steps to form a Private Limited company
A Private Limited company is a Company or a small entity which is held privately. And it limits the liability of the owners to their shares i.e. in case of loss occurred by the company in future then the owners will only liable to their shares. In Private Limited company minimum shareholders should be two and maximum 200 shareholders should be there, and they are restricted to trade their shares publically.
Advantages of Forming Private Limited Company
- That forming a private limited company limit the risk to the personal asst of the owner. Therefore if a company is a small entity then it is always recommended to form a Private Limited Company as there is no ris to the personal asset as in case in a Limited Company.
- Private Limited Company is a separate legal entity which means that Company is responsible for the management of its assets and liabilities, debtors and creditors.
- A company has a Perpetual succession which means that even on the death of the Partner the company continues to exist unless it is legally dissolved.
Also Read : Process Of Trademark Registration In India
Steps for forming a Private Limited Company Registration
- First step is to obtain Digital Signature Certificate which is required for filing the forms for company registration. The registration process is online and the forms requires the Digital Signature. You must obtain the digital signature which is certified either by Government or by the Authorized Agencies. The cost of obtaining agencies varies from agencies to agencies. DSC is obtained under class 2 or class 3, under class 2 identity of a person is verified against a pre-verified database, whereas under class 3, person should be present himself before the registering authority to prove their identity.
- Next step is to apply for DIN (Director Identification Number) Number, for a Director. DIN Number is basically obtained to be a Director of the following Company .There are three ways for filing DIN and they are as follows:
- File form DIN 3- this form requires basic details of the Proposed Directors along with the Documentation Like PAN Card, AAdhar Card etc.
- With filing spice in this maximum three Directors can apply for DIN. if a company wants to incorporate with more than 3 Directors and 3 Directors does not have their DIN Number then in that case applicant has to incorporate their company with 3 Directors only and and have to incorporate new Directors later on after incorporation of a company.
- If you want to register a company with Biatconsultant then there is no need to apply for separate DIn Number as it is included with the registration process only.
For name approval you have to incorporate your company Via Reserve Unique name (RUN). the Ministry of Corporate Affairs has introduced this RUN facility according to which name for approval is given to the MCA and if Ministry has rejected the name i.e. if the name of the company is not approved then second chance is given. So BiatConsultant helps you to find with the unique name so that there is less chance for approval of a name for incorporaion of a company.
If under spice form, name is not approved by the ministry then no second chance is given and you have to file fresh application and there is no fee.