The establishment of a business isn’t an easy task. It is a crucial phase for any businessman as one has to comply with all legal requirements and launch the business market.
In this blog we will see the process of registering a Private Limited Company.
The first step towards registering a private limited company is to apply for approval of the proposed company names to the Ministry of Corporate Affairs. A maximum of 2 names can be provided. The allotted name would be reserved for 30 days from the approval date. The name should consist of three parts; the first part should be a unique term, the second part must describe the nature of the business that is to be carried on by the company, and the last part must represent
the entity type.
As the documents for Company Registration are submitted completely online, Digital Signature is mandatory for every Shareholder. A digital signature is exactly what it sounds like a modern alternative to signing documents with paper and pen. You need to obtain a class 3 digital signature for the registration process. It usually takes two days to get a digital signature.
The next process is to obtain a Director Identification Number (DIN) for the proposed Directors of your Company. DIN Number or Director Identification Number is a unique identification eight-digit number required for any existing Director of a Company. DIN Number contains all information regarding the director, i.e. name, PAN number, their present address, etc.
Once you obtain the DIN and Digital Signature, the next step towards the registration process is the submission of the Memorandum of Association and Article of Association. Memorandum represents the company’s charter, while articles of association contain the internal rules and regulations of the company. Each subscriber should sign the memorandum in the presence of at least one witness.
After the final submission of all the documents mentioned above, along with the necessary fee, ROC shall issue the certificate of Incorporation of your Private Limited Company. This means that your business is registered as a Private Limited Company.
As a Private Limited Company is a Separate Legal Entity, you need to obtain a Permanent Account Number from the Income Tax Department in your Company’s name. This can be used to open a current account, pay corporate tax, and serve many other purposes.
Here you can know everything about private limited registration in Bangalore.