A private limited company is the most common form of company structure that is found in India. This is primarily because the private limited company formation have multiple advantages over other types such as: –
- It is easy to raise capital in the name of a private limited company.
- Personal risks associated with private ltd companies are minimalistic.
- ROC or the Registrar of Companies operating under the Ministry of Corporate Affairs is quite lenient for the LTD companies.
LTD company formation process is not at all cumbersome, especially in the case of native Indian companies. There are specific guidelines that are hassle-free to follow.
Steps for Limited Company Formation
Here is the hierarchy of steps proposed by the Ministry of Corporate Affairs for the registration of a limited company: –
- The company executives have to select an appropriate and unique name for the company as the first step to register a company. The name should not resemble the name of any company already registered (Prevention of Improper Use Act, 1950).
- The company has to fill the form 1A after the selection of the name. This must be done through the online portal, along with a digital signature and the requisite fees. The ministry will approve the name if it is eligible.
- Within 60 days of approval of the name, the company must subsequently fill up the forms 1, 18, and 32. Along with these, the company has to submit the memorandum of articles. The memorandum has to be stamped with official stamp duty.
- All three forms have to be submitted along with digital signature and requisite fees. The hard copy of the company memorandum of articles has to be sent to the ROC.
If all the steps are done appropriately, ROC shall generate the certificate of incorporation, and your ltd company is hence registered underIndia Company Incorporation.
Post Registration Processing
After the limited company formation, Form 20 and 19 must be filled with requisite copies of documents to obtain the Commencement of business certificate.
Registering an ltd company in India is the easiest. However, it can be difficult to follow legal guidelines and instructions for novices. For hassle-free and fast company registration, you can opt for expert guidelines from experienced corporations like 3E ACCOUNTING INDIA. They have a team of experts who can help you right from choosing a company name to setting up an office for you to get started through their India Company Incorporation Services.