Unlike public limited companies, private limited companies are much smaller and do not seek funds from the public; they instead operate using their own financial resources.

This allows them to encounter fewer regulatory procedures than their public counterparts.

Steps to register a private limited company in India:

Name Approval

The latest Reserve Unique Name (RUN) portal allows two suggestions for proposed company names. Another section of the portal allows viewers to check the names of already existing companies.

Name approval can also be sought while filing the SPICe (INC-32) form. This process requires the certification (apostille) of the following documents:

Resolution from parent company for the use of trademark/main name and intention to incorporate an Indian subsidiary; and,

Charter or certificate of incorporation of the foreign company in English.

Create a digital signature certificate

A Digital Signature Certificate (DSC) is an electronic copy of a director’s identity. It takes around three to seven working days to obtain a DSC online from any of the specified Certifying Authorities (CAs).

All directors of the company should obtain a DSC, which is valid for a maximum of two years.

Director Identification Number (DIN)

A foreign firm will have to fill Form No. FC-1. The form asks for basic information of the foreign company, and the DSC of the local representative or Director Identification Number (DIN).

Every director of a company must possess an eight digit DIN. An individual is allowed to possess only one DIN, even if he/she is a director in multiple entities.

SPICe Form (INC-32, INC-33, and INC-34)

INC-32 is an extremely detailed online form covering the application for DIN, reservation of company name, and incorporation of a company.

It requires 21 documents to be attached at the time of filing. The attachments include the following:

• Memorandum of Association;
• Articles of Association;
• Copy of utility bills (not more than two months);
• Proof of office address (conveyance/lease deed/rent agreement with receipts);
• Copy of certificate of incorporation of the foreign body corporate and resolution passed;
• Proof of identity and address of all directors;
• Trademark registration certificate/approval from owner of the trademark;
• List of companies having the same registered office, if any; and,
• Foreign directors/subscribers must submit an affidavit for not having a Permanent Account Number (PAN card).

In conclusion, it shall be kept in mind that a company, which duly complies with all the rules and regulations applicable, shall be a successful entity in the long run.

If you have questions about the information presented here or if you would like to receive personalized advice, contact BDS Legal Services and get a free consultation.   

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