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Step by Step free guide to incorporate your company in India - goo.gl/XEHwzY
This video explains:
- How to form a Private Limited Company in India?
- What are the steps to form a Private Limited Company?
- What are the documents required to form a Private Limited Company?
- How much time does it take to form a Private Limited Company?
- What does it cost to form a Private Limted Company?
- Getting Director Identification Numbers
- Company's Name Approval
- Registered Office Address
- & more!
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How to form a private limited company in India
Specifically what I’m going to cover is: How much time does it take to form a company? What does it cost to form a company? What is the process? How to name a private limited company? What are the documents required and what are the most frequently asked questions? Firstly the process of forming a company is extremely simple today.
How long will it take to form a private limited company?
The entire process is online and it takes about 20 to 30 days to form a private limited company anywhere in India. In some cities, the companies get formed in about 7 working days. But in some cities, they take much longer.
How much does it cost?
It cost about fifteen thousand rupees to form a private limited company. OK now what is the process of forming a private limited company? What you need to know is there are just three simple steps to form your private limited company.
Three steps to form a private limited company:
1) Step one is getting a DIN number.
2) Step two is getting your company's name approval and
3) Step three is submitting your registered office address proof.
That's all you need to remember.
What is a DIN number?
DIN number stands for a director identification number. Any private company has to have a minimum of two directors and each director should have a direct identification number also known as a DIN number.
How do we get a DIN number?
In order to get a DIN number what we need from you is a PAN card copy, and the address proof. The address Proof could be Voters ID and Aadhar card, Driving license, Passport or any bill also would do. OK. In addition to that, we would also need a passport photograph.
What are the documents required to get a DIN number?
Once a PAN card copy, two an address proof, three a passport-sized photograph. These are the documents required to get a DIN number and there should be a minimum of two directors in each company and for each director, you need to submit these proofs.
How to get the approval for the company name?
So you might have thought of a name for your private company. Okay. The Ministry of Corporate Affairs has laid on a set of guidelines for choosing a company name. Your company's name will get approved only if it is as per those guidelines. If not it won't get approved. Okay, so what are these guidelines. Okay, I'll just touch upon the most important guideline which is that your company name should have at least two parts OK.
1) The first part is a unique name that you've already thought of OK.
2) The second part should signify the nature of your business.
So, for example, Infosys Technologies private Ltd or Tata Motors private Ltd or Reliance Communications private Ltd. OK. So if you look at these names there are two words there are Infosys and then there are technologies that signify the nature of your business. So your name should have two parts. The first part is a unique name and the second part should signify the nature of your business. That's it. So that is the name approval process which is the second step. OK moving on to the third step.
Submitting the address proof of the registered office:
The last and final step in this step we should be submitting proof of your registered office address so you might have identified an address for your registered office address. To get the registered office address is the address that is going to be printed on your certificate of incorporation and this address could be your home address.
In the case of rented property:
- It could be a property that you own or it could also be a rental property. Now if this address is a rented property then you need to submit a rental agreement and a no objection letter from the owner of. If the property is your own property. Then you'll have to submit an electricity bill in the name of the owner and also a no objection letter from the owner.
In some cities, they ask for some property documents like a property tax receipt or a sale deed. OK. So this was the third step where you need to submit your registered office address proof. OK. Along with your registered office address proof in the last year.