Private Limited Company-Daman & Diu (Upto 1 Lac Capital)(Excluding Goverment fees)

Formation Process of a Private Limited Company in Daman and Diu

The process of forming a Private Limited Company in Daman and Diu, like any other state in India, involves several steps, primarily governed by the Companies Act, 2013. Here’s a detailed breakdown:

1. Digital Signature Certificate (DSC)

• Obtain DSC for Directors: All proposed directors of the company need to obtain a Digital Signature Certificate (DSC). This is a digital equivalent of a physical signature and is used to electronically sign documents.

2. Director Identification Number (DIN)

• Apply for DIN: Each proposed director needs to apply for a Director Identification Number (DIN). This is a unique identification number assigned to individuals who intend to be directors of a company.

3. Company Name Approval

• Reserve a Name: Choose a unique name for your company and file a RUN (Reserve Unique Name) application with the Registrar of Companies (RoC). The RoC will verify the name and approve it if it meets the prescribed guidelines.

4. Prepare Incorporation Documents

• Memorandum of Association (MoA): This document outlines the company’s constitution, its objects, and the rights and liabilities of its members.
• Articles of Association (AoA): This document provides the rules and regulations for the internal management of the company.

5. File Incorporation Application

• SPICe+ Form: File the SPICe+ form with the RoC. This form is used for incorporating a new company and includes details about the company’s name, registered office address, directors, shareholders, share capital, and other relevant information.
• eMoA and eAoA: File the electronic versions of the MoA and AoA along with the SPICe+ form.

6. Certificate of Incorporation

• Issuance: Upon successful verification of the submitted documents, the RoC will issue a Certificate of Incorporation. This certificate signifies the official birth of the company.

Additional Steps and Considerations:

• Registered Office Address: You’ll need to have a registered office address in Daman and Diu. This can be a rented or owned property.
• Stamp Duty: Pay the necessary stamp duty as per the applicable rates in Daman and Diu.
• Minimum Capital: There is no minimum capital requirement for a Private Limited Company.
• Share Capital: Determine the share capital of the company and allocate shares to the shareholders.
• PAN and TAN: The company will need to obtain a Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) for tax purposes.
• Bank Account Opening: Open a bank account in the name of the company.

Key Points to Remember:

• Professional Assistance: Consider hiring a Chartered Accountant or a company secretary to guide you through the process and ensure compliance with all legal formalities.
• Timeframe: The entire process may take a few weeks, depending on the efficiency of the RoC and the completeness of your documentation.
• Post-Incorporation Compliance: Once the company is incorporated, you’ll need to comply with various statutory requirements, including filing annual returns, conducting board meetings, and holding annual general meetings.

By following these steps and seeking professional advice, you can successfully form a Private Limited Company in Daman and Diu.

Please note that this information is a general guide and may not cover all specific requirements and nuances. It’s crucial to consult with legal and tax professionals to ensure compliance with all applicable laws and regulations.