Private Limited Company-Delhi (Upto 1 Lac Capital)(Excluding Goverment fees)

Private Limited Company Formation in Delhi: A Comprehensive Guide

Understanding Private Limited Companies

A Private Limited Company (PLC) is a popular business structure in India, offering a balance between sole proprietorship and a public limited company. It provides limited liability protection to its shareholders and is generally easier to manage than a public company.

Key Features of a Private Limited Company

• Limited Liability: Shareholders’ liability is limited to the amount of capital they have invested in the company.
• Separate Legal Entity: The company is a separate legal entity from its shareholders, capable of owning property, entering into contracts, and suing or being sued in its own name.
• Share Capital: The company’s capital is divided into shares, which are owned by its shareholders.
• Management: The company is managed by a board of directors elected by the shareholders.
• Restrictions on Share Transfer: The transfer of shares in a private limited company is restricted, typically requiring the consent of other shareholders.

Steps to Form a Private Limited Company in Delhi

1. Obtain Digital Signature Certificates (DSC)

   • DSCs are required for all directors and signatories to file documents electronically with the Ministry of Corporate Affairs (MCA).
   • Apply for DSCs from authorized certifying authorities.

2. Apply for Director Identification Numbers (DIN)

   • DINs are unique identification numbers assigned to each director of the company.
   • Apply for DINs through the MCA’s online portal.

3. Name Approval

   • Choose a unique name for your company.
   • File a SPICe+ form with the proposed name for approval.
   • The MCA will check for name availability and similarity with existing company names.

4. Drafting of Memorandum of Association (MoA) and Articles of Association (AoA)

   • The MoA outlines the company’s objectives, registered office address, and initial share capital.
   • The AoA details the internal rules and regulations governing the company’s operations, such as the powers and duties of directors, shareholders’ rights, and procedures for meetings.

5. File Incorporation Documents

   • File the following documents with the Registrar of Companies (RoC):
     • SPICe+ form
     • e-MoA
     • e-AoA
     • Declaration by professionals
     • Affidavit of consent by directors
     • Identity and address proof of directors and shareholders
     • NOC from the owner of the registered office address

6. Payment of Fees

   • Pay the requisite fees to the RoC.

7. Certificate of Incorporation

   • Upon successful verification of documents and fee payment, the RoC will issue a Certificate of Incorporation, signifying the company’s legal existence.

Post-Incorporation Compliance

• Opening a Bank Account: Open a current account in the company’s name.
• Obtaining PAN and TAN: Apply for a Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) from the Income Tax Department.
• GST Registration: If the company is liable to pay GST, register with the Goods and Services Tax Network (GSTN).
• Professional Tax Registration: Register with the state government for professional tax, if applicable.
• EPFO and ESIC Registration: Register with the Employees’ Provident Fund Organization (EPFO) and Employees’ State Insurance Corporation (ESIC) if the company has employees.
• Annual Filing of Returns: File annual returns with the MCA, including financial statements, director’s report, and other statutory documents.

Professional Assistance

While it’s possible to incorporate a private limited company in Delhi on your own, seeking professional assistance from a chartered accountant or company secretary can streamline the process and ensure compliance with all legal requirements.

Conclusion

Forming a private limited company in Delhi can be a complex process, but by following the steps outlined above and seeking professional guidance, you can successfully establish your business and enjoy the benefits of limited liability and corporate structure.