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

Private Limited Company Formation Process in Jharkhand

Understanding the Basics

A Private Limited Company (PLC) is a popular business structure in India, including Jharkhand, offering limited liability protection to its shareholders. This means that the personal assets of the shareholders are shielded from the company’s debts and liabilities.

Key Steps to Form a PLC in Jharkhand

1. Digital Signature Certificates (DSC)

   • Obtain DSCs for all proposed directors of the company. These digital signatures are mandatory for filing documents online with the Registrar of Companies (RoC).

2. Director Identification Number (DIN)

   • Apply for a DIN for each director. This is a unique identification number assigned to individuals who intend to be directors of a company.

3. Name Approval

   • Submit a name application to the RoC using the SPICe+ form. The proposed name should be unique, not similar to existing company names, and should comply with the Companies Act, 2013.

4. Preparation of Incorporation Documents

   • Draft the following documents:
     • Memorandum of Association (MoA): This document outlines the company’s constitution, its objects, and the powers of the company.
     • Articles of Association (AoA): This document specifies the internal rules and regulations governing the company’s operations, such as the rights and duties of directors and shareholders, dividend policies, and procedures for meetings.

5. Filing of Incorporation Documents

   • File the SPICe+ form along with the MoA and AoA electronically with the RoC.

6. Certificate of Incorporation

   • Upon successful verification of the documents, the RoC issues a Certificate of Incorporation. This certificate signifies the legal birth of the company.

Additional Considerations

• Registered Office Address: You need to have a physical address in Jharkhand to register your company. This address will be the official communication address for the company.
• Minimum Share Capital: The minimum paid-up share capital for a private limited company in India is INR 1 lakh.
• Minimum Directors: A private limited company must have at least two directors.
• Minimum Shareholders: A private limited company must have at least two shareholders.
• Stamp Duty: Stamp duty is payable on the Memorandum of Association and Articles of Association. The rate varies from state to state.

Professional Assistance

While it’s possible to form a private limited company in Jharkhand independently, seeking professional assistance from a company secretary or a legal firm can streamline the process and ensure compliance with all legal requirements. They can help with:

• Drafting the necessary documents
• Filing the documents with the RoC
• Obtaining necessary approvals and licenses
• Ensuring compliance with ongoing statutory requirements

Benefits of Forming a Private Limited Company in Jharkhand

• Limited Liability: Protects personal assets of shareholders.
• Separate Legal Entity: The company is a distinct legal entity from its owners.
• Perpetual Succession: The company can continue to exist even if shareholders change.
• Ease of Raising Capital: Can raise funds through issuance of shares.
• Credibility: A recognized legal structure that enhances business credibility.

By following these steps and seeking professional guidance, you can successfully form a private limited company in Jharkhand and lay the foundation for your business venture.

Please note that the specific procedures and fees may vary. It is advisable to consult with a legal professional or a registered agent to get the most accurate and up-to-date information.