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

Private Limited Company Formation Process in Punjab

Introduction

Incorporating a Private Limited Company in Punjab is a strategic move for businesses seeking legal entity status, limited liability protection, and a strong foundation for growth. This comprehensive guide outlines the step-by-step process, including essential documents, fees, and timelines.

Step-by-Step Process

1. Digital Signature Certificate (DSC)

   • Obtain a DSC for each director and signatory. This digital signature is essential for electronic filing of documents with the Registrar of Companies (RoC).

2. Director Identification Number (DIN)

   • Apply for a DIN for each director. This unique identification number is mandatory for individuals acting as directors of a company.

3. Name Approval

   • Choose a unique name for your company.
   • File Form SPICe INC-32 with the RoC to reserve the name.
   • The RoC will verify the name and issue a name approval letter.

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

   • Prepare the MoA and AoA, which outline the company’s constitution, objectives, and internal regulations.
   • These documents should adhere to the Companies Act, 2013.

5. Preparation of Incorporation Documents

   • Compile the following documents:
     • Name Approval Letter
     • DIN of Directors
     • DSC of Directors and Signatories
     • MoA and AoA
     • Declaration by Directors
     • Affidavit of Consent by Directors
     • Proof of Registered Office Address
     • PAN Card of Directors
     • Passport Size Photographs of Directors

6. File Incorporation Form SPICe INC-32

   • Submit the incorporation form along with the required documents to the RoC.
   • This form integrates multiple forms and streamlines the incorporation process.

7. Certificate of Incorporation

   • Upon successful verification, the RoC will issue a Certificate of Incorporation.
   • This certificate signifies the legal birth of your company.

Additional Considerations

• Minimum Capital Requirement: A minimum capital of Rs. 1 lakh is required.
• Number of Directors: A minimum of two directors is necessary.
• Shareholders: A minimum of two shareholders is required.
• Registered Office: A physical office address in Punjab is mandatory.
• Stamp Duty: Stamp duty is applicable on the Memorandum of Association and other documents.

Timelines and Fees

• The entire incorporation process typically takes 7-10 working days.
• Government fees and professional charges vary.

Benefits of Incorporating a Private Limited Company in Punjab

• Limited Liability: Shareholders’ liability is limited to their investment.
• Separate Legal Entity: The company is a distinct legal entity, separate from its shareholders.
• Perpetual Succession: The company’s existence continues even if shareholders change.
• Ease of Raising Capital: Companies can raise funds through shares and debentures.
• Credibility and Trust: A private limited company is a recognized and trusted business structure.

Conclusion

Incorporating a Private Limited Company in Punjab offers numerous advantages for businesses. By following the outlined steps and adhering to legal requirements, entrepreneurs can establish a strong foundation for their ventures. It is advisable to consult with legal and tax professionals to ensure compliance and optimize the incorporation process.