Company Incorporation Services & Consultant with SKMC Expert

A private limited company is a type of legal business entity in which ownership of the Company is held by private stakeholders and shares are not traded on stock market. It is one of the most popular legal structure among the new entrepreneurs. The incorporation of a company in India has a standard process and is regulated by the Ministry of Corporate Affairs (MCA). As an advisory firm in business, SKMC Global offers to help entrepreneurs, startups, and businesses set up their entities in India well.

Benefits of a private limited company

Members- To start a company, minimum 2 members are
Limited Liability*- Each member’s liability is limited to the contribution made by
Capital– There is no minimum Capital requirement to start a company. However, for being a Private Company Limited by shares, it is necessary that at least one share must be subscribed by each
Separate Legal Entity: A company is a separate legal entity and is a juristic person in the eyes of the law. Therefore, a Company is an artificial person and has a wide legal capacity. It can incur debts in its own name as well as can own a property. The members/ directors have no liability to the creditors of such compan Hence, a Private Limited Company is a legal entity separate from that of its members.
Capacity to sue and be sued: Being a n artificial person, a company can sue and be sued in its own
Perpetual succession: A company has continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death of any member but continues to be in existence irrespective of the changes in membership/directorship.

Incorporation of the Company

Step 1: Choosing the Company Type:

Under the Companies Act of 2013, there are several kinds of companies that may be incorporated in India as per the suitability and scale of business. All of these have been classified into:

Private Limited Company
Public Limited Company
One Person Company (OPC)
Limited Liability Partnership (LLP)

All of them have different legal formalities and benefits. Thus, a proper choice must be made as per the business objectives. SKMC Global helps choose the best possible structure for your enterprise.

Step 2: Select Company Name:

At the next step we go on to decide a name for the company. It should be in accordance with the guidelines circulated by Ministry of Corporate Affairs. However, it should not be similar or close to the name of a company or trademark that is already in existence. The availability of a particular name can be checked on the website of MCA. You may then book the name through the RUN facility provided by MCA once you finalize a name.

Step 3: Digital Signature Certificate:

For the purpose of signing documents electronically during the incorporation process, it is very much important to have the Digital Signature Certificate, commonly abbreviated as DSC. DSC is issued by any government-approved certifying authority and with regard to the director(s) and authorized signatory shall be required.

Step 4: Process for DIN Application:

DIN is short form of Director Identification Number. It may be regarded as an identification number issued to the persons intending to become directors of the company. Online facilities through the MCA website can also be accessed by making application for DIN through DIR-3 form: If the proposed director(s) already possess valid DIN, then there is no requirement to make fresh application.

Step 5: Memorandum and Articles of Association:

Therefore, the two most important documents that limit and define the reach of the scope of activity of an organization also mention the internal governance of an organization. These are MOA and AOA. MOA describes what a company wants to achieve while AOA document lists out the rule and regulation that governs the company. SKMC Global draws the above two documents along with ensuring legal compliance.

Step 6: Incorporation of Company with MCA:

A. File the Incorporation Forms

1) Log in to the MCA portal and go to MCA Services → Company Services → Incorporation of Company.

2) Choose the appropriate form depending on the type of company being incorporated:

SPICe+ (Simplified Proforma for Incorporating Company Electronically): This is the comprehensive form for the incorporation of private companies, public companies, and one-person companies.

Form SPICe+ includes various services, such as:
Name reservation
DIN allotment (if not already obtained)
PAN and TAN application

Other Forms (if needed): Such as for OPCs or specific cases.

Filing Process:

Fill in the required details in the SPICe+ form.
Attach all required documents.
Sign the form digitally using the DSC of the directors.
Pay the requisite fees for incorporation, which can vary based on the authorized share capital.

B. Payment of Fees

The fee depends on the company’s authorized share capital and other factors.
Payment can be made through the MCA portal using net banking or other online payment methods.

C. Approval and Certificate of Incorporation

Once the application is submitted, the MCA will verify the documents and application.
If all details are correct, the Registrar of Companies (ROC) will approve the application and issue a Certificate of Incorporation.
The certificate is issued digitally and can be downloaded from the MCA portal. It serves as the legal proof of the company's existence.

Step 7: PAN and TAN Registration PAN (Permanent Account Number):

On incorporation of the company, PAN is received from the Income Tax Department for any kind of tax-related purposes. TAN (Tax Deduction and Collection Account Number): If the company is engaging in some business requiring some form of deduction of tax at source, then it also requires TAN. Both PAN and TAN are generated at the time of incorporation by MCA and are received on email id.

Step 8: Opening of Bank Account:

This company, under the current mode of incorporation, must maintain a corporate bank account in the company's name. The bank would ask the following documents from the company: Certificate of Incorporation PAN Proof of address of the registered office Identity and address proofs of the directors.

Step 9: Other Regulatory Compliance:

Again, depending on the nature of the business, there could be more registrations and licenses which would be needed. Some of them are commonly encountered as below:

GST Registration, if turnover crosses prescribed limit
FSSAI License, if the business deals in food
Import Export Code(IEC),if companies are dealing in International trade
Shops and Establishment Act Registration

Documents required for incorporation of the company

PAN, Aadhaar and Passport size photograph of promoters and directors
Voter ID/Driving License/Passport of director and promoter as identity proof
Bank Statement/utility bill not older than 2 month of director and promoter as address proof.
Sale Deed or rent agreement along with utility bill not older than two month
Write up of detailed objects to be pursued by the Company
Two Proposed Names

How SKMC can help you?

SKMC Global specializes in navigating every step of the process from conceptualization and then seeing through that your firm is incorporated and in compliance with a number of Indian regulations. It guides every step you take from the choice of the kind of company one needs to incorporate and then get all licenses involved. There is painstaking effort into making sure that your company is absolutely legitimate and geared towards conquering future challenges in the Indian market:

Here's how SKMC Global can assist at each crucial step:

Expert Discussion: Our team of experts understands the objective of business and advises on the most suitable structure.
Document Drafting: Our team drafts the required documents along with the Memorandum and Articles of Association (MOA and AOA) meticulously so as to align the goals of the business with the documentation.
Filing of Application Submission:SKMC Global prepares and submit necessary documents with Registrar of Companies (RoC).
Obtaining the approval: Once the application is filed, SKMC Global team handles the task of ROC approval making the process hassle-free and seamless for the client.
Post incorporation Compliance: SKMC team ensures that the newly incorporated company adheres to the compliances required post-incorporation which allows the client to concentrate on the business's growth and operations.