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Minimum Requirements for Incorporation of a Private Limited Company

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Minimum Requirements for Incorporation of a Private Limited Company

All those entrepreneurs who are intending to register and run Private Company but are still confused about its minimum requirements; here is a quick reference to know the minimum requirements for incorporation of a Private Company:

  1. Statutory Requirements
  2. Filling requirements
Statutory requirements:

Statutory requirements are the basic legal requirements mentioned in the Companies Act, 2013 for valid incorporation of a Company. This is the minimum requirements to be complied with to incorporate a Company, non-compliance would attract rejection of the application.

The minimum requirements are as follows:
    1. Directors: Directors are the authorized representative entrusted with the responsibility to run and manage the company and are appointed by the shareholders. Therefore, at least two directors are required to incorporate a Company. Only individuals can become the directors of a company.
    1. DIN (Director Identification Number): Every person who wants/ is appointed as the Director of the Company needs to have a valid DIN or is required to apply for DIN in Spice form.
    1. Members: Members are the shareholders or investors who with the intent to share profit have come together to form a Company. At least two members, whether natural or artificial, are required to form a pvt. company.
    1. Capital: The statutory requirement for minimum capital has been waived off by the Statute. Now a company may be formed with even Re. 1 as contribution. However, as the private bank account normally open with the minimum balance of Rs. 10,000, so practically, minimum share capital should be Rs. 10000.
    1. Filing of Forms: Application for incorporation is to be filed in E-form Spice, e-MOA and e-AOA electronically. The said forms are to be digitally signed by the applicant and a professional who is in practice.
  1. Declaration: A declaration by the first subscribers as well as the first directors of the Company needs to be attached with the forms stating that all compliances related to the incorporation of Company shall be duly complied with.
Filing requirements:
    1. Digital Signature Certificate: In order to digitally the sign the forms, applicant and the professional need to have a valid DSC.
    1. Self-certification of document: All documents need to be self-certified by the concerned person and id and address proof of applicant, as well as subscribers, needs to be also certified by the professional.
    1. Clear and Legible attachments: Documents attached with the forms needs to be clear and legible. This will help in avoiding ambiguity and ensure the originality of documents.
    1. Occupation, Education qualification and Place of birth of Directors: Forms also need few other details of the person applying for DIN in the form. The details include the education qualification, occupation and place of birth of the applicant.
    1. Utility bill not to be older than 2 months: Utility bill of the applicant as well as for address proof of the registered office need not be older than 2 months.
  1. Payment of challan: To promote ease of doing business, the government has waived of fees for incorporation of Company up to Authorized capital of Rs. 10,00,000/- w.e.f. 18.03.2019, this waiver has been extended for Companies incorporated with Authorized Capital up to 15,00,000/- However, no waiver has been made on stamp duty payable on MOA and AOA. Hence, necessary to ensure payment of stamp duty, as well as PAN TAN application, is duly deposited with MCA. Only after successful payment, the application is processed by the CRC.

The above points if taken care of can reduce the time involved in incorporation of the company. This will also ensure in smooth processing of Spice forms. We, at complainceship, having the experience of more than 9 years of registering a private limited company in India, provide full fledge assistance to the entrepreneur in registering his/ her private limited company without any hassle and help them in achieving their dreams, for more details contact us at 8010233173 or complianceship@gmail.com and contact@complianceship.com

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