Private limited companies in India are privately held companies with limited liability, governed by the rules of the Companies Act 2013. According to the rules of the Act, private limited companies are companies where liability of shareholders is limited to the value of their shareholding. As a legal entity separate from its owners, a private limited company is liable to manage its own assets and debts.

Adopting a private limited structure for your business offers a blend of flexibility and protection. This makes it ideal for small and medium enterprises. Most start-ups also opt for private limited incorporation to avail easy funding benefits from banks and NBFCs. To make the registration process easier, the government has introduced SPICe+ (INC-32). This integrated web form offers ten services through one form including name reservation, DIN allotment, incorporation of a new company, and application for PAN and TAN. This article outlines how you can register your company as a private limited company using the SPICe+ Form.

Steps to register a private limited company

1.Get a DSC

To get started, obtain a class 3 DSC or digital signature certificate. DSC will be needed to sign your online private limited company registration form. According to current regulations, DSC is required for every Memorandum of Association (MOA) and Articles of Association (AOA) witness and subscriber. As such, it’s best to get your DSC from a government-authorised centre. Generally, obtaining a DSC takes around two days.

2.Apply for a Director Identification Number

Every individual who wants to take on the position of a company director must possess a DIN or Director Identification Number or DIN. There are two ways of applying for DIN. You can either apply using Form DIN-3 (in case of existing companies) or directly via the SPICe+ (INC-32) Form (in case of a new company). For the former, you need to submit supporting identity and address proof papers like Aadhaar and PAN. In case you apply for DIN via the SPICe+ Form, you can apply for a maximum of 3 directors. If you want to incorporate the company with more than 3 directors, you must start with 3 and then appoint others after the incorporation.

3.Get the company name approved

The name you propose will be checked against existing companies, trademarks, and LLPs. It will also be checked for compliance with the Companies Incorporation rules 2014. To finalise a name for your company’s registration, you can choose one of two methods:

Method 1: You can use Part-A of the SPICe+ Form to complete name reservation. In this case, you can propose up to two names and resubmit one (if the need arises) without starting from scratch. Once approved, the name will remain reserved for 20 days. You must complete the incorporation process within this time.

Method 2: The second option entails filling out the SPICe+ Form’s Part-A and PArt-B simultaneously. This option limits the possibility of error since you are allowed to propose just one name and have a chance to resubmit only once. If both are rejected, you have to start the process from scratch, paying registration charges again.

4.Complete the SPICe+ (INC-32) Form

You can click on the approved company name on your MCA dashboard to fill-out Part-B of the SPICe+ Form. Fill-in relevant details like office address, directors, subscribers, and share capital. Attach essential supporting documents like ID proof, address proof, registered office proof documents. Once you fill the Form, download it as a PDF and use DSC to digitally sign the document. Submit the signed document on the MCA portal. 

5.Submit the company’s e-MoA and e-AoA

You also need to complete the e-MoA and e-AoA forms. While memorandum sums up the charter of the company, articles of association sum up the rules and regulations applicable internally. e-MoA and e-AoA represent the digit versions of these documents. Obtain digital signatures from all subscribers of MoA and AoA before submitting them to the MCA.

6.Acquire your certificate of incorporation

You have to wait for the SPICe+ Form to be approved. Once it’s approved, you will receive your Certificate of Incorporation. Moreover, after you submit the form, the system will auto-generate PAN and TAN as well. Your Certificate of Incorporation, PAN, and TAN will be emailed to you by the MCA. If your form is in order, MCA will also approve the registration and issue a Corporate Identity Number.

Conclusion

Introduction of the SPICe+ Form has simplified the registration process for a private limited company. By offering several services like DIN allotment, name reservation, and PAN/TAN application through a single unified form system, the process of becoming a registered company is now hassle-free and convenient. Remember, registering your private limited company will help open doors to various growth avenues, including obtaining funding and registering on online marketplaces to grow your sales.

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