Company possess the legal corporate character and is a separate legal entity from the person who are part of the company. The company can sue and be sued in its own name and can also hold the property in its name. For a startup, the Private limited company is the best form of doing business. Lesser compliance, easy transfer ability of shares, privately managed company format, capital funding and raising, limited liability are certain features which makes the private limited company as one of the best-suited forms of doing business. The incorporation of a private company is regulated by the Companies Act, 2013, Ministry of Corporate Affairs, and the Companies Incorporation Rules, 2014. The private limited company is not allowed to issue the shares to the general Public.
Before initiating the Incorporation procedure, the DSC for authorized signatories should be obtained and thereafter apply for name approval of the company to avoid the rejection of incorporation application for the reason of already existing name. For the name approval, E-form RUN (Reserve Unique Name) is required to be filled at the MCA (Ministry of Corporate Affairs) portal. One must keep in mind that the name should not be opposed to public policy or prohibited. The documents pertaining to incorporation includes the Photograph, ID proof and the Address proof of applicant, PAN card, copy of ownership deed or sale deed, for address proof things like electricity bill or telephone bill of registered office, in case of rented property copy of rent agreement, proof of nationality in case of the foreign national subscriber.
For the incorporation of e-form, SPICe-32 should be filed. The MOA, AOA and subscription details are also required to be uploaded along with the Spice-32 from. On scrutiny by the Registrar and once the documents are duly verified and approved by the government, the certificate of incorporation shall be issued to the applicant by the Registrar.
