Registration Steps for a Private Limited Company

If you think that setting up your business is a harrowing experience then you must not be aware of the step-by-step approach. This approach, if followed could enable you to form a company of your own without much of a hassle. Let us then follow the approach and see what can be done in this regard. All is needed, is to know the rules and going through the legal process.

The Basic Requirements

Let us at first grab the basic requirements of what is required to set up a company:

• The primary requirement is that the number of directors should be at least two and also a minimum of two shareholders.
• It must also be remembered that the maximum number of shareholders can be fifty.
• By the rules of association share transfer is restricted.
• The public cannot be invited to subscribe any shares.
• Only members, directors and their relatives can invite for deposition.
• The number of compliance requirements is lower.

The Process Of Registration

First step - nowadays, companies can be registered via the internet. But still there is requirement for an appearance of a person for some of the procedures. It must also be remembered that the directors must possess their identification numbers and also their signature certificates.

The next step - this follows that of getting the name of the company registered among a choice of six names provided. It may take only about 2-3 days and depends upon the availability of the names.

After name approval – the name being approved the memorandum and articles of association are to be drafted.  The articles of association depict how the company will function internally while the memorandum will define the object clause as well as the authorized capital clause. This capital clause determines to what extent the base of ownership can be expanded by the issuance of shares.

Vetting – having formed out the memorandum and articles they are then sent to the registrar who will vet and work out any form of objections. If found okay they are then stamped and sent to the registrar.

The last stage – this is concerned with paying the registration fees that depends upon the company’s authorized capital. Having completed this step the company gets registered.

The Final Requirements

The final requirements after the formation of a company are:

• A permanent account number
• A company seal

The process of limited company formation does not take up much time and can be completed within a time span of about 30 days at the most. Most companies like computer contractors form in this way and there is not much of a hassle once the process is known and is followed correctly. A company after its formation can begin operations and start trading right away.