Private Limited Company Registration & Startup India Recognition

Private Limited Company Registration:

A Private Limited Company registration is a popular choice for startup founders in India due to its numerous advantages like easy access to funding, government support, loans, transparency, and simplified compliances, a step-by-step guide on how to register a Private Limited Company and obtain Startup Recognition to avail government grants: -

Step 1: Initial Process at MCA 

1. Choose a Unique Company Name: Select a unique name for your company that is not already registered or trademarked. Ensure the name reflects your business offerings and is available for registration.

2. Gather Required Documents: Collect necessary documents including:

   • PAN and Aadhar of directors

   • Address proof and identity proof of directors

   • Address proof of registered office

   • Passport-sized photographs of directors

   • Specimen signatures of directors

Step 2: Name Reservation through Spice Part-A

1. Check Name Availability: Verify the availability of the chosen company name on the MCA website. Ensure it complies with naming guidelines.

2. Fill out web-based Spice Part A of SPICe Form: Create a login ID on the MCA website and fill in Part A of the SPICe form for name reservation.

Step 3: Incorporation Process

1. Drafting Documents: Draft various documents like DIR-2, DIR-8, and other required documents. Ensure they are signed by promoters with self-attested KYC.

2. Fill web-based Part B of SPICe Form: Complete Part B of the SPICe form with all necessary details and upload signed documents along with self-attested KYC.

3. Fill Other Forms: Fill additional forms like Agile Pro, E-MOA, and E-AOA in INC-33 & INC-34 web-based form along with INC-9 & AGILE-S-Pro

4. Certify and Upload Forms: Certify the forms by all subscribers and professionals and upload them on the MCA website. Pay applicable government fees such as Stamp duty and PAN TAN Fees which are very nominal. Upto 15 lac authorized Capital there are no MOA fees applicable except Stamp duty. 

Step 4: Application Processing

1. Wait for Review: Wait for the MCA to review and scrutinize the application for incorporation and attached documents.

2. Certificate of Incorporation: Upon verification, MCA may grant the Certificate of Incorporation (COI) which signifies the existence of the company. COI includes the date of incorporation, Company Identification Number (CIN), and Permanent Account Number (PAN) along with Current A/c No, ESIC & EPFO No., Shop & Establishment for Delhi only, and Professional Tax Registration if any. 

3. Bank Account Opening: Proceed to open a current bank account for the company with the COI.

Step 5: Post-Incorporation Formalities

1. Subscription Money Deposit & Filing of INC-20A: Deposit the subscription money into the bank account as per the subscribers' sheet of the Memorandum of Association (MOA). File Form INC-20A with the MCA along with all proof of payment. 

2. Commence Business Activity: Once Form INC-20A is filed and approved, the company can commence its business activities and borrow funds if required. 

Now, the process for obtaining DPIIT recognition for a Private Limited Company involves several steps how to start the DPIIT process for a Private Limited Company in India?

1. Ensure Eligibility: Verify that your Private Limited Company meets the eligibility criteria set by DPIIT, including the criteria related to company age, type, annual turnover, and original entity formation.

2. Prepare Required Documents: Gather all necessary documents, including the Certificate of Incorporation, Memorandum of Association (MOA), Articles of Association (AOA), PAN card of the company, PAN and Aadhar of directors, address proof of registered office, and other relevant documents.

3. Register on DPIIT Portal: Visit the DPIIT portal and register your Private Limited Company for recognition. Provide accurate details about your company, including its name, incorporation details, directors' information, and other required information.

4. Submit Application: Fill out the application form for DPIIT recognition, ensuring all information provided is accurate and up-to-date. Attach all required documents as per the guidelines provided.

5. Review and Approval: Once you submit the application, it will undergo review by DPIIT. The authorities will verify the details provided and assess whether your company meets the eligibility criteria for recognition.

6. Notification of Recognition: If your application is approved, you will receive notification of recognition from DPIIT. This recognition signifies that your Private Limited Company is now recognized by the government as a startup, making it eligible for various benefits and incentives.

7. Avail Benefits: With DPIIT recognition, your Private Limited Company can avail benefits such as easier public procurement norms, self-certification for labor and environmental laws, fast-tracking of patent applications, tax exemptions, access to funding support, and partnered services.

8. Compliance: Ensure ongoing compliance with the requirements set by DPIIT to maintain your startup recognition status. This may include periodic reporting or updates to DPIIT as required.

By following these steps and fulfilling the requirements set by DPIIT, your Private Limited Company can successfully obtain recognition and avail of the benefits provided under the Startup India initiative including the assistance of experts like Compliance Calendar LLP, you can smoothly register your Private Limited Company and obtain Startup Recognition (DPIIT) to avail various benefits offered by the government to foster startup growth in India.