In this article, we will learn how to register limited company in India. Before learning about the registration process, let us understand what a limited company is and what are its features.
Table of Contents
What Is A Limited Company?
A limited company or a limited liability company is a hybrid type of organization. It incorporates the features of both a corporation and a partnership firm. It is a separate legal entity and has limited liability features like corporations. Furthermore, there is a provision of tax benefits and operational structure like a partnership firm.
What Are The Benefits Of A Limited Company?
Foreign Ownership
There is a provision of 100% foreign ownership for limited liability companies in India.
Limited Liability
The shareholders of the company are liable only up to the amount they have contributed.
Number Of Shareholders And Directors
A limited liability company must have a minimum of two shareholders and two directors. The shareholders and the directors can be the citizens of any country. However, the Board of Directors of the company must include a citizen and resident of India.
What Is The Registration Process?
The following steps will tell you how to register limited company in India.
Step 1: Obtain The Designated Partner Identification Number (Dpin)
All designated partners of the limited company must possess a DPIN. A DPIN can be obtained by filling the DIR-3 eForm on the Ministry of Corporate Affairs (MCA) website. Furthermore, you can use the Director’s Identification Number (DIN) in case you already have it.
Step 2: Obtain A Digital Signature Certificate (Dsc)
The limited liability company must acquire a Digital Signature Certificate. The DSC ensures the security and authenticity of all the documents that are exchanged online. Thus, all the documents that are filed by the members of the company must include their digital signatures. The DSC can be obtained from a government recognized Certificate Authority(CA).
Step 3: Reserve A Name For Your Company
You can reserve the company name using the LLP-RUN (Limited Liability Partnership- Reserve Unique Name) form. Likewise, you must be aware of conflicts with existing company names and trademarks. You can use the free name search utility provided by the MCA to see if your name matches with other company names. Furthermore, the name you use must be non-offensive in the eyes of the Central Government. Moreover, you can provide two names during the reservation process. Finally, the registrar of the company will approve a suitable name or state the defects in your proposed names.
Step 4: Incorporate Your Llp
You can file for incorporation of your LLP by using the FiLLiP (Form for Incorporation of Limited Liability Partnership). The ministry will send you an email stating the status of your incorporation. If your incorporation is successful, your reserved name will be stated as the name of the LLP.
Step 5: File The Limited Liability Partnership Agreement
Lastly, you must file the initial LLP agreement within thirty days of the incorporation approval. You must use Form 3 on the MCA portal for this process.
Similarly, you must present the proof of the registered office address. Furthermore, if you are renting space for your office, you must present a No Objection Certificate (NOC) from the landlord. Moreover, you must present electricity or telephone bills.
How We Can Help?
In this article, we have learned how to register limited company in India with all the benefits of such a company and all the requirements during registration.
3E Accounting India can help with your company registration process and make your job convenient and hassle-free. Our financial advisory, audit and assurance, corporate law, domestic tax, and business process outsourcing services are top-notch and guarantees satisfaction. Furthermore, we can promise you the best financial services in the most cost-effective manner. Moreover, thousands of satisfied customers worldwide are proof of our incredible professionalism. India company incorporation is one of our most essential services and you do not need to look any further now.
