Steps to set up a Pvt. Ltd. Company

Steps to set up a Pvt. Ltd. Company
Entrepreneurs, enterprises, or corporate bodies desirous of forming a new company, should follow the following elegant step by step procedures:-1. Selection of the type of company.According to the objectives of the company, proposed scale of operations & activities, capital involved, etc. the promoters have to decide exactly and precisely the type of company as the private company, public company, non-profit making company, etc. 2. Selection of name for the proposed company.A minimum of six proposed names of the company to be formed, is selected by the promoters after scrupulous observation of various provisions, circulars, and rules of the Ministry of Corporate Affairs (MCA). On receipt of the completed application in e-Form 1A, filled in up by the promoters, the concerned Registrar of Companies confirms the possibility of adoption of the sent proposed names, such confirmation remains valid only for a period of six months. Failure of submission of the required documents from the promoters’ side within this time period of six month, necessitates the submission of another application together with proposed names, and payment of the requisite fees.3. Apply for the Directors Identification Number (DIN) and Digital Signatures.Before the submission of completed e-Form1A, the directors of the proposed company must ensure that they have legitimate DIN. In case they do not have the DIN, they are required to apply for the same as per the new section 266A of the Companies (Amendment) Act, 2006. Again, every document prescribed under the Companies Act, 1956, is required to be filed with the digital signature of the managing director, or director, or manager, or secretary of the proposed company.4. Drafting of Memorandum and Articles of Association.Drafting of the Memorandum (M.O.A) and Articles of the Association (A.O.A), is the very next step after getting confirmation of name by the Registrar. These two documents are of the paramount importance as these contain ultimate objectives (as also shown in the e-Form) and cherished & ideal rules & regulations of the company. It should be noted that the main objects should match with the objects shown in e-Form. The M.O.A and A.O.A must be drafted very scrupulously with great care and concern, after a comprehensive and elegant counsel of the concerned experts. 5. Stamping, digitally signing and e-filing of various documents with the Registrar.For the incorporation of company the documents submitted to the Registrar along with the mandatory registration fees, may include Memorandum and Articles of the Association, Declaration in e-Form1, Power of Attorney, e-Form 18, e-Form 32, and copies of any other agreements. 6. Payment of Fees.The registration fees vary depending upon the authorized capital of the proposed company, which can be effortlessly calculated from the Ministry of Companies Affairs portal.7. Obtaining Certificate of Incorporation.After the censorious observation of the required documents specified in sections 33(1) and 33(2) from the company side, the Registrar registers the memorandum and articles of the association and issues a certificate of incorporation within a period of 7 days of receipt of the documents, as per the section 34(1).8. Preparation and filing of Prospectus/Statement in lieu of Prospectus and e-Form 19/20 (in case of public companies) for obtaining the certificate of commencement of business.9. Obtaining Certificate of Commencement of business (in case of public limited companies).