• Easy Transferability

As the ownership of a company is represented by shares, the ownership of a company can be transferred to any other legal entity or person in India or abroad easily - in part or whole. The directors can also be replaced to ensure business continuity.

• Limited Liability

A private limited company provides limited liability protection to its shareholders. In case of any unforeseen liabilities, it would be limited to the company and not impact the shareholders.

• Funding

A company can raise equity capital from persons or entities interested in becoming a shareholder. Entrepreneurs can raise money from angel investors, venture capital firms, private equity firms and hedge funds.

• Separate Legal Entity

A private limited company is recognised as a separate entity legally with perpetual existence. It can have a PAN number, bank accounts, licenses, approvals, contracts, assets and liabilities in its unique name.

1. Document submission

Identify the 2 directors and submit their documents as given to the below.

• Identity Proof- PAN (Indian Nationals ) or Passport (Foreign nationals)
• Proof of Address- Passport / Drivers License / Election ID / Ration Card / Aadhar ID
• Proof of residence- Bank Statement / Electricity Bill / Phone Bill

2. Name Approval

The proposed name is applied and obtained from the Ministry of Corporate Affairs. Upto 2 names can be provided. In case of rejection of both names, an opportunity is provided for re-submission of the form with 2 more names.

3. Digital Signature

Digital signatures must be obtained for the proposed directors of the company. Digital signature is required for signing of the incorporation application. However, digital signature is not required for obtaining the name approval.

4. SPICe+ form application

On obtaining the digital signature, the incorporation application can be submitted in the SPICe form with the MCA. There is no requirement for obtaining the RUN name approval for submission of SPICe Form.

5. Company Incorporation

Company is incorporated along with the incorporation certificate, PAN and TAN within 2-3 business days.

Entrepreneurs in the process of beginning a company registration are interested in knowing about the list of documents required for the process. In this article, we provide details and descriptions of the documents required for company registration.

Directors: Indian Nationals

The following documents are mandatory for Indian Nationals for incorporation of company in India:

• Identity Proof- PAN Card
• Proof of Address- Passport / Drivers License / Election ID / Ration Card / Aadhar Card / Electricity Bill / Telephone Bill
• Proof of residence- Bank Statement / Electricity Bill / Telephone Bill / Mobile Bill

Directors: Foreign Nationals

The following documents are mandatory for Foreign Nationals for incorporation of company in India:

• Identity Proof- Passport
• Proof of Address- Drivers License / Residence Card / Bank Statement / Government issued form of identity containing address
• Proof of residence- Bank Statement / Electricity Bill / Telephone Bill / Mobile Bill

Registered Office Proof

In addition to providing identity, address and residential address for the Directors, proof must be provided to validate the registered office address of the Company. The following documents must be submitted as proof of registered office during the company registration process or within 30 days of incorporation of the company.

• The registered document of the title of the premises of the registered office in the name of the company; OR
• The notarized copy of lease / rent agreement in the name of the company along with a copy of rent paid receipt not older than one month;

In addition to the above, the following must also be provided as proof of registered office:

• The authorization from the Landlord (Name mentioned in the Electricity Bill or Gas Bill or Water Bill or Property Tax Receipt or Sale Deed) to use the premises by the company as its registered office. This is usually referred to as NOC from Landlord; AND
• Proof of evidence of any utility service like telephone, gas, electricity, etc. depicting the address of the premises in the name of the owner or document, which is not older than two months.

Shareholder: Indian National or Foreign National

The identity and address proof as detailed in the article must be submitted for all the shareholders of the Company (i.e., subscribers to the Memorandum of Association (MOA) and Articles of Association (AOA).

Shareholder: Corporate Entity or Artificial Judicial Person

In case one of the shareholder or subscriber to the MOA and AOA is a Corporate Entity (Company, LLP, etc.,), then Certificate of Incorporation of the Body Corporate must be attached along with the resolution passed by the Body Corporate to subscribe to the shares of the company under incorporation.

In addition to the above proofs and documents, a number of documents like INC-9, MOA, AOA would be drafted by a Professional. These legal documents made specifically for the incorporation must be signed and notarized by the promoters of the Company.

Opening a current account for a private limited company is easier when compared to opening of current account for a sole proprietorship firm as a company is a registered legal entity – recognized by law. Therefore, once a company is incorporated, a bank account can be opened in the name of a company with the incorporation certificate of the company and identity/address proof of the Directors.