What Happens After You Submit Your Private Limited Company Registration Application?
Post-submission Process of Private Limited Company Registration
Registering a private limited company (PLC) in India is your first crucial step toward becoming an entrepreneur.
The Ministry of Corporate Affairs (MCA) will email the certificate of incorporation, permanent account number (PAN), and a tax deduction and collection account number (TAN) following successful registration. The Income Tax Department produces PAN cards. The MCA will authorize the registration and assign a corporate identity number (CIN) if all the information on the form is correctly completed and accompanied by the necessary papers.
However, this blog focuses on the post-submission procedure to benefit interested readers.
- After verification, all necessary e-forms must be sent to the registrar, along with the required payments.
- After reviewing all the forms that have been filed, the registrar will decide whether to approve them or not, depending on their merit.
- The organization needs to suggest the DIN information to the RoC. The company director must notify and submit a different form to make the changes if required to edit or change the DIN details.
- To the Information Act of 2000, obtaining a valid DSC is crucial to ensure that the supplied papers are authentic and trustworthy. Each presented document needs to have a legal digital signature confirmed on it. The only other option for submitting the documents electronically is in this manner.
- Form 1: This form is used to declare a company’s incorporation; the details submitted in the form must correspond to those entered in the Form 1A application.
- Form 18: This form is used to update the prior registered office of a corporation. This form requires that accurate information be provided.
- Form-32 is used to appoint new directors, managers, and secretaries for the company. Therefore, all details mentioned in this form should be accurate and valid.
- After all of the filed documents have been verified, the registrar will mail the certificate of incorporation to the company’s directors.
- Two working days are the maximum time that can pass before notifying applicants of application flaws.
- After receiving an application, the concerned RoC must respond within two working days to confirm approval and issue a certificate of incorporation.
- There are numerous post-incorporation compliance obligations that the PLC must adhere to.
- Penalties for failing to comply with the requirements will be applied.
- The RoC must be notified of any changes that need updating or amending your PLC registration information; otherwise, an amended certificate of incorporation may not be given.
The private limited company registration process
The following conditions must be met before a PLC can be registered:
1. Minimum two directors: According to the Companies Act 2013, as recently revised, one director must be an Indian resident who has lived in India continuously for at least 12 months. A different person could be a resident who is foreign or Indian.
2. Minimum two shareholders: A person or a business may be a shareholder. A person is permitted to act as a shareholder for a business entity.
3. Registered office address in India: The company’s registered office (RO) must be in India. The business can use a home or commercial property as its RO address.
4. Unique business name: Entrepreneurs give a lot of thought to the name of their business. However, they must ensure that it is sufficiently distinctive. The name must also include a suffix that describes the company’s line of work, such as Mother Dairy Fruit & Vegetable Pvt. Ltd. The company works with dairy, fruit, and vegetable products, as is obvious from the name.
The next four steps involve the following:
- Step 1: Requesting a DSC (digital signature certificate)
- Step 2: Name reservation application (SPICe+ Part A)
- Step 3: Specifics for the planned company’s filing (SPICe+ Part B)
- Step 4: Preparing and submit the incorporation form
Certificate of incorporation
The MCA issues the certificate of incorporation (COI) after carefully examining your application and the supporting papers. When the date of establishment, CIN, PAN, and TAN are given along with the sign and seal of the Registrar, it is unmistakable evidence of the company’s existence. Additionally, directors are given DINs upon registration approval.
The CIN is adequate documentation of your company’s legitimacy, and you are now free to engage in the commercial activities you had planned.
The importance of understanding the post-submission process
Compliance is one of the things that must be done when the firm is incorporated so that PLCs can concentrate on their core functions. Additionally, it aids organizations in creating a proper framework that outlines the responsibilities of shareholders and directors.
Following registration, a PLC must comply with a few requirements for the system to advance, at which point startups can begin establishing their market presence.
Verification and scrutiny
Examination of the application by the Registrar of Companies (RoC)
All required e-forms must be sent to the registrar along with the necessary fees after verification.
The registrar will next review all the forms that have been submitted and decide whether to approve them or not based on their merit.
Common issues that may arise during verification
A PLC should stay clear of the following common problems while applying for a certificate of incorporation:
- The business should suggest the DIN information to the RoC or Registrar of Companies. The company director must notify and submit a different form to modify the changes if there is a need to edit or change the DIN details.
- In accordance with the Information Act of 2000, a valid DSC is required to ensure that the supplied papers are authentic and trustworthy. Each document that is uploaded must bear an authentic digital signature. And there is no other way to electronically submit the documents other than this.
Form 1: This form is used to declare a company’s incorporation; the information submitted on it must correspond to the information entered on Form-1A’s application.
Form 18: Form 18 is used for the purpose of changing the address of the company’s previously registered office. Submission of all genuine details is mandatory in this form.
Form 32: The corporation uses this form to appoint new directors, managers, and secretaries. Therefore, any information provided in this form must be true and correct.
Approval and issuance of a certificate of incorporation
Criteria for approval of the application
The criteria in this regard include the following:
- Obtaining a DSC and director identification number (DIN)
- Applying for name approval
- Preparation of a memorandum of association (MOA) and articles of association (AOA)
- Filing the e-forms and payment of fees with the registrar
Issuance of a certificate of incorporation
The registrar will mail the certificate of incorporation to the company’s directors after verifying all submitted papers.
Timeframe for approval and issuance of the certificate of incorporation
The maximum time from the application’s receipt date to alert applicants of application faults is two working days.
After receiving an application, the concerned RoC can notify approval and provide a certificate of incorporation in 2 working days.
Significance of the Certificate of Incorporation
Here is a sample copy of the certificate of incorporation that the MCA issued:
A letter of incorporation, a certificate of incorporation, or a COI are other names for a company registration certificate. After a company in India successfully completes the registration process, the MCA issues it a legal document or certificate. The existence of this certificate of incorporation serves as evidence that the company has registered with the Registrar of Companies. This essential legal document must be received when a company or firm is formed.
Overview of post-incorporation compliance requirements
Here is a brief overview of the compliances that must be completed as soon as the firm is registered in India.
- Notify the MCA of the registered office’s address if it differs from the office’s at the time of incorporation.
- Hold the company’s first board meeting no later than 30 days after its formation.
- Select a first auditor and provide the MCA with information via Form ADT 1.
- A bank account must be opened within 60 days of establishment.
- Distribute share certificates within 60 days of the company’s establishment.
- By Section 10A, newly formed businesses may only launch operations after submitting Form INC-20A to the MCA within 180 days of their formation.
- Hold board meetings regularly and prepare, control, and keep minutes’ details.
- Businesses must submit an MSME registration form every six months, if applicable.
- Businesses registered for ESI, PF, and GST must submit their returns monthly or quarterly, as necessary. Additionally, businesses using TANs are required to deduct and remit the necessary TDS sum each month. These businesses must also timely file their TDS filings every quarter.
Timelines for fulfilling compliance requirements
Following is a schedule for completing various compliance criteria after a PLC’s incorporation:
|Commencement of business||After a company is incorporated, the commencement of business certificate must be received within 180 days.|
|Auditor appointment||Within 30 days of incorporation, every registered Indian company must engage a statutory auditor.|
|Income tax return||For the fiscal year 2020–21, income tax returns must be filed on or before September 30, 2021.|
|MCA Form AOC-4||The MCA Form AOC-4 for FY 2020–21 must be submitted by the registered PLCs on or before November 30, 2021.|
|MCA Form MGT-7||For the fiscal year 2020–2021, MCA Form MGT-7 must be submitted on or before December 31, 2021.|
|DIN e-KYC||Every director of the business must file the DIN e-KYC or DIR-3 e-KYC. The director must enter a personal mobile number and an email address in DIR-3 e-KYC.|
|Hold the annual general meeting.||An annual general meeting must be held for a PLC at least once yearly. Companies must hold their AGMs within six months of the end of the fiscal year.|
|Director’s report||All the information required by Section 134 will be used to prepare the director’s report.|
Consequences of non-compliance
|A fine of Rs. 50,000 for the firm and Rs. 1000 for each director per day of default is imposed if the person fails to get the commencement of business certificate.|
|A fine of Rs. 200 is assessed for each day of default or delay in filing MGT-7.|
|If the person fails to get the commencement of business certificate, a fine of Rs. 50,000 for the company and Rs. 1000 for each director for each day of default is levied.|
|Failure to submit DIN e-KYC carries a 5,000 rupee fine.|
|AOC-4 failure carries a fine of Rs. 200 per day of default or delay.|
Changes to application
Situations that call for application modifications and the timeframes needed to make those changes
You may need to modify or update your private limited company registration information in the following circumstances:
- Change in the business name: The corporation needs to schedule a board meeting to approve a resolution to alter the company name. The resolution should be voted on by the board of directors during the meeting. The board should also give a director or company secretary (CS) permission to evaluate the MCA database’s accessibility.
- Address change: A resolution is passed to convene a board meeting. Then, within 15 days of the resolution’s passage, Form INC-22 is submitted to the RoC.
- Change in contact information: A corporation may notify the RoC of any changes to the Managing Director, Directors, Manager, or Secretary of the company by filing an e-Form DIR-12 within 30 days (Event Date + 30 days) of the day on which the change occurs.
- Addition or removal of partners or directors: By filing Form DIR-12 with RoC within 30 days of the date the change happens, a corporation can intimate changes among the Managing Director, Directors, Manager, and Secretary of the corporation.
- Change in business ownership or constitution: A corporation may notify the RoC of any changes to the Managing Director, Directors, Manager, or Secretary of the company by filing an e-Form DIR-12 within 30 days (Event Date + 30 days) of the day of which the change occurs.
- Cessation of business locations: After discharging all of its debts and adopting a special resolution, a company may independently submit an e-form STK-2 to the Registrar, asking for the firm’s name to be struck off. The director must sign the STK-2 form, and the practising CS, CA, or CWA must also certify it.
Before we conclude, let’s first define a company registrar and discuss his function in incorporating a company.
Who is a company registrar?
Under Section 609 of the Indian Companies Act, which applies to all of India’s States and Union Territories, the RoC is a dignitary who is appointed. The primary responsibility for LLP registration in each state and the Union Territories is under the purview of the RoC. The registered companies and LLPs must adhere to the legislative requirements of the Companies Act, which is the responsibility of the RoC.
The RoC office manages the Registry of Records. These documents pertain to the businesses the Ministry of Corporate Affairs has on file. After paying the required access charge, members of the public may inspect these records. The Union government exercises administrative supervision over such authorities by employing the corresponding regional directors.
The Companies Registrar’s Function in the Formation of Companies
The most crucial duty in incorporating a corporation belongs to the company registrar. He is the one who receives the application, receives the paperwork, and determines whether or not you are eligible to acquire your certificate of company incorporation. His function can be divided into three categories as a result:
The registrar is in charge of correctly cataloguing all the paperwork and the application after receiving them. This will allow for future evaluation.
The registrar becomes completely operational after receiving company registration documents and the application. At this point, he will verify that all the paperwork is in order. He looks at three factors during the document assessment process:
- Are all the required papers on hand?
- Are the documents compliant with the MCA regulations?
- Is the application properly completed?
Issuing a certificate of incorporation for a company
The registrar determines whether to certify the company after carefully reviewing every aspect of the application and the supporting papers. If the evaluation has produced favourable results, they affix their signature to the company incorporation certificate. This indicates that the business has a certificate. The applicant is then sent this document. The applicant is informed if there is a problem and the application is refused.
As you can see, a PLC must comply with many regulations after Pvt ltd company incorporation. Someone unfamiliar with the business sector may find the procedure for a company’s post-incorporation compliances challenging. As a result, it is advised to get advice from a professional before incorporating your firms, such as Kanakkupillai.com, the web portal of Govche India Pvt. Ltd. Their Accounting, Bookkeeping, and Compliance (ABC) package, skillfully supervised by a group of knowledgeable lawyers, chartered accountants, and company secretaries, can assist you in comprehending all the legal facets of operating a corporation so that you always remain compliant.
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