A private limited company registration can be a difficult and complicated procedure, especially for new entrepreneurs. The Companies Act, which controls the company incorporation procedure, specifies a number of steps that can take a long time and be challenging to understand. In this blog post, we’ll talk about some of the typical difficulties that organizations go through while private limited company registration.
Choosing the right name
- The first stage in the registration process is to come up with a unique name for the firm. The name must not be confusingly similar to any brand name or corporate name already in use.
- Finding a name that is both original and relevant to their business aims and objectives can be difficult for many businesses.
Obtaining Digital Signature Certificates
- The next step in the registration procedure is to get digital signature certificates (DSCs) for the potential company directors. This is an essential requirement for submitting the application for private limited company registration.
- Getting DSCs can be difficult for many business owners, especially if they are not tech-savvy. But this procedure can be simpler if the entity hires the entity who provides legal services.
Obtaining Director Identification Number (DIN)
- A Director Identification Number (DIN) must also be obtained by the potential directors of the organisation. The Ministry of Corporate Affairs assigns this unique identifying number. The DIN is necessary for all interactions with the Registrar of Companies (ROC) as well as the submission of numerous papers pertaining to the company.
- The Memorandum of Association (MOA) and the Articles of Association (AOA) are two documents that must be drafted as part of the private limited company registration procedure. These documents provide a summary of the company’s goals, authority, and regulations.
- Many entrepreneurs find preparing these documents difficult, especially if they are unfamiliar with legal terms. But this procedure can be simpler if the entity hires the entity who provides legal services.
Filing the application
- Once all of the documents are ready, the application for private limited company registration must be filed with the Registrar of Companies. This can be a time-consuming process, and any errors or omissions may result in application delays or rejection.
- To avoid such errors and omissions, it is advisable for the entity to hire an entity who provides legal services for easy and errorless submission of private limited company registration application.
Compliance with regulations
- After the company registers, there are a number of rules and compliance requirements that the company must follow, including obtaining a PAN and TAN, adhering to GST regulations, and keeping accurate accounting records. Many business owners find it difficult to adhere to these rules, especially if they are unfamiliar with the legal and accounting standards.
- In such cases it is advisable for the newly-incorporated company to hire a Chartered Accountant who can guide them with the timely and accurate compliance of company act, income tax act, GST regulations, etc.
Therefore, it should be noted that forming a private limited corporation might be difficult and complicated. Entrepreneurs can overcome these difficulties and effectively incorporate their business by studying the procedures and getting professional assistance. Compliance with all regulations and criteria is critical to ensuring that the organisation is legally compliant and runs effectively.
We, at FinAccLe provides detailed assistance that will ensure the effective and timely private limited company registration.