One Person Company

• Application For Digital Signature Certificate (DSC) and allotment of Director Identification Number( DIN ): First of all, the Directors have to apply for Digital signature and they will be allotted a DIN. Digital signature is an online signature used for filing of forms and DIN refer to Directors Identification number issued by MCA. If the directors already have a DSC and DIN, then this step can be skipped

• Name approval : You need to provide 3 different options for your company name to MCA, of which one will be selected. Names provided should ideally be unique and suggestive of company business.

• MOA & AOA, PAN & TAN submission: Once name is approved, one needs to draft Memorandum of Association and Articles of Association. Both MOA and AOA are filed with the MCA along with the shareholding statement. PAN is Permanent Account Number and TAN is Tax Deduction and Collection Account Number (TDS).

• Get incorporation certificate : It typically takes 10-15 days to form a Private limited company and get the Incorporation Certificate. Incorporation certification is a proof that company has been created. It includes your CIN number, PAN & TAN.

• Apply for Bank account: Then you need to apply with a bank to open your bank account.

Company registration process can be completed in 10-15 working days as follows:

• Preparation of documents – 2 days

• DSC Application – 2 days

• Name Approval through RUN – 3 days

• Filing of form – 3 days

• Approval – 5 days

• Copy of PAN Card of directors

• Passport size photograph of directors

• Copy of Aadhaar Card/ Voter identity card of directors

• Copy of Rent agreement (If rented property)

• Electricity/ Water bill (Business Place)

• Copy of Property papers(If owned property)

• Landlord No Objection Certificate (NOC ) (Format will be provided)

Minimum Requirements:

• Minimum 2 Shareholders

• Minimum 2 Directors are required

• Minimum Rs. 1 Lac Share Capital

• DIN for all the Directors

• Atleast one Director should be an Indian Resident

The name of your company is very important. It is the first impression to your buyers, suppliers and stakeholders. It should, therefore, be relevant, suggestive and attractive. There are various factors that you should keep in mind while naming your company.

• Short & Simple: The name should be concise and not be too long. People should be able to pronounce it easily and they should be able to remember your company’s name the first time they hear or read it.

• Meaningful: The name of your company should be related to your business. It should fit the company’s branding. For example, Infosys refers to information systems or Information technologies.

• Unique: Name of your company should not be same or identical to an existing company or trademark. You should ideally avoid plural version e.g., “Flipkart’s” or changing just letter Case, spacing or punctuation marks in an existing company name.

• Suffix: The name of your company should end with the suffix “Private Limited” in a case of a Private limited company.

• Should not be illegal / offensive: The name of your company should not be against law. It should not be abusive or against the customs and beliefs of any religion.

1. Income Tax Rates For Private Limited Company

• Companies with Gross receipts more than Rs. 400 crore
  Tax would be levied @30% + 4% Cess + Surcharge at applicable rates.

• Companies with Gross receipts up to Rs. 400 crore
  Tax would be levied @25% + 4% Cess + Surcharge at applicable rates.

• Note: The domestic companies can alternatively choose to pay tax under the following reduced rates

• Section 115BAA (domestic companies) – tax would be levied @22% + 4% Cess + 10% Surcharge.

• Section 115BAB (manufacturing companies)- tax would be levied @15% + 4% Cess + 10% Surcharge

• A Manufacturing generating company can now opt for Section 115BAB as proposed by the Budget 2020.
  Certain exemptions and deductions + provisions of MAT (Minimum Alternate Tax) will not be applicable in case of these reduced rates

2. Steps Post Company Incorporation

• Open bank account within 30 days

• Deposit Share Capital money within 30 days

• File commencement certificate within 180 days

• Issue Share certificates – within 60 days

• Appoint Auditor within 30 days

3. Other Registrations Required For A Private Limited Company

• Professional Tax: This is mandatory registration for all companies and commercial establishments. The professional tax registration should be taken for all the directors and the company.

• GST: If your business is providing services than GST registration is mandatory only if the turnover of your company is above Rs 20 Lakhs. In Case of trading or manufacturing of goods GST registration is mandatory only if the turnover of your company is above Rs 40 Lakhs.

• IEC: Import export code is applicable for businesses which are engaged in import and export of goods for trading purposes.

• Provident Fund (PF): If you are having more than 10 employees, PF is mandatory

• Employee State Insurance (ESI): The ESI scheme is applicable to all factories and other establishments as defined in the Act with 10 or more persons employed in such establishment.

4. Legal Compliances Required By A Company

• Income Tax Return

• TDS Return

• GST Return

• Professional Tax Return

• PF & ESI Return

• ROC Compliances