A name of the business in India, can be suffixed with words like ‘Private Limited’ or ‘Limited’, only if it is formed as a Company under the Companies Act, 1956/2013 and rules & regulations framed there-under. ‘Company’ form is not only matter of reputation but it also offers numerous benefits like ‘perpetual succession’, ‘Corporate Veil’, ‘Limited Liability’, ‘Transfer of Shares’, etc. Therefore, it is always advisable to form a Private Limited company with the expansion in business, the minimum requirements being atleast two members and paid up capital of Rs 1 lakh.
The company form of organization has been the only one to have ‘Limited Liability’ till 2008. Since 2009, now even partnership ca be registered as LLP (i.e. Limited Liability Partnership). But still Company form of organization still scores over LLPs for various other privileges available to companies only, like comprehensive regulations like Companies Act, 1956.
The procedure for Company Registration has been simplified over the years, with the launch of MCA21 project by Ministry of Corporate Affairs, Government of India, whereby company can be registered online through the legal professionals, whose Digital Signature are compulsorily required before one can upload forms online.
The first step toward Company Registration / Formation is to check for Name Availability, as similar names cannot be registered. But as a prerequisite, one should also apply for Digital Signature in the name of one of the promoter and get the Proivisional DIN (Director Identification Number) for all the proposed directors. Once name is approved, the promoters can take steps for registration by completing different formalities within 60 days of name approval, else the name need to be re-applied.