Overview of Private Limited Company registration in Bhubaneswar, Odisha
Starting a business of your own could be an exciting as well as a nerve-wracking situation for you, after all, it’s a big responsibility. However, at the same time, it is highly recommended for you pick a business structure that could allow you maximum benefits and save your energy to focus on growing your business. Therefore, for someone who believes in starting small & make their way upward is one of the highly recommended ways to start a private limited in India.
A private limited company registered in Bhubaneswar, Odisha is a popular business structure that is especially relevant for smaller companies & start-ups who are with higher risk and growth aspirations. It comes with multifarious benefits like limited liability, separate legal existence, better credibility, and ease in raising external funds. Unlike a partnership firm or an LLP, the day-to-day affairs of a company are managed by the directors of the Private Limited Company.
Definition of Private Limited Company in Bhubaneswar, Odisha
Section 2(68) of the Companies Act 2013 describes, a Private Limited Company as a company that-
- Places a restriction in its articles of association regarding the transfer of shares.
- Limits the total number of members to up to two hundred.
Therefore, in the case of a private limited company, the number of total shareholders cannot be more than 200 at a time, and the transfer of shares is restricted to be traded among the public in general. Therefore, a private limited company is essentially suitable for smaller companies.
Private Limited Company registration in Odisha
Odisha is formerly known as Orissa till 2011. It is located in the Eastern part of our country. 1st April is observed as Odisha Day. It is the 8th largest state in terms of area and the 11th largest state in terms of population. Odisha is the 3rd largest in terms of scheduled tribes, and population in India. This state shares its boundaries with West Bengal and Jharkhand in the north, Chhattisgarh in the west, Andhra Pradesh in the south, and the Bay of Bengal (2nd largest subdivision of India after the Arabian Sea) in the east. The region is also popularly known as Utkala (Ancient name), and this name also has its imprint on India’s national anthem,” Jana Gana Mana”. Demographically, various languages are spoken in this state, but amongst them, Odia is majorly spoken by the native people.
Odisha is an attractive tourist destination of various architectural wonders. Odisha is infamous for its historical heritage sites and enchanting views. From beaches to pilgrimage and monuments, Odisha offers a plethora of enthralling endeavors to travelers who visit from all over the world. There are a ton of places to attract tourists like Puri (one of the char-dhams or four holy places for Hindus), Bhubaneshwar (the temple city of India), Chilika lake in puri (India’s largest brackish water lagoon), Jaganath Temple in puri (World famous chariot festival in the month of June-July), Konark Temple (UNESCO World Heritage Site), Rourkela (steel city of Odisha) and many more.
According to the survey conducted by Forest India in 2012, Odisha comprises 31.41% of the state’s total area. Due to the favorable climate conditions, Odisha’s moist and evergreen tropical forests are suitable ecosystems for wild orchids. Odisha consists of various national parks, wildlife sanctuaries, and bio reserves such as Simlipal National Park (the highest tiger population in the state), Chandaka Elephant Sanctuary, and Bhitarkanika National Park, etc. The backbone of Odisha lies in the villages and farmers. The state government initiated various innovative schemes to increase farm productivity like the Jeebika scheme, Digital Mandi Yojana, Mobile Veterinary Unit (1st state to organize animal health camps), Biju Krushak Yojana, and many more. During the crisis times, the state government sponsored the Indian hockey team, which led to remarkable achievements for the country through their spectacular performance in the Tokyo Olympics.
Capital- Bhubaneswar
Top Business Idea in Odisha
Odisha’s main economy relies on agricultural-based products, production, and cultivation. However, by the collaborative efforts of inhabitants and government, State is transiting into business strata. Odisha is becoming the best place for entrepreneurs as the government is providing the ease of doing business and other essential facilities. The main realms in which lucrative business models can be set up are tourism, hotels, restaurants, transport, communication, insurance services, and other financial profiles. Given below is the list of feasible and profitable business ideas with less investment that can be commenced on a small scale.
Candle-making business
This is the most affordable business with mere investment; investors or entrepreneurs can initiate this business model. To fulfill the high requirement of candles in the state candle making business is a good startup idea. Moreover, there are different types of candles available such as traditional white, decorative, scented, and many other types. Even the raw materials used for the candle-making process are easily available in the market.
At the initial stage, you can start making candles at your home and sell them locally. After that, get in touch with the wholesalers, grocery stores, vendors, and many other places where the demand is high. There is already a huge market for decorative candles as a gift item. Once you have started making good connections in the local market, This small investment that you have made will gradually lead you to a massive profit.
Cashew nut processing business
The cashew nut processing business is a profitable and cost-effective business that can be initiated with a small investment. As we know, Orissa is a famous state for cashew nut production, so there is a high demand for cashew nuts in Odisha. First, let’s understand the market before starting the business. Cashew nuts need proper processing and finishing it is necessary as people do not consume raw cashew nuts. Day by day, people are getting more health-conscious, so they demand proper process cashews which contain multiple health benefits. But as per the demand for the cashew nuts, the supply of cashew nuts is not up to the mark. Therefore, before starting the business of cashew nuts, choose a preferred location where you can get raw materials. The small-scale business in providing a handsome salary.
Jute bag-making business
If you want to open a small-scale business, then preferably, a jute bag-making business is the best. Odisha is popular for jute production. Jute has significance in our daily lives, such as in the form of jute bags, chairs, tables, and many more. Hence has always been an integral part of our daily life. It can be a productive and cost-effective business if the raw materials are used effectively. From the business perspective, it requires a small investment, but you can earn a lot of money through its outcome. You can quickly start this business in Odisha as jute has been an integral part of our daily lives and is easily available all over the state.
Startup Ecosystem in Odisha
Over the past few years, several initiatives have been implemented by the Government of Odisha, and these Initiatives have majorly impacted the ease of doing business in Odisha. TheDepartment for Promotion of Industry and Internal Trade (DPIIT) has ensured that the state has a vibrant startup ex. Startup Odisha is the state’s prominent initiative to create a favorable ecosystem for the startup to aspire and flourish.
State provides the firm financial support for the investors or entrepreneurs for establishing both public and private institutions. Even the state has extended its support to the universities by conducting various training programs for the faculties to equip them in the region of entrepreneurship and innovation. The state has also planned to create an annual campaign named the startup Odisha Yatra. The main aim of this platform is to inspire and educate the students, innovators, and entrepreneurs of remote areas to realize the importance of entrepreneur goals which will be encouraging for the future of our state.
Let’s talk about the financial aid provided to the startups. The Odisha youth innovation award gives an amount of ₹ 50000/- for thinking of an innovative business idea, ₹ 1 lakh at the prototype stage, and INR 3 lakh at the scale-up stage to a large number of startups every year.
Salient Features of a Private Limited Company registered in Bhubaneswar, Odisha
Upper Ceiling for Members
The Companies Act 2013 provides that in order to incorporate a Private Limited Company there must be at least two members who shall subscribe their names to the MOA of the company, while the maximum number of members cannot go beyond 200.
Number of directors
Again, as per the Act 2013, it shall be compulsory for every Private Limited Company to have at least two directors out of which one should be a resident director i.e. who resides for at least 182 days in India in the previous year.
Body Corporate
A Private Limited Company is a body corporate having a separate legal status in the eyes of the law, which enjoys limited liability for its members, perpetual succession & separate property from its members. Limited Liability, which means that whenever the company is insolvent or facing losses, the members of the company shall not be liable to pay beyond their agreed amount of contribution.
Unique Name & Suffix‘
Every proposed Private Limited Company must have a unique name that signifies the object or nature of the business. Further, it shall be compulsory for every Private Limited Company to add the suffix ‘private limited’ after its name in every official letter and publication.
Index of members
Since the number of members in a Private Limited Company is limited, a Private Limited Company doesn’t necessarily need to maintain an index of its members as per the Act.
Eligibility Criteria for Private Limited Company Registration in Bhubaneswar, Odisha
i. Minimum amount of shareholders & directors- For the purpose of starting a private limited company, there must be at least two members who subscribe to the Memorandum of Association of the company and at least two directors on its board. There cannot be more than 200 members in a Private Limited Company.
ii. Resident Director- The another requirement to incorporate a Private Limited Company in India is out of the minimum of two directors in the company, there must be at least one director who is a resident of India in the previous financial year, which means that such director must have resided for at least 182 days during the immediately preceding year irrespective of their citizenship. Such a director shall be primarily responsible for managing applicable compliances on time.
iii. Registered Office Address- As per the Companies Act 2013, every company should have a registered office within a period of 30 days from the date of incorporation for all official communication purposes, for which a proof of address must be produced within such time to the MCA. Further, within a period of 30 days, the company needs to have a registered office address and proof of address must be submitted online.
iv. Legal Object- The proposed Private Limited Company shall only be incorporated for legal purposes and not with an aim to pose any threat or misuse or harm the society. The legal object of the proposed company should be expressed clearly in the object clause of the drafted Memorandum of Association (MOA) of the company.
v. DIN for all Directors- As provided under sections 153 and 154 of the Companies Act, 2013, it is compulsory for every individual who wishes to become a director to hold a unique Director Identification Number or DIN, which could either be made by filling form DIR-3 or along with the incorporation form SPICe+ with MCA.
vi. Digital Signature Certificate (DSC)- As the whole process of registration has been made completely online, the directors of the proposed company must verify the genuineness of the documents by signing them digitally. For this, they are required to acquire a Digital Signature Certificate from any government-approved certifying authority, a list of which is available on the MCA portal.
vii. Certificate of Compliance- Further, the proposed company shall also be required to submit a certificate of compliance from a professional such as a CA/CS/CMA, signifying that all the requirements related to incorporation have been genuinely fulfilled.
Benefits of incorporating a Private Limited Company in Bhubaneswar, Odisha
Limited Liability of Shareholders
Unlike a sole proprietorship firm or a partnership firm, a Private Limited Company offers the benefit of liability to its members. In simple words, the debts and assets of a company are separate from its members, thus in the event, the company goes through losses or debts, the personal assets of the members are protected from such debts and could only be responsible till their agreed amount of contribution.
Separate Legal Existence
A Private Limited Company enjoys a separate legal status that can hold its own assets or liabilities, enter into contracts or sue them, and even has perpetual existence that will continue to live despite any death or disability of its members.
Clear Distinction between Management and Ownership
In a Private Limited Company, there is a clear distinction between management & ownership of the company. Since the day-to-day affairs are handled by the management, the directors are responsible for its functioning, while the ownership of the business is vested in the shareholders which prevents clashes & promote growth.
Ease in Raising Funds
Holding a highly legally business structure, banks & financial institutions prefer to issue loans to Companies as they come with benefits such as ease in transfer of ownership & limited liability to its members. VC firms, angel investors, & HNIs consider it safer to invest in a private limited company than any other business entity.
Credibility
Companies incorporated with the Registrar of Companies (ROC) under the Companies Act 2013, are subject to periodical compliances and even submit a copy of financial statements & annual returns providing a clear picture of the affairs of the company.
Process of Private Limited Company Registration in Bhubaneswar, Odisha
Step 1-Apply & Obtain Digital Signature Certificate in Bhubaneswar, Odisha
As a first step, the applicant company needs to apply for a Class 3 category digital signature certificate from a government-recognized certifying authority, the list of the government-approved authorities provided in the portal of the Ministry of Corporate Affairs. Having a DSC is compulsory because it enables the applicant company to sign & e-verify its documents & attachments online.
Step 2-Application for the Allotment of the Director Identification Number in Bhubaneswar, Odisha
For the purposes of incorporation of a Private Limited Company in Bhubaneswar, Odisha, at least two directors must possess a DIN. A DIN could be applied in two ways-
i. File e-form DIR-3 for the allotment of DIN in Bhubaneswar, Odisha
For a director who wishes to become a director in an existing company can make an application for allotment of DIN in e-form DIR -3 from the MCA portal. The applicant director will be required to attach certain documents like proof of identification such as PAN, Aadhaar Card, etc, & proof of residence.
ii. Apply for DIN through the incorporation form SPICe+ in Bhubaneswar, Odisha
With the effect of a notification that arrived on 23.02.2020, in the case of a new Private Limited Company, DIN could be applied to up to three directors along with the incorporation form SPICe+ form.
Step 3-File & Submit the form for Incorporation on the MCA portal in Bhubaneswar, Odisha
Launched in the year 2020, the SPICe+ is a web-based integrated company incorporation form that has been launched as a result of joint efforts of 3 Central Govt Ministries & Departments. (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance) and One State Government (Maharashtra), with an intent to promote ‘Ease of Doing Business.
It comes in two parts –Part A & Part B, which offer 10 services thereby saving time, energy & costs and easing the process of registration.
Part A of the SPICe+ includes – Reservation of Unique Name (RUN) in Bhubaneswar, Odisha
Part A of the SPICe+ is the Reservation of the unique name for the proposed applicant name, which could be used for either the incorporation of a new company or for changing the name of an existing company. However, it is advised not to choose any name which is prohibited under the National Emblems Act 1950. Further, the applicant company needs to ensure that the chosen name doesn’t infringe the trademark of any existing company.
Once Part A is completed, the user has to choose the process further-
- Submit for name reservation by making payment of a fee;
- Proceed further to fill Part B or
- Cancel
Part B of the form contains-
- Application for DIN allotment;
- Application for PAN and TAN;
- Application for EPFO registration;
- Application for ESIC registration;
- Application for Professional tax registration (only for the state of Maharashtra);
- Application for allotment of GSTIN allotment;
- Application to open a business bank account
For filling all these above forms, the prescribed application forms have to be downloaded in a PDF format, filled, thoroughly checked and verified, and digitally signed before finally submitting the forms along with required documents & attachments.
The MCA has also relaxed the requirement related to payment of any fee for incorporation till the authorized capital up to Rs. 10Lakhs of authorized capital.
Step 4- Filling & Submission of MOA & AOA in Bhubaneswar, Odisha
Memorandum & Articles of Association (MOA & AOA) are the primary documents of the company aimed for the purpose of laying bye-rules & regulations of the proposed company in dealing with its external as well as internal matters in its day-to-day working. The format for MOA & AOA has been prescribed in the form e- MoA (INC-33) and e-AoA (INC-34) respectively. After putting digital signatures by the subscribers to the Memorandum and Articles of Association, they could be submitted to the portal for final submission.
Step 5-Approval & Obtaining a Certificate of Incorporation (COI) in Bhubaneswar, Odisha
After the verification of the application form, the approval authority will verify the documents & attachments and will grant the Certificate of incorporation which will be the ultimate evidence of approval of registration. The Certificate of Incorporation will be in pdf format with other certificates such as TAN, PAN & GSTIN certificates in the registered email address.
Documents Required for Private Limited Company Registration in Bhubaneswar, Odisha
Documents of prospective members & Directors
i. Copy of ID proof such as Aadhaar, PAN card, Driving License, etc.
ii. Proof of Residence- All the proposed members & directors shall be required to submit a copy of a valid proof of residence that could be any of the documents such as a Voter’s ID/ Passport, Driver’s license / Aadhaar Card. However, the details related to the name in the proof of residence & PAN should exactly be the same. If there is any mismatch in details, it should be corrected before submission to RoC
iii. Copy of utility Bills- Copy of utility bills to verify the address proof which may include documents such as the latest bank statement, telephone bill, mobile bill, electricity bill, gas bill, etc.
iv. Passport-sized photographs on white background with specimen signature (blank document with signature [directors only])
Documents of prospective Private Limited Company Registration in Bhubaneswar, Odisha
i. Proof of registered Address- Every Private Limited Company needs to submit identification proof for the registered address of the company during registration or within 30 days of its incorporation. In case the property is an owned property or purchased, a copy of the sale deed shall be required to be attached. On the other hand, if it’s rented, a copy of the rental agreement or lease deed should be submitted instead.
ii. In case the property is rented, a copy of NOC from the owner expressing no objection over the use of the property should be attached.
iii. Copy of the Utility bills of the registered office such as electricity or telephone bills. However, these Utility bills should not be older than more than 2 months.
Post Compliances after Incorporation in Bhubaneswar, Odisha
Once you successfully incorporate your private limited company in Bhubaneswar, Odisha, you need to be careful of the post-incorporation compliances, failing to fulfill which could lead to hefty penalties. Provided below are some of the key post incorporation that has been provided below-
i. Verification of the Registered Office Address- Every Private Limited Company must submit proof of registered office in e-form INC 22 within 30 days of the incorporation of the Private Limited Company. The e-form should be accompanied by all the required necessary documents & attachments.
ii. Certificate of Commencement of Business through INC 20 A- Next, the Private Limited Company must obtain a certificate of commencement of business by making an application by submitting within 180 days from the date of incorporation to the effect that each subscriber to the memorandum has consented to the share value taken by them.
iii. Appointment of First Auditor- Further, the Private Limited Company needs to appoint its first statutory auditor before the first Annual General Meeting of the Company, who will hold office till the sixth AGM until and unless he receives ratification or resignation concerning registration.
iv. Board Meetings- It shall be compulsory for every Private Limited Company to conduct at least two Board meetings in a financial year. It is also be noted that for every board meeting minutes should be prepared and maintained in the minute book of the Company. Further, the directors of a private limited shall attend the Board meetings.
v. Disclosure of Interest- It shall be compulsory for all the directors of the company to disclose any conflicting interest before the first Board Meeting of the company in e-form MBP-1.
vi. Annual Financial Statements- Finally, it shall be necessary for every Private Limited Company to file annual financial statements in the e-form AOC 4 every year within 30 days of the end of the Annual General Meeting.
Conclusion of Private Limited Company registration in Bhubaneswar, Odisha
Therefore, a Private Limited Company registered in Bhubaneswar, Odisha offers various benefits such as the benefit limited liability and perpetual succession procedural flexibility to its directors to manage their internal organization & manage their business efficiently. Further, the process of a Private Limited Company limited registration has been simplified under Ease of Doing Business which could be completed in four-five steps. Complete your process of private limited company registration & start your journey today!
