Overview of Private Limited Company registration in Dehradun, Uttarakhand
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 Dehradun, Uttarakhand 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 Dehradun, Uttarakhand
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 Uttarakhand
Uttarakhand is officially known as Uttaranchal till 2007. Uttarakhand’s name is derived from the scriptures’ Sanskrit words, i.e., Uttara means ‘north’ and Khanda means ‘land.’In short means’ Northern Land’. As per the historical Hindu scriptures, Uttarakhand is a combined region of “Kedarkhand” (At present known as Garhwal) & “Manaskhand” (At present known as Kumaon). Uttarakhand is located in the northern part of India. Uttarakhand is also named “Devbhumi” (which means the Land of the Gods). It is named so because of its cultural and religious significance and due to the presence of various Hindu temples and pilgrimage sites found across the state. Uttarakhand is a well-known and enthralling tourist place, especially due to the natural environment of the Himalayas, the Bhabar, and the Terai regions.
This state shares its international boundaries with Tibet (an autonomous region of China) in the north, Nepal (Sudurpashchim Province) in the east, and National boundaries with Uttar Pradesh in the south and Himachal Pradesh in the west and northwest. Uttarakhand constitutes 86% mountainous and 65% covered area by forest. The Jim Corbett National Park(launched in 1973) is India’s oldest and most prestigious national park. This state ranks 20th in terms of the country’s population growth with the contribution of 0.83% of the population on 1.63% of the land. Demographically, various languages are spoken, but among them, the Hindi language is mainly spoken by the native people of Uttarakhand. However, based on place of origin in the Garhwal and Kumaon region, Garhwali and Kumaoni are also spoken, respectively.
Uttarakhand’s beauty is inherent in things like the huge mountains of the Himalayas, the sacred rivers, the spiritual regime, stunning and enchanting landscapes, the colorful resonating rhythms of nature, and exhilarating history molded in the ancient stones, a mesmerizing evergreen flora, and fauna. Hence, these things make Uttarakhand a perfect place for nature enthusiasts, mountaineers, bike riders, rock climbers, spiritually elevated fanatics, and many more. Apart from being an enthralling tourist spot, Uttarakhand is also blessed as a goldmine for anthropologists, historians, linguists, geologists, etc. In terms of economy, Uttarakhand is India’s 2nd fastest-growing state, and agriculture is one of the major contributing sectors of the economy of Uttarakhand.
Capital- Gairsain (Summer) and Dehradun (Winter)
Top Business Ideas in Uttarakhand
Uttarakhand is one of the best tourist destinations in North India. Uttarakhand is a highly exhilarating state and credible state to seek the attention of various investors and entrepreneurs. Thereby it attracts several opportunities to spend time in the lap of nature. Uttarakhand is well-known among the best Indian states on the kernel of providing ease of doing business. As per the latest records of the growth of the Uttarakhand manufacturing sector, it accounts for 33% of the State GSDP. Uttarakhand is ranked 1 in the list published by the Export Preparedness Index 2020.
Adventure Tourism Business
Uttarakhand is known for its great mountains of the Himalayas, elegant rivers, various holy pilgrimage sites, and many more. Due to this, it attracts many tourists and adventure enthusiasts interested in sports such as rock climbing, skiing, ice skating, sailing, parasailing, canoeing, yachting, trekking, mountaineering, kayaking, and hiking, and various other favorite adventure sports such as paragliding, skydiving, rafting, and bungee jumping. You can develop an adventure sports business idea to utilize this potential of Uttarakhand, and this is a lucrative business idea with a promising future.
Fish Farming Business
Fish Farming is an essential contributor to the economy of Uttarakhand. Besides the agriculture and tourism industries, Fish farming is also an integral part of the state’s economy. Some of the most in-demand and grown fishes are Mulley, Monstrous Goonch, Tangra, Indian Trout, Butchwa, etc. Hence, this fishing business requires specialized knowledge, necessary skills, and careful monitoring skills. This commercial fish farming business is gradually increasing its business venture globally.
Restaurant Business Idea
Uttarakhand is a place for nature lovers and adventure enthusiasts. Hence, it considerably aggregates India’s most famous hill stations such as Mussorie, Nainital, Dhanaulti, Lansdowne, Sattal, Almora, Kausani, Bhimtal, Pauri, and Ranikhet. Apart from this, Uttarakhand has 12 National Parks and Wildlife Sanctuaries, such as Jim Corbett National Park(2nd oldest), Rajaji National Park, Nanda Devi National Park, Gangotri National Park, Valley of Flowers National Park, etc. These national parks and wildlife sanctuaries comprise 13.8 percent of the state’s total area. Here, you can set up a restaurant with the essence of regional inclusion of food specialty to serve the tourists (native and foreign) as well as the local people. First, set up a small business at a specific tourist hotspot, then stretch the reach to different stations as productivity blooms.
Startup Ecosystem in Uttarakhand
The Uttarakhand state has tipped the performance of India’s growth in the startup ecosystem by providing immense opportunities, incentives, and credible support to the startups. The citizens and the inhabiting students are inspired to lead this entrepreneurship, and the state of Uttarakhand regularly provides alternative endeavors to create a productive environment for innovative and creative business ideas.
The major benefit aspect is that the state is providing the ease of doing business which is supported by various vital institutions, including government departments, namely the Directorate of Industries at the state level and the District Industries Centers (DIC) at the district level is set up to cultivate business reforms and ideas in Uttarakhand. Besides this, The State industrial Development Authority (SIDA) holds the obligation of regulating, controlling, and providing a sustainable industrial development parameter in the state to maintain the decorum of uniformity, stability, and harmony.
As well as prominent educational institutions like the Indian Institute of Technology – Roorkee, Indian Institute of Management (IIM)- Kashipur, and National Institute of Technology (NIT) provide a platform for students to evolve as entrepreneurs. The State of Uttarakhand published its Startup Policy in 2018 and purposefully replaced the policy broadcast in 2017. This Uttarakhand Startup policy focuses on areas that benefit the state’s entrepreneurs in finding the best business ideas and promoting investment in incubation and startups. The state has established a body known as the startup council, which comprises the primarily selected members from government and private backgrounds, to monitor, regulate, maintain and implement the Startup Uttarakhand Initiative. The purpose or vision of this initiative is to stimulate the ecosystem to feed the spirit of entrepreneurship in the state.
Salient Features of a Private Limited Company registered in Dehradun, Uttarakhand
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 Dehradun, Uttarakhand
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 Dehradun, Uttarakhand
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 Dehradun, Uttarakhand
Step 1-Apply & Obtain Digital Signature Certificate in Dehradun, Uttarakhand
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 Dehradun, Uttarakhand
For the purposes of incorporation of a Private Limited Company in Dehradun, Uttarakhand, 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 Dehradun, Uttarakhand
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 Dehradun, Uttarakhand
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 Dehradun, Uttarakhand
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 Dehradun, Uttarakhand
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 Dehradun, Uttarakhand
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 Dehradun, Uttarakhand
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 Dehradun, Uttarakhand
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 Dehradun, Uttarakhand
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 Dehradun, Uttarakhand
Once you successfully incorporate your private limited company in Dehradun, Uttarakhand, 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 Dehradun, Uttarakhand
Therefore, a Private Limited Company registered in Dehradun, Uttarakhand 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!
