Private Limited Company


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Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. For incorporating a private limited company, a minimum of two shareholders and two directors are required. A natural person can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company through Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.

Unique features of a private limited company like limited liability protection to shareholders, ability to raise equity funds, separate legal entity status and perpetual existence make it the most favourite type of business entity for millions of small and medium sized businesses that are family owned or professionally managed.

We can help you register a private limited company, one person company, nidhi company, section 8 company , producer company or Indian subsidiary. The average time taken to complete company formation is about 10 - 15 working days, subject to government processing time and client document submission. Get a free consultation for private limited company registration and business startup by scheduling an appointment with us.

Minimum Requirements of Private Limited Company:

  1. Minimum 2 shareholders
  2. Minimum 2 Directors
  3. The directors & shareholders can be the same person
  4. One of the directors must be Indian Resident
  5. Minimum authorised share capital is Rs. 1,00,000 (one lac)
  6. DIN (Director Identification Number) for all directors
  7. DSC (Digital Signature certificate) for all directors/shareholders & 1 witness

Features/Advantages of Private Limited Company Registration:

The liability of the shareholders in a private limited company is limited. In case of loss made by the company, only the investments made in the company will be lost, and the personal assets of the members will not be confiscated.
Private limited companies are registered under the Registrar of Companies (Roc). The information about such an entity can be obtained from the Ministry of Corporate Affairs website. As a result, vendors, suppliers, the public tend to trust this form of business over proprietorship or partnership.
Owing to the corporate entity structure, it becomes feasible for startups and growing businesses to grow funding from angel investors, venture capitalists, etc.
A private limited company has perpetual existence. It will continue to exist even if the present directors and members does not exist in the future. Its existence is separate from the existence of its owners.
The organized structure and regulations of compliances make it easy for private limited companies to raise credit from financial and banking institutions.
It is quite easy for a private limited company to issue fresh shares and transfer equity to new members, in addition to the transfer of existing shareholdings and directorship.

Documents required for Private Limited Company Registration

PAN for Indian Nationals Notarized Passport copy for Foreign Nationals
• Passport, Driver License, Aadhar (And) bank statement or Electricity Bill The two document must be valid, recent and less than month old
Rental agreement or Sale deed (And) copy of Electricity Bill, Property Tax Receipt No Objection Letter from landlord for use of Premises as Registered Office
Signed Digital Signature Application Documents in Hard Copy Other incorporation Documents Signed and uploaded as soft copy

Process for Company Registration

  • Select a unique company name
  • Digital Signature Certificate (DSC) for director
  • Director Identification Number (DIN) for director
  • Online Name approval
  • Submission of Incorporation form (SPICe) along With MOA & AOA

FAQs on Private Limited Company

No, new company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.
If you have all the documents in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar.
The Registrar of Companies (RoC) across India expect applicant to follow a few naming guidelines. Some of them are subjective, which means that approval can depend on the opinion of the officer handling your application. However, the more closely you follow the rules listed below, the better your chances of approval. First, however, do ensure that your name is available.
All directors must provide identity and address proof, as well as a copy of the PAN Card (for Indian Nationals) and Passport (for foreign nationals). No-objection Certificate must be submitted by the owner of the registered office premises
The DSC is an instrument issued by certifying authorities (TCS and n-Code are two of them) by which you can sign electronic documents. As all documents needed are electronic, partners need a DSC.
Yes, so long as the annual compliances are met, the private limited company will continue to exist. If you do not comply with the requirements, it will go dormant, until it is struck off the register altogether.
The can be divided into four categories: cost of setting a private limited company, cost of accounting and auditing, cost of compliance and miscellaneous expenses. At the very minimum, you can expect to spend Rs. 40,000 on all of these.
Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs or rupees and even lead to the blacklisting of directors.
These documents contain the rules, vision and mission of your organisation, and define, among other things, the exact business and the roles and responsibilities of shareholders and directors.
Yes, a minimum of two directors are needed for a private limited company. The maximum members can be 200. You can register as a One Person Company, if you are the sole owner of the company.
Any individual/organization can become a member of a private limited company including NRI/foreigners. Nonetheless, the individual must be 18+ above in terms of age and should hold a valid PAN card.
There is no minimum minimum required for starting a private limited company.
Yes, a salaried person can become the director in private limited, LLP or OPC private limited company. One needs to check the employment agreement if that allows for such provisions. In a lot of cases, the employers are quite comfortable with the fact that their employee is a director in another company.
No, one cannot convert an LLP into a Private Limited Company. The LLP Act, 2008 and the Companies Act, 2013, both don’t have any provisions on conversion of the LLP in a private limited company. However, if one wants to expand their business they can register a new Private Limited Company with the same name. The LLP Company needs to just issue a no objection certificate.
We can integrate a Private Limited Company in 15-20 days. The time taken also depends on the relevant documents provided by the applicant and the speed of approvals from the government. To ensure a speedy registration, kindly pick a unique name as the proposed Company name and also ensure that you have all the required documents prior to the starting of the registration process.
Yes, a NRIs and Foreign National can become Directors in a Private Limited Company. They need to get a DIN from the Indian ROC. They can also be a majority shareholder in the company. Provided at least one Director on the Board of Directors should be an Indian Resident.
The entire procedure is done online and one does not have to be present at our office or any other place for the incorporation. A scanned copy of the documents have to be sent via mail. They get the company incorporation certificate from the MCA via courier at the business address.
Yes, one can register the company at their residential address. One requires to submit the utility bill copy of the same.
Yes, it is a good to register a family member as a partner. At a later stage one can change this or transfer shares of the directors.