Private Limited Company Registration

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  • Two DSC & up to two DINs
  • Name Reservation for your Company
  • Company Agreement
  • MOA & AOA
  • Company PAN & TAN
  • Corporate Identification Number {CIN}
  • Bank account opening

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Private Limited companies are one of the most popular business structures in India. About 93% of companies are registered as Pvt. Ltd Company. Their tremendous benefits and least requirement make it an easy and beneficial business stricture. This article shares all the important details you should know about Pvt. Ltd Company Registration.

What is Pvt. Ltd Company Registration?

Private limited companies are one of the most efficient business structures registered as per the provisions of Company Act, 2013. These worthwhile companies are regulated by the Ministry of Corporate Affairs and governed under the rules of Companies Incorporation Rules, 2014.

Incorporated with the least requirements such as 2 shareholders and 2 directors, it is the first choice of growing business and startups in India. A natural person can act as both shareholder and director whereas corporate legal entities can only be part of a company as a shareholder. Apart from the ease in incorporation, it has various other benefits such as separate legal entity, perpetual succession, limited liabilities, etc.

What are benefits of Pvt. Ltd. Company Registration?

Private limited companies have various benefits enlisted as follows:

1. Limited Liability of the Shareholders:

Registering as a private limited company benefits the shareholders with limited liability to their personal assets. This means, in case the company is suffering from loss or debt only the investments made in company would be used to clear the debt and loss and the personal assets of the shareholders remains protected.

2. Separate Legal Entity:

A registered private limited company is itself a separate legal entity and posses all the rights to sue or be sued. It acts an artificial person that has its own PAN and can buy a property at its name.

3. Easy Expansion:

Registered Pvt limited company is considered as a corporate entity that attracts various angel investors and venture capitalists that helps them to expand and raise their funds for the growth of their startups and business.

4. Enhanced Value in Market:

A registered company is considered more trustworthy as compared to the non-registered ones. Information regarding the registration of Pvt. Ltd. Company can be easily obtained from the website of Ministry of Corporate Affairs. Vendors, suppliers and investors trust them over the other business structures. As a result, it enhances the brand value of the company amongst the customers and other investors and suppliers.

5. Ease in transfer of ownership:

It is quite easy for the private limited companies to transfer their equity to new members and issue fresh shares.

6. Perpetual Succession:

Private limited companies are considered as separate legal entities and are separate from the existence of their owners which means they cannot be dissolved or end because of the death, retirement or insanity of any of their member/ director/ shareholder.

7. More Credit Availability:

Private limited companies can easily raise their credits with help of financial institutions and banks due to their organized structure and strict regulations of the compliances.

How to register a Pvt Ltd Company?

As far we have discussed what are private limited Companies and its benefits. Now let us look what are the requirements, documents and procedure for the Pvt Ltd Company Registration.

Minimum Requirement for Pvt Ltd Company Registration:

1. Directors:

  • Minimum: 2 directors
  • Maximum: 15
  • Out of all the directors at least one director should be an Indian Resident.

2. Shareholders:

  • Minimum: 2 shareholders
  • Maximum: 200 shareholder

3. No capital share requirement

4. Mandatory DIN (Director Identification Number) of all the directors

5. Mandatory DSC (Digital Signature Certificate) for atleast one director

Documents required for Pvt Ltd Company Registration:

For the Directors: Indian Resident

Here is the list for mandatory documents for the Indian Nationals Directors of the Company:

PAN Card: A copy of PAN of all the proposed directors would be required for the company incorporation. PAN is short-term used for the Permanent Account Number of a person. It contains a unique identification number issued to a Taxpayer citizen by the Income Tax Department in India. Therefore, it is mandatory for all the directors to submit their PAN card during the registration process.

Check Point: PAN card details including the name would be used by the MCA throughout the registration process. In case of some mistake such as wrong spellings or surname change due to marriage should be checked and corrected before submission.

Address Proof: all the proposed directors of the company have to submit their address proof. The address proof must contain the full name of the director as mentioned in his PAN card and his current address. In addition, the documents should be latest and not older than two months. Following is the list of documents that can be used as an address proof for the Indian Citizens:

  • Voter card
  • Aadhar Card
  • Passport
  • Electricity Bill
  • Ration Card
  • Telephone Bill
  • Driving License

Residential Proof: along with the address proof, residential proof of the directors would be used during the registration process. Just like address proof it must contain the name of the designated director as mentioned in his/her PAN card and should not be older than two months. Here is the list of documents that can be used as a residential proof by the directors:

  • Bank Statement
  • Electricity Bill
  • Mobile bill

For the Foreign National/NRI Directors:

Here is the list for mandatory documents for the Foreign Nationals/NRI Directors of the Company:

Passport: Passport is mandatory for the foreign nationals to submit as an identity proof. It must be notarized in the issued country. In case date of birth of the director is not mentioned on the Passport, then he has to submit an additional document verifying his D.O.B. Further is the documents are in some other foreign language apart from English, a notarized copy of translation into English would be submitted along with the same document.

Address Proof: a notarized copy of address proof has to be submitted by the foreign nationals. It must contain the name and address of the directors as mentioned on his/her passport. Additionally it should not be older than one year. Following documents can be used by them as an address proof:

  • Driving License
  • Bank Statement
  • Government issued identity containing address
  • Residence Card

Check Point: The document should be in English language or should contain a notarized translation document along with it.

Residential Proof: Along with the address proof foreign national have to submit a residential proof that validates the current address of the proposed director. Just like address proof residential proof should also contain name and residential proof as mentioned on his passport and should not be older than one year. Following documents can be used by them as a residential proof:

  • Bank Statement
  • Electricity Bill
  • Mobile bill

Check Point: The document should be in English language or should contain a notarized translation document along with it.

Proof for Registered Office:

A proof for registered office is submitted along with other documents or can be submitted within the 30 days of company incorporation. Here is a list of documents required for registered office:

  • Registration Document of the premises in the name of the respective company
  • Rent agreement along with rent paid receipt which is not older than a month.
  • Any utility bill such as electricity, gas, telephone bill that is not older than 2 months.
  • A notarized no objection certificate from the owner of the residence.

Process for Pvt Ltd Company Registration

Step 1: Company name Selection

Step 2: Obtaining DSC

Step 3: Obtaining DIN

Step 4: Name Approval (RUN)

Step 5: Submission of SPICe Form

Step 6: Apply for PAN, TAN and Bank Account

  • 1. Company Name Selection:

    First of all finalize your company’s legal name. The name should be unique and non-offensive to the provisions of the Companies Act, 2013. Check the name availability through the MCA portal.

  • 2. Obtaining DSC

    It is a mandatory document required to sign all the documents such as ROC compliance e-forms, e-income tax returns, etc in an electronic format. All the directors must obtain their DSC that would be used to sign the registration application.

  • 3. Obtaining DIN

    DIN is a short-form used for Director Identification Number. Just like DSC it is also mandatory for all the directors to obtain their DIN. Before, the DIN application was submitted individually but now can be submitted along with the SPICe form at the time of company incorporation.

  • 4. Name Approval (RUN):

    Form RUN here stands for Reserve Unique Name. It is an application filed for name approval of the company with the Ministry of Corporate Affairs.

  • 5. Submission of SPICe Form

    Once the name approval has been done, you have to submit the application for company incorporation through SPICe Form to the MCA along with Memorandum of Association and Article of Association.

    As per the latest Amendment AGILE (INC-35) is submitted along with the SPICe form that provides registration for EPFO, ESIC and GST for the proposed company.

    After the verification of all the documents, Certificate of Incorporation along with CIN is provided to the company.

  • 6. Apply for PAN, TAN and Bank Account:

    Apply for PAN of the company and open a bank account to start the transactions.

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