{"id":1236,"date":"2019-11-19T09:48:23","date_gmt":"2019-11-19T09:48:23","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=1236"},"modified":"2025-01-24T18:07:57","modified_gmt":"2025-01-24T12:37:57","slug":"procedure-for-registration-of-private-limited-company-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/procedure-for-registration-of-private-limited-company-india\/","title":{"rendered":"Private Limited Company Registration Procedure in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A Private Limited Company is a\ntype of entity in India which holds many advantages over any other form of existence\nin our country. Furthermore, as per statistics, about 93% of the entities\nregistered in India are in the form of a Private limited company. In other\nwords, this form of entity is very popular and is opted by major entrepreneurs\nand industrialists.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-registration-of-private-limited-company-india\/#What_is_a_Private_Limited_Company\" >What is a Private Limited Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-registration-of-private-limited-company-india\/#Advantages_of_Private_Limited_Company_Registration\" >Advantages of Private Limited Company Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-registration-of-private-limited-company-india\/#Minimum_necessities_to_start_a_Private_Limited_Company\" >Minimum necessities to start a Private Limited Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-registration-of-private-limited-company-india\/#Documents_required\" >Documents required<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-registration-of-private-limited-company-india\/#Steps_to_Procure_Private_Limited_Company_Registration\" >Steps to Procure Private Limited Company Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-registration-of-private-limited-company-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Private_Limited_Company\"><\/span>What is a Private Limited Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Private Limited Company is a\nkind of entity in India which is privately held by businesses. Additionally,\nthis type of entity limits owner liability to their shareholdings, the total\nnumber of shareholders of the company to 300 and restricts them to trade the\nshares of the company publically.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_Private_Limited_Company_Registration\"><\/span>Advantages of Private Limited Company Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Incorporating a private limited company in India holds numerous benefits for the owners\/ members of the company. Some of those advantages are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The limited risk to personal belongings:&nbsp;<\/h3>\n\n\n\n<p>The shareholders of a private\ncompany have limited liability. Therefore, it means that as a&nbsp;<strong>shareholder<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Shareholder\" target=\"_blank\" rel=\"noreferrer noopener\">[1]<\/a><\/sup>, you will be responsible for paying\nfor the company\u2019s liability only to the level of the contribution made by you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Legal Entity:<\/h3>\n\n\n\n<p>A private limited company has a\nlegal entity separate from the individual owner. This means that the company is\naccountable for the management of its assets and liabilities, debtors and\ncreditors. And you are not responsible for it. Therefore, the creditors cannot\nproceed against you to recover the money.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ease in the arrangement of capital:<\/h3>\n\n\n\n<p>Although registering a private\nlimited company comes with compliance requirements, it is still preferred by\nentrepreneurs. It has opted over any other entity type as it helps them raise\nfunds through equity, expand and limits the liability at the same time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Builds Trust:<\/h3>\n\n\n\n<p>Companies in India are registered\nwith the registrar of companies(ROC) under Companies Act 2013. Therefore,\nanyone can check the details of the company through the Ministry of Corporate\nAffairs (MCA). Also, the details of all the directors are provided at the time\nof the formation of the company. Hence, a private limited company is a business\nstructure that is trusted more.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Continuous Existence:<\/h3>\n\n\n\n<p>A company has \u2018perpetual succession\u2019, which is continuous or exists uninterrupted until it is legally dissolved. Moreover, a company, being a separate legal person, is unaffected by the death or cessation of any of the member and continues to be in existence irrespective of the changes in membership.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Minimum_necessities_to_start_a_Private_Limited_Company\"><\/span>Minimum necessities to start a Private Limited Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to the provisions of the Companies Act, 2013, the minimum requirement to incorporate a private limited company as follows;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Two shareholders:<\/h3>\n\n\n\n<p>A private limited company needs to\nhave at least two shareholders, and on the other hand, the maximum number of\nshareholders can be two hundred.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Two Directors:<\/h3>\n\n\n\n<p>A private limited company has got\nto have at least two directors. However, the maximum number of directors in the\ncompany can be 15. Furthermore, among the directors in the business, at least\none of them must be a resident of India.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Unique Name:<\/h3>\n\n\n\n<p>The name of your business should\nbe unique. Additionally, the suggested name should not match with any companies\nor trademarks in India, which already exist.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Minimum Capital Requirement:<\/h3>\n\n\n\n<p>There is no minimum capital\nrequirement for the company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Registered Office:<\/h3>\n\n\n\n<p>The registered office of a company does not have to be a commercial space. Furthermore, even a rented home can be used as the registered office of the company, as long as you obtain a No Objection Certificate or NOC from the landlord.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required\"><\/span>Documents required<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The following\ndocuments are required to register a private limited company;<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Address proof of directors: electricity bill or bank statement or landline bill or mobile bill (not older than one month)<\/li>\n\n\n\n<li>Passport size photos of directors<\/li>\n\n\n\n<li>Photo ID proof of directors: voter ID card, Passport or Driver License<\/li>\n\n\n\n<li>Rent agreement of your registered office<\/li>\n\n\n\n<li>Specimen signature<\/li>\n\n\n\n<li>Self-declaration of your directorship in other companies<\/li>\n\n\n\n<li>No objection certificate or NOC from the owner of the property of the property<\/li>\n\n\n\n<li>Aadhaar card<\/li>\n\n\n\n<li>PAN card<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Steps_to_Procure_Private_Limited_Company_Registration\"><\/span>Steps to Procure Private Limited Company Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>You are required to follow the given steps to obtain&nbsp;private limited company registration;<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1: Acquire Digital Signature Certificate:<\/h3>\n\n\n\n<p>The first and foremost step is to obtain the DSCs or digital signature certificate of the Personnel involved in the&nbsp;Private Company. The requirement of DSCs arises at the time of filing of e-forms on MCA\u2019s online portal. <strong><a href=\"https:\/\/corpbiz.io\/dsc-registration\" title=\"DSC Registration\">Digital Signature Certificate<\/a><\/strong>, commonly known as DSC, is issued by the Certifying Authority in token form and is valid for one or two years. The officials involved in company formation in India are the Directors and Subscribers of the proposed company.<\/p>\n\n\n\n<p><strong><em>List of\nDocuments required for obtaining Digital Signature Certificate:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Passport size photograph of the applicant;<\/li>\n\n\n\n<li>Self-attested Address proof of the applicant; and<\/li>\n\n\n\n<li>Self-attested PAN card of the applicant.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Step\n2: Name Reservation<\/h3>\n\n\n\n<p>Ahead of making an application to incorporate and&nbsp;register private\nlimited Company in India, the name for the proposed company needs to be\nreserved. The availability of name can be checked in MCA portal.<\/p>\n\n\n\n<p><strong><em>Furthermore,\nthe following general practice is adhered to choose and apply for a company\nname:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>The name should be easy to remember and spell<\/li>\n\n\n\n<li>It should be short &amp; simple<\/li>\n\n\n\n<li>Furthermore, it should be able to provide a distinct identity to the company<\/li>\n\n\n\n<li>Also, the name should not contain any word which does not comply with the public policies or is banned<\/li>\n\n\n\n<li>Lastly, it should not breach any&nbsp;registered Trademark&nbsp;nor should be similar\/ identical to any other company or <strong><a href=\"https:\/\/corpbiz.io\/llp-registration\" title=\"Limited Liability Partnership Registration\">LLP<\/a><\/strong>, which is already registered.<\/li>\n<\/ul>\n\n\n\n<p>After the application is approved, the registrar will reserve the same\nfor a period of 60 days. The promoters need to make an application for the\nincorporation of a company within a period of 60 days. In other cases, failing\nto do so can result in the lapse of the reserved name, and you will have to\napply for a name in a fresh application.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step\n3: Filing Form SPICe+<\/h3>\n\n\n\n<p>After the company\u2019s name has been approved the next step is to file the SPICe+ form Part B with the purpose to get the <a href=\"https:\/\/corpbiz.io\/company-registration\" title=\"Company Registration in India\"><strong>company registration<\/strong><\/a> certificate. Together with it, other information to apply for tax registrations such as PAN and TAN. The forms linked to SPICe+ are AGILE-PRO, SPICe+MoA and SPICe+AoA, URC-1 and INC-9. SPICe+ form Part B and other linked forms can then be uploaded on the MCA portal. &nbsp;For making a payment a Service Request Number is generated towards company incorporation. After the successful payment the forms shall be processed. <\/p>\n\n\n\n<p>All the documents and applications are further verified by the higher authorities and it takes around 7 to 9 working days.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step\n4: Issuance of Certificate of Incorporation<\/strong><\/h3>\n\n\n\n<p>Once all the documents get verified by the\nauthorities, the application for the issuance of Certificate of Incorporation\nshall be made. The registrar after his satisfaction issues the Certificate of\nIncorporation by providing his seal and signature in electronic form.\nFurthermore, the&nbsp;issued&nbsp;<strong><em>Certificate\nof Incorporation (CoI)<\/em><\/strong>&nbsp;includes the date of incorporation as well as\nthe&nbsp;<strong><em>Permanent\nAccount Number (PAN)<\/em><\/strong>&nbsp;of the company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The registration of a private limited Company in India can be processed with ease by consulting a practicing professional like&nbsp;<a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a>. Further, after&nbsp;online private company incorporation, the promoters and directors are required to maintain the active status of the company by complying with the provisions of the company such as filing the annual returns and other requisites as prescribed by the Companies Act, 2013.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/exemptions-for-private-limited-companies-online\/\">A Guide on Exemptions for Private Limited Companies\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Private Limited Company is a type of entity in India which holds many advantages over any other form of existence in our country. Furthermore, as per statistics, about 93% of the entities registered in India are in the form of a Private limited company. In other words, this form of entity is very popular [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":1237,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[154],"tags":[5],"acf":{"service_id":"1"},"authorName":"Tanya Verma","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2019\/10\/IMG-20190703-WA0001__01-150x150.jpg","authorDescription":"Tanya is working as writer &amp; editor from past 2 years with experience in covering startup and technology related topics.","postViews":11782,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1236"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=1236"}],"version-history":[{"count":17,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1236\/revisions"}],"predecessor-version":[{"id":68578,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1236\/revisions\/68578"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/1237"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=1236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=1236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=1236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}