Private Limited Company

Overview of Private Limited Company Registration

A Private Limited Company is the most widely used business structure in India for startups and growing businesses. It offers limited liability protection, a separate legal identity, and easy access to equity funding. Registration is governed by the Companies Act, 2013 and processed online by the Ministry of Corporate Affairs (MCA) through the SPICe+ form on the MCA V3 portal.

A Private Limited Company can have between 2 and 200 shareholders and 2 to 15 directors, with at least one director being an Indian resident. As of the MCA's zero-filing-fee scheme (effective since 2020), companies with authorized capital up to ?15 lakh pay no government incorporation fee — only professional and stamp duty charges apply.

Benefit of Private Limited Company Registration

Private Limited Company offers many benefits once it is registered, Registration of a Company is very much necessary for its authenticity and survival. Registering a Private limited company offers more benefits than a Public Limited Company, because-

•The company becomes credible for the partners.

• Registering allows legal protection in case of any fraud or breach of contract.

• Limited Liabilities for the partners.

• The company gains its legal entity once registered.

• Easy to raise funds by selling shares.

• Does not require any funds to start the company.

• The company can borrow capital and accept debentures from the public.

• The company can enjoy owning properties in its name.

Minimum requirement of Private Limited Company Registration

• Minimum of two directors and Maximum of fifteen Directors.

• A minimum of two and a Maximum of two Hundred shareholders are required

• A Digital Signature Certificate (DSC) is essential for all the members to possess.

• A Director Identification number is required by the directors.

• At least one director must be of Indian nationality.

Fees of Private Limited Company Registration

Registration of a Private Limited Company depends on the authorised capital and also varies by state in India, though many states and UTs follow the same fee structure.

Total cost (government + professional fees + DSC + stamp duty) typically ranges from ?6,999 to ?19,999/- depending on your state's stamp duty and the package you choose — see our packages below.

Checklist for Private Limited Company Registration

• Digital signature certificate (DSC)

• Director Identification Number (DIN)

• The Memorandum of Association (MOA) and Articles of Association (AOA) are required.

• Unique Name Reservation.

• SPICe+ Form Filing.

• Company’s PAN and TAN.

• Post SPICe+ is approved by the Registrar of Companies (RoC), and the Certificate of Incorporation is issued.

• Issue of Corporate Identity Number (CIN).

Documents Required For Private Limited Company Registration

Copy of PAN Card of directors
Electricity/ Water bill (Business Place)
Passport-size photo of directors
Copy of Aadhaar Card/ Voter ID card of directors
Copy of Rent agreement (for the rented property)
Copy of Property papers (for the owned property)
Landlord NOC

Steps for Private Limited Company Registration

1. Application of DSC and DIN:

Every one of the partners must apply for a Digital Signature and DIN. A digital signature is an online signature that is utilized for filing and DIN refers to the Director PIN issued through MCA for a Private Limited

Company Registration

2. Name approval:

The partners in a Private Limited Company are required to furnish 3 different options for the corporation name towards The Ministry of Corporate Affairs (MCA) of which one shall be selected. The names provided should also ideally be unique as well as suggestive of corporation business.

3. MOA and AOA submission:

When the name of the Private Limited Company is approved, an applicant is required to draft a Memorandum of Association and Articles of Associate which is necessary for the Private Limited Company Registration.

4. Get an incorporation certificate:

It generally takes 15- 25 days to form a Private limited company to obtain the incorporation certificate. Incorporation certification is a confirmation that the corporation has been formed. It also comprises the CIN number.

5. Apply for PAN, TAN, and Bank account:

An applicant is then required to apply for PAN and TAN. PAN and TAN are generally received in 7 working days. After this, the applicant could submit the Incorporation certificate, MOA, AOA as well as PAN to a bank to open the bank account.

Private limited company registration in Delhi

The Pre-requisites for Private Limited Company Registration in Delhi include;

• 2 Directors

• 2 Shareholder

• Registered Office Address (Residential/ Non-Residential)

Procedure for Private Limited Company Registration in Delhi

• One must apply for a Digital Signature Certificate (DSC) for the Private Limited Company Registration in Delhi.

• One must apply for a Director Identification Number (DIN) for the Private Limited Company Registration in Delhi.

• One must apply for Name Approval with the Registrar of Companies (ROC), for the Private Limited Company Registration in Delhi.

• One must apply for Registration with the new SPICe INC-32 forms for the Private Limited Company Registration in Delhi.

• Then acquire the Registration Certificate.

Documents for Private Limited Company Registration in Delhi include;

• Memorandum of Association (MoA)

• Articles of Association (AOA)

• Declaration and Affidavit through directors and first subscribers

• Office Address Proof

• Utilities Bills’ Copy not beyond 2 months old (Electricity, Gas, Water Bills, etc.)

• Copy of approval in case the proposed name is comprising words/expressions required for authorization by the Central government for the Private Limited Company Registration in Delhi

• If the proposed name for the Private Limited Company India is based upon a registered trademark then it is compulsory to attach a trademark registration certificate or trademark application copy

• NOC from sole proprietors partners or associates or existing corporations is required for Private Limited Company India

• Proof of identity as well as the residential address of subscribers.

• Identity Proof as well as the proof of the residential address of the concerned directors.

Registration Process

Process of Registration

Step 1

Obtain DSC & DIN -- eStartIndia will apply for Digital Signature (DSC) and Director Identification Number (DIN) (about 1 – 2 working days)

Step 2

Name Approval -- eStartIndia will apply for company name approval (about 2 – 3 days)

Step 3

MoA and AoASubmission -- eStartIndia will prepare MoA and AoA(about 5 – 7 days)

Step 4

Certificate of Incorporation, PAN, TAN, Bank Account -- eStartIndia will file the SPICe+ form through the MCA V3 portal to obtain your Certificate of Incorporation (CoI), PAN, TAN, and EPFO/ESIC registration (about 10–12 working days).

Step 5

Congratulations! Your work is done. You can download your Incorporation certificate and Incorporation kit from your dashboard after company incorporation. We also send your Incorporation kit & certificate on your registered email.

Package

Basic

6999 /-

Package Includes:

Free Company Name Search & 1 Name approval
Free Experts Advice
Up to 1 lakh authorized capital
2 DSC for Directors
DIN for 2 Directors
Incorporation fees, Stamp duty*
Incorporation Certificate
MOA & AOA
New Incorporation kit
Customized Incorporation master file
Company PAN card
Company TAN Number
Shares Certificate
Bank Account Opening Document support
Continuous Legal Supports

*Stamp duty extra depends on each state

*Charges extra for NRI/Foreign Directors- minimum 10,000/-

(All Inclusive)

Standard

7499 /-

Package Includes:

Private Limited Company Registration (Basic Package)
GST Registration

(All Inclusive)

Premium

9999 /-

Package Includes:

Private Limited Company Registration (Basic Package)
GST Registration
Trademark Filing(Professional fees)
MSME Registration

~~(12999)~~

(All Inclusive)

Comparison

Compare Your Business Requirements:

	Private Limited Company	One Person Company	Sole proprietorship	Limited Liability Partnership	Partnership Firm
Ideal For	Startup and growing Companies	Single promoters	Small Traders and Manufacturers	Professionals	Small business & Home Business
Requirements	2 Directors/Shareholders	1 Director/Shareholder	1 Proprietor	2 Partners	2 Partners
Initial Investment	Not Required	Not Required	Not Required	Not Required	Not Required
Tax Advantages	Few benefits	Few benefits	Minimal	Most efficient	Minimal
Compliances	High	High	Minimal	Low	Minimal
Limited Liability Protection	Yes	Yes	No	Yes	NO
Time Taken	5-10 days	5-10 days	2-5 days	10-15 days	5-10 days

FAQs

Is it mandatory to deposit Share capital at the time of company Incorporation?

No. Once the registration process is complete and the bank account is opened, share capital can be deposited anytime within two months.

Does a PVT LTD Company require renewal every year?

No. A PVT. LTD. Company continues existence until it is closed down officially by its owners.

Is it possible to change the address of the company post Incorporation?

Yes. The address of the company can be changed anytime post Incorporation.

Is it possible for PVT LTD Companies to trade shares?

No. A PVT. LTD. company by definition is a privately owned company and thus its shares are not open for trading in the public domain.

What is the qualification for an individual to be a shareholder or director of a PVT LTD Company?

There is no mandatory qualification for an individual to be a shareholder or director of a PVT. LTD. Company and any individual can become a shareholder or a director.

What is a DIN?

A DIN or the Director Identification Number is a unique number that identifies the director of a company. When any person is appointed as a company director, the DIN must be mentioned in the relevant documentation.

What is DSC?

A digital signature certificate or a DSC is an electronic signature of a person which is in encrypted form. DSC is used for the signing of e-forms (electronic forms) while filing documents for company registration.