Private Limited Company Registration Online

Company registration can be easily done through Businessgistro. A minimum of two people are required to incorporate a private limited company

  • Low income tax
  • Easy to incorporate
  • Attractive to investors
  • Limited liability
  • Perpetual Existence
  • Preferred by banks and Financial Institutions
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Private Limited Company Registration

When it comes to starting a business in India, a private limited company is often the favored option. This structure provides stockholders with modest liability protection while imposing certain ownership limits. In contrast, an LLP's management is overseen by its partners. Private limited company registration establishes a clear boundary between directors and shareholders.

Businessregistro provides a low-cost solution to help you register a company in India quickly and easily. We manage all legal formalities and ensure full adherence to the Ministry of Corporate Affairs (MCA) standards.

What is a private limited company?

In India, a private limited company is a privately held firm with limited liability and is one of the most popular business structures. This popularity stems mostly from its multiple benefits, including limited liability protection, ease of establishment and maintenance, and position as a separate legal organization. A private limited company is legally separate from its owners and requires at least two members and two directors to operate. The following are the key characteristics of a private limited corporation in India:

  • Limited Liability Protection:

    In a private limited corporation, shareholders are only liable for the amount of their shareholding. Their assets are protected even when the company suffers financial losses.

  • Separate Legal Entity:

    A private company possesses its own distinct legal identity. It can own property, engage in contracts, and initiate or defend legal actions under its unique name.

  • Minimum number of shareholders:

    A private business must have at least two shareholders and no more than 200 stockholders.

  • Minimum Number of Directors:

    A private limited business requires at least two directors. At least one of the directors must be an Indian citizen.

  • Minimum Share Capital:

    The firm must have a minimum paid-up capital of Rs. 1 lakh, or a larger amount as indicated.

  • Name of the Firm:

    The private limited company's name must end with "Private Limited.

  • Share Transfer Restrictions:

    The transfer of shares inside a private limited corporation is restricted. Shares can only be transferred with the Board of Directors' permission or in accordance with the Company's Articles of Association.

  • Public Invitation Prohibition:

    Private limited corporations are not permitted to request public subscriptions for their shares or debentures.

  • Compliance Requirements:

    Private limited corporations are required to follow a variety of legal and regulatory requirements, such as keeping correct financial records, holding annual general meetings, and filing yearly filings with the ROC.

In conclusion, the characteristics of a private limited company in India make it a popular choice among entrepreneurs due to its beneficial qualities and relatively simple structure.

Types of private limited companies

  • Company restricted by Shares:

    Shareholder liability is restricted to the nominal share amount specified in the Memorandum of Association.

  • Company restricted by Guarantee:

    Members' liability is restricted to the amount of guarantee established in the Memorandum of Association. This assurance is only invoked during the winding up process.

  • Limitless firms:

    Members of limitless firms are personally liable for the company's debts and commitments. However, they are still treated as a separate legal body, and individual members cannot be sued.

Advantages of a Private Limited Company

A Private Limited Company is one of India's most common company formats. Let us clarify the advantages.

  • Limited Liability:

    Shareholders' liability is limited to the amount of capital they provide, protecting personal assets from the company's financial commitments and liabilities.

  • Distinct Legal Identity:

    A Private Limited Company has an autonomous legal identity apart from its owners. It has the ability to possess assets, enter into contractual agreements, and start or defend legal actions in its own name.

  • Continuous Existence:

    The company's existence continues regardless of changes in shareholders or directors. Its existence is not determined by the lifespan of its associates.

  • Ease of Funding:

    Raising funds by issuing shares to investors, venture capitalists, or angel investors is simpler. This framework encourages external investment.

  • Tax Advantages:

    Private Limited Companies can qualify for a variety of tax breaks and exemptions, making them tax-efficient entities.

  • Credibility and trust:

    Customers, suppliers, and partners are more likely to be confident and trusting when your company name includes "Pvt. Ltd."

Requirements for Registering a Company in India

  • Directors and Members:

    A minimum of two directors and 200 members are required for Private Limited Company Registration in India, as per the Companies Act of 2013.

    Directors must have a Director Identification Number (DIN) issued by the Ministry of Corporate Affairs (MCA).

    At least one director must be an Indian resident, having spent 182 days in India in the previous calendar year.

  • Company Name:

    When selecting a name for a private limited company, two factors must be considered:

    The name should reflect the principal activity of the business.

  • Address of the Registered Office:

    After the company registration process, the company must provide the permanent address of its registered office to the company registrar. Business operations occur in this office, and all relevant company documentation is maintained.

Certificate Of Incorporation

Following satisfactory document verification, the MCA will issue the Certificate of Incorporation (COI), which includes the Company Identification Number (CIN), PAN, and TAN.

Document Checklist

  • For Indian Nationals:

    Self-attested PAN card copy, passport-sized photo, Aadhaar Card, proof of identity, and address proof.

  • For Foreign Nationals:

    Notarized documents, passport-sized photo, passport, and address proof.

  • Registered Office Documents:

    Proof of business address, copy of the rent agreement (if applicable), and owner's no objection certificate.

Post-Registration Compliance

Following incorporation, adhering to post-registration company compliances is essential to streamline company operations and define the roles and responsibilities of directors and shareholders.

Documents Required For Private Limited Company

  • PAN Card

    PAN is mandatory for Indian Directors.

  • Passport (Foreign Nationals Only)

    Passport is mandatory for Foreign Directors or Shareholders.

  • Aadhaar Card

    Aadhaar is mandatory for Indian Directors.

  • Foreign Government - Address Proof

    Any document issued by a Foreign Government having photo and address of the Director or Shareholder.

  • Board Resolution Authorising Investment

    Investing Company Address Proof

  • Passport Size Photo

    Passport size photo of the Directors and Individual Shareholders.

  • Recent Utility Bill

    Business Place

  • Name Significance Letter

    Specimen

Private Limited Company FAQ's

The Ministry of Corporate Affairs (MCA) administers the company registration procedure in accordance with the Companies Act of 2013.

  1. Apply for the Director Identification Number (DIN).
  2. Obtain the Director Identification Number (DIN).
  3. Apply for the Digital Signature Certificate (DSC).
  4. Company Name Approval
  5. Submit the Company Incorporation Application
  6. Obtain a certificate of incorporation.
  • Number of Directors
  • Number of Members
  • Authorized share capital
  • Professional Fees

Company registration is mandatory in India to start any business, so fixing the business structures is crucial. In India, there are seven different types of company registration:

  • Sole Proprietorship Registration
  • Partnerships Firm Registration
  • Limited Liability Partnership (LLP) Company Registration
  • Private Limited Company Registration

A company is required to maintain certain compliances once it is incorporated. An auditor needs to be appointed within 30 days and income tax filing and annual return filing need to be done every year. Apart from these, mandatory compliances like ‘Commencement of Business’ forms, and DIN eKYC also need to be done.

The Board of Directors is required to appoint a practicing Chartered Accountant within 30 days of Incorporating a Private Limited Company.

Private limited companies registered in India are required to file ITR returns in Form ITR 6 each year.

Companies registered in India are required to file the MCA annual return every year, according to AOC 4 and MGT 7.

A minimum of two members are necessary to form a Private Limited Company, which can be expanded to 200 members.

The ownership of a Private Limited Company can be transferred through shares.

Private limited companies are taxed at 30%, plus any applicable surcharges and cesses.

The MCA and Companies Act, 2013 govern the operation of a Private Limited Company.

There are several benefits to registering as a Private Limited Company, including limited liability, access to capital, borrowing capacity, increased capacity, ease of exit, and the potential for multiple options.

The maximum value of equity shares that a corporation can issue is referred to as its authorized capital. Paid up capital, on the other hand, is the total number of shares issued by the corporation to its owners. The authorized capital can be increased at any moment after incorporation in order to issue new shares to shareholders.

Certain liability refers to being legally responsible only for a certain amount of a company's debts. Unlike proprietorships and partnerships, shareholder liability for the company's liabilities is limited.

Once the firm has been incorporated, a current account in its name must be opened for transactions. Your advisor will walk you through the process of selecting the bank with which you wish to create an account and obtaining documentation such as the certificate of incorporation, Memorandum and Articles of Association, board resolution, copy of PAN allotment letter, and utility bill.

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