Private Limited Company Registration in India – Online Process

1. Minimum two directors and shareholders. One shareholder and director must be an Indian citizen and resident
2. A valid Registered Office Address for the business
3. Documents for shareholders and directors in a clear and legible format
4. Name of the company as per the MCA guidelines
5. Minimum authorized and paid-up capital

There is no minimum Paid-up capital requirement to start a Private Limited Company. However, per the Companies Act, a company needs to keep a minimum Authorised Capital of ₹1 Lac divided into 10,000 equity shares with a face value of ₹ 10 each. Each shareholder must subscribe to at least 1 share to introduce a sufficient amount for running the business. The paid-up capital needs to be deposited in the Current Account of the company as Share Capital.

Authorized capital is the maximum amount of capital that a company can raise by issuing shares at present or in the future. Authorized capital can be increased later as well if the company wishes to raise funds through the issue of fresh equity. Stamp duty for company registration is paid on the authorized capital.

Whereas, the Paid-up Capital refers to the actual amount paid by the shareholders for issuing shares. One can incorporate a company in India by any amount of paid-up capital which can be less or equal to the authorized capital.

Director Identification Number (DIN) is a unique number assigned by the Ministry of Corporate Affairs (MCA). It is issued to Individuals who want to elect as directors in a company or a designated partner in an LLP. There is only single DIN issued to an individual. DIN can be surrendered at any time with the help of filing appropriate forms with MCA. All DIN holders need to comply with DIR 3 KYC filing for DIN Activation process every year.

Digital Signature Certificate (DSC) is a token issued by the Certified Authorities. A DSC is an eSignature used for filing forms with MCA by the directors, promoters, and shareholders. All the directors and the subscribers to MOA (promoters of the company) need DSC for submitting e-forms for incorporation. Director’s DSC is also used while filing GSTR, ITR, and ROC forms.

Yes, you can use your residential address to register a Private Limited Company. Either the latest Utility Bill (Electricity, Telephone, Gas, and Water) or Property Tax Bill of the address can be provided as a Business Address proof. In case the property is owned by another family member, you need to attach an NOC in the form. A registered office is a place where the business receives communication from the MCA and other concerned authorities. This address is displayed on the portal of the Ministry as well.

Also, the residential address used for commercial purposes may attract property tax applicable to commercial properties.

Yes, a Private Company can carry multiple businesses within the same field or of similar nature. It should be mentioned in the company’s MoA and approved by a registrar. Though, companies shall not include Activities that are unrelated. For example, fashion designing and event management are very different business activities, and can’t be categorized as the main business activities for the same company.

Once the company is registered, it should fulfill the following requirements on priority:

1. Open a current bank account within 30 days after receiving the PAN card.
2. Appoint First Statutory Auditor for the company.
3. Deposit paid-up capital as mentioned in the MoA of the company.
4. Issue and allot shares to the subscribers.
5. File INC-20A within 180 days of receipt of COI.

1. Professional Tax Registration is mandatory only for new companies incorporated in Maharashtra, Karnataka, and West Bengal.
2. Shops and Establishment Registration is optional. Also, it is available only for new companies incorporated in Delhi. But, it is recommended to opt for registration as the website of the Labour Department will not provide the service to apply for First Time Registration.
3. It is mandatory for all the new companies incorporated using SPICe+ to select a Bank for opening a current account. At present, many Banks are integrated with AGILE-PRO-S for opening a Bank account. Punjab National Bank, ICICI Bank, SBI, Kotak Mahindra Bank, Bank of Baroda, HDFC Bank, INDUS IND Bank, UBI Bank, and Axis Bank to name a few.

Authorities like Employees State Insurance Corporation (ESIC), Employees Provident Fund Organization (EPFO), GST Department, Bank, NSDL, Income Tax Department, Commercial Tax Department of respective states for PT Registration, and Labour Department get the details of the new company that is incorporated. Additionally, the basic details of the company and directors are published by MCA on its portal under the section “Master Data”.