Private Limited Company Registration in India – Online Process

More than 6,000 entrepreneurs in India trust LegalWiz.in to register a Pvt Ltd Company and keep their businesses compliant. Start your new company registration with the most affordable pricing, dedicated account management support, and a quick turnaround guarantee. A team of expert CA, CS, and Lawyers help you step-by-step to incorporate your startup company.

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INTRODUCTION

Incorporate as a Pvt. Ltd. Company in India

Private Limited Company registration (PLC registration) is a popular way to start a business in India. It offers benefits like limited liability protection to founders, separate legal existence, better credibility, and ease in raising external funds. Hence, Startups and progressive businesses, with higher risk and growth aspirations, prefer a company structure. It is registered with the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013.

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BENEFITS

Why Should You Register a Private Limited Company?

Limited Liability of Shareholders

By registering as a PLC in India, owners can limit their liabilities to their capital contribution commitment. Their personal assets are protected from any major loss or debt in the business, unlike Partnership and Proprietorship firms.

Separate Legal Existence

The company enjoys a separate legal existence from the owners. It can enter into contracts, own assets, and sue the third parties in its own name. As a distinct entity, it has a perpetual existence even beyond the lifetime of the members.

Clarity in Management and Ownership

While the shareholders are the owners of the business, the management decisions are made by the directors of the company. This helps the business to benefit from professional management without diluting ownership for the promoters and shareholders.

Ease in Raising Funds

Being a highly compliant structure, banks prefer to issue loans to Companies and LLPs. Pvt Ltd Company offers key advantages like the ease in ownership transfer and limited liability protection for owners. Investors like Venture Capitalists, Private Equity Firms, and HNIs choose to invest in private limited companies.

Documents Checklist

Documents Required for Private Limited Company Registration Online

PAN and Aadhaar Card

Both PAN and Aadhaar Card of all Indian Shareholders and Directors

Identity Proof

Either Voter ID, Passport, or Driving License of the Shareholders and Directors.

Proof of Address

Copy of the latest Telephone Bill, Electricity Bill, or Bank Account Statement of the Shareholders and Directors

Photographs

Latest passport size photographs of all the Shareholders and Directors

Business Address Proof

Either of the latest Utility Bill (Electricity, Telephone, Gas, Water) or Property Tax Bill of the registered office address. Rent agreement and NOC from the owner in case of rented property

How to Decide a Company Name

Unique Name

Distinct name that is not an already registered company or trademark stands a better chance of name approval from MCA

Business Activity

The second part of the name should ideally suggest the business activity of the company

Name Suffix

The name of the company shall end with Pvt. Ltd. or Private Limited Company

Online Company Registration in Three Easy Steps!

1. Answer Quick Questions

Pick the most suitable package
Take 5-10 minutes to answer simple questions
Provide documents as per the checklist
Make payment through a secured payment gateway

2. Experts at Your Service

We will assign a Relationship Manager
Relax while experts draft and file your documents
We commit to addressing any queries within 24 business hours

3. You are All Set to Roll

All it takes is 10-12 working days*
Let’s keep your business compliant and protected. Time to get on a free assessment call

*Subject to Government processing time

Incorporation Timeline

Quickest Way to Register a Company

Days 1 - 2

Experts review your documents and information
Apply for Digital Signature Certificate

Days 3 - 6

Name availability check on MCA and IP India Portals
Apply for Company Name Reservation
MoA and AoA drafting

Days 7 - 9

Form filling for Certificate of Incorporation (COI)
DIN Allotment Application
PAN and TAN Application

Day 10 - 12

Awaiting MCA approval

Compare With Other Formation Types

Pick a Business Structure That Works Best For Your Business

	Private Limited Company	One Person Company	Limited Liability Partnership	Partnership Firm	Proprietorship Firm
Applicable Law	Companies Act, 2013	Companies Act, 2013	Limited Liability Partnership Act, 2008	Indian Partnership Act, 1932	No specified Act
Registration	Mandatory	Mandatory	Mandatory	Optional	No
	PLC must be registered with MCA under the Companies Act	Same as Private Limited Company	LLP must be registered with MCA under the LLP Act	Partnerships can be registered or Unregistered, there are obvious benefits to register with the State ROF	No registration required. Registration under MSME or GST act are considered valid for Proprietor Firms
Number of Owners	2 – 200	Only 1	2 – Unlimited	2 – 50	Only 1
	Minimum of 2 to maximum of 200 shareholders excluding present or former employees who are members	Only one shareholder	Minimum 2 Designated Partners are required. No limit on the number of maximum partners	Minimum 2 partners, and maximum 50 partners	The proprietor can be the only owner of the firm
Separate Legal Entity	Yes	Yes	Yes	No	No
	PLC is a separate legal entity, and can enter into contracts or own assets in it’s own name	Same as Private Limited Company	Same as Private Limited Company	Partnership firm does not have any separate identity from its partners	Proprietor and business are the same, and hold same PAN number
Liability Protection	Limited	Limited	Limited	Unlimited	Unlimited
	Limited to the share capital subscribed (may vary if defined as limited by guarantee or unlimited liability in the MOA)	Same as Private Limited Company	Limited to the capital contribution agreed by the partner in the LLP Agreement	Partners are jointly and severally liable to pay the debts of the Partnership Firm	Paying off the liabilities of the firm is the proprietor’s responsibility
Statutory Audit	Mandatory	Mandatory	As Applicable	Not Mandatory	Not Mandatory
	Required to appoint a statutory auditor within 30 days of company incorporation	Same as Private Limited Company	Statutory audit required when turnover exceeds INR 40 Lac or contribution exceeds INR 25 Lac	No statutory audit required. Tax audit applicable on basis of total turnover	Same as Partnership Firm
Ownership Transfer	Yes	Yes (Restricted)	Yes	Yes (Restricted)	No
	Shares are easily transferable, so it makes it a most preferred option for raising capital through external investors	There is only one owner in OPC. 100% shares need to be transferred to change ownership	Ownership can be changed with consent of other partners, by drafting a supplementary agreement	Ownership is not easily transferable. Partnership deed outlines the restriction for transfer of ownership	Ownership of the proprietorship is not transferable
Perpetual Existence	Yes	Yes	Yes	No	No
	Private Company prevails with change in ownership or management	OPC has a perpetual succession, but can only have one owner at any time	Change in Partners or Designated Partners does not affect the existence of an LLP	Change in partner leads to dissolution or formation of another partnership firm	Death or insolvency of proprietor dissolves the business
Foreign Ownership	Allowed	Not Allowed	Allowed	Allowed	Not Allowed
	Foreign nationals can invest as per RBI and FEMA guidelines, usually under the Automatic Route	Member, nominee and director must be an Indian resident	Foreign nationals can invest as per RBI and FEMA guidelines, usually under the Automatic Route	Nnon Resident Indian (NRI) can be a partner in the Partnership Firm, subject to RBI regulations	Foreign Nationals cannot own proprietorship business in India
Taxation Liability	Moderate	Moderate	High	High	Low
	Lower rate of 25% for companies with gross turnover of INR 400 Crore. Additional dividend distribution tax may apply	Same as Private Limited Company	Tax rate of 30% on business profits, tax benefits to partners on profit distribution is high	Same as LLP	Tax rates for individuals apply to Proprietorship Firm, as per the Income Tax slab
Compliance Requirement	High	High	Moderate	Low	Low
	Private company has the highest compliance requirements, both annual and event based	OPC compliance requirements are similar to PLC, except conducting an Annual General Meeting (AGM)	Annual filing and few event based filings are necessary, but lesser compliance requirements as compared to company structure	ITR of partnership needs to be filed annually, no major compliance requirements otherwise	No requirement to file a separate ITR. Very less to no compliance hassle
	Get Started	Know More	Know More	Know More	Know More

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FAQs

Have Questions? Find Answers Here

2022-06-28T11:47:25+00:00

What is the minimum requirement for company registration?

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

2022-06-28T11:47:44+00:00

What is the minimum capital requirement to start a company?

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.

2022-06-28T11:47:51+00:00

What are Authorized Capital and Paid-up 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.

2022-06-28T11:47:56+00:00

What is the Director Identification Number (DIN)?

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.

2022-06-28T11:48:04+00:00

What is a Digital Signature Certificate (DSC)? Who needs to obtain a DSC?

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.

2022-06-28T11:48:10+00:00

Can I use my residential address as Company’s Registered Office Address?

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.

2022-06-28T11:48:17+00:00

Can a Private Company carry multiple businesses?

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.

2022-06-28T11:48:29+00:00

What are the statutory requirements post Company Incorporation?

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

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

2022-06-28T11:48:38+00:00

What are the additional registrations available while filing SPICe+ form for PLC Incorporation?

Professional Tax Registration is mandatory only for new companies incorporated in Maharashtra, Karnataka, and West Bengal.
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.
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.

2022-06-28T11:48:49+00:00

Where does MCA share the incorporation data?

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”.