What is a Private Limited Company?


Private Limited Company in India is the most popular business structure due to stability and growth opportunities served by this corporate structure. It is an organisation registered for defined business objects owned by a close group of members not being more than 200 at a time. The shareholders of the company are said to be the owners, whereas the personnel managing day-to-day operations are called as directors. 

A registered company has its separate legal existence apart from its shareholders and directors. Therefore, the personal assets of the shareholders are secured and treated separately from the assets and liabilities of the company. Owing to the separate existence of company, any change in shareholders or management does not affect the survival of the company.  

The registration and operations of the companies are governed by Indian Companies Act, 2013 and Ministry of Corporate Affairs (MCA) is appointed as the regulatory body. The centralised and transparent registration process makes this corporate structure highly credible from other entities. The Government of India is consistently introducing such provisions that make the registration process easy and simpler for every start-up especially small scale. Therefore, private limited company registration in India is an easy task when properly assisted by professionals.

 

Advantages of Private Limited Company


 Separation of Management and Ownership
 Liability of owner is limited to subscribed capital
 No minimum paid-up capital required

 Hire Managerial Personnel without affecting ownership
 Higher credibility allows ease of raising fund
 Eligible to register under Start-up India Scheme

 

Minimum Requirements for PVT Ltd Company Registration


 Minimum 2 Directors
 At least 1 director to be Indian Resident
 Minimum 2 Shareholders

 DIN & DSC of all directors and shareholders
 Authorised Capital of Rs 1 Lakh
 Registered Office address in India

 

Documents Required For Private Company Registration


  • 1Copy of PAN Card of Directors and Shareholders
  • 2Identity Proof of Directors and Shareholders
  • 3Address Proof of Directors and Shareholders
  • 4Passport Size photograph of Directors and Shareholders
  • 5Electricity Bill or Telephone Bill for business place
  • 6NOC for business place and Rent Agreement, if any

Successful Registration in 3 Easy Steps


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Provide basic details & documents required for registration
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Assigned Relationship Manager
Procurement of Digital Signatures (DSC)
Application for Name Reservation
Documents drafting including MOA and AOA
Certificate of Incorporation

Your company is Incorporated!

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Business Package

All expenses and Government fee
2 Director Identification Numbers (DIN)
2 Digital Signatures (DSC)
1 RUN Name Approval Application
Certificate of Incorporation
PAN Number
TAN Number
MOA and AOA Drafting
Company Identification Number
DSC and DIN for additional directors at extra cost

Business Package

Executive Package

Includes all from Business Package, plus
1 Additional RUN Name Approval application
10 copies of MOA & AOA
Printed Share Certificates
Business Folder & Company Stamp
3 Months Legal Documents Library Subscription
10% Discount on service charges on next order
DSC and DIN for additional directors at extra cost
GST Registration Application

Executive Package

Premium Package

Includes all from Business Package, plus
2 Additional RUN Name Approval applications
25 Copies of MOA & AOA
Printed Share Certificates
Premium Corporate Kit & Company Stamp
6 Months Legal Documents Library Subscription
15% Discount on service charges on next order
100 Letterheads and envelopes
100 Visiting Cards per director
DSC and DIN for additional directors at extra cost
GST Registration Application
GST Return Filing for One Quarter

Premium Package

Package includes the Stamp Duty up to Authorised Capital of Rs. 1 Lakh
Additional Stamp Duty for MP, Kerala and Punjab

Frequently Asked Questions


What is the number of people required for Private Company Registration?

Minimum of 2 directors and 2 shareholders are required in a Private Limited Company, where directors and members can be same also. Further, maximum 15 Directors and 200 members are permissible in a Pvt Company.

What are the requirements to be a Director?

There are no limitations in terms of citizenship or residency to be a director. But the person should be 18 or above 18  years of age i.e. not a minor. Also, the proposed director shall have DIN and not be disqualified to be appointed as director in Limited Company as per the provisions of Indian Companies Act, 2013. The application of DIN Allotment is now merged with the application for formation of a company subject to limit of maximum 3 DIN.

What is Director Identification Number (DIN)?

Director Identification Number is a unique number assigned by the Ministry of Corporate Affairs to Individuals on application made, which allows any individual to be Director in any Company or Designated Partner in LLP.

What is a Digital Signature Certificate and who shall procure it?

Digital Signature Certificate is provided in a token form and issued by Certified Authorities. Any form filed for online company registration in India shall be submitted after affixing the DSC of an Applicant. Also, the directors will require DSC for DIN application and the subscribers to MOA shall possess DSC for submitting e-forms for incorporation.

What amount of capital is required to start a Private Company in India?

It does not require any minimum amount to be infused as capital. However, fee must be paid to the Government for issuing a minimum of shares worth Rs.1 lakh [Authorized Share Capital] during company registration. Also, there is no requirement to show proof of capital invested during the registration process.

What is Authorized Capital and Paid-up Capital?

Authorised capital shows maximum amount of capital a company can raise by way of issue of shares at present or in future whereas the Paid-up Capital refers to the actual amount raised by the company i.e. amount paid by shareholders on issuance of shares. Register a company in India by any amount of paid-up capital, which can be less than authorised capital but not exceeding such.

Is an office required to register a company in India?

An address in India where the registered office of the company will be situated is must requirement for formation of Pvt Company. The premises can be a commercial / industrial / residential where communication from the MCA will be received. 

How we can reserve the name for a Company?

Ministry has introduced a new form "RUN" (Reserve Unique Name) for company name registration on its portal. Under "RUN", the applicant can make application by providing 2 different names with its significance. The names should be unique and in accordance with the provisions. 

What are the statutory compliances to be fulfilled after a Private Company is registered?

The company must hold a Board Meeting at least once in every 3 months. In addition to the Board Meetings, an Annual General Meeting (AGM) must be conducted at least once every year. Fulfilment of Annual Compliance Requirements is must to maintain active status of the company.

Whether a Body Corporate can be Shareholder in a Private Company?

Any person is eligible to be a shareholder while registration or afterwards. A Body Corporate such as company or LLP; and Association of Persons (AOP) such as Society or Trust can also hold shares in a company. Further, a group of persons can jointly hold the share in the company.

Can NRIs / Foreign Nationals be a Director?

Yes, a NRI or Foreign National can be a Director in a this form of company after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident Indian and the criteria shall be followed even after incorporation.

Can NRIs / Foreigners hold shares of a Private Company?

Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares in this company subject to Foreign Direct Investment (FDI) Guidelines. 

What are FDI Guidelines for Foreigners in a Company?

100% Foreign Direct Investment is allowed in India in many of the industries under the Automatic Route. Under the Automatic Route, only a post-investment filing is necessary with the RBI indicating the nature of investment made. There are a few industries that require prior approval from the RBI, in such cases, approval must first be obtained from RBI prior to investment.

What comes as a part of the Legal Documents Library?

Legal documents like Employment Letter, Legal Notice, Non-disclosure Agreement, Terms of Service and Privacy Policy and many more are a part of the Legal Documents Library.


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Ministry of Corporate Affairs (MCA), the governing body of companies and LLP has increasingly participated to improve the position of India in “Ease of Doing Business” ranking. The efforts cover simplification of processes and speedy approvals. Centralised registration system for pvt ltd company registration provides the platform to register a company online through e-portal. As a part of its efforts, the process of company registration in India is rationalised recently, where a single form application is now required to be filed for five distinct steps. Vital step was taken to include the DIN allotment application along with the application of registration and incorporation. For quick company incorporation, the promoters are required to make sure that the name provided is unique and fulfils all criteria of name reservation. Apart from name availability the documents required for registration application must be ready to furnish and complete in all aspects. Here at LegalWiz.in, all you need to do is come with your business idea and documents and the rest will be taken care by our experience professionals for seamless business formation. Once the desirable name of the company reserved, the documents drafting will be processed by the experts, where two documents named MoA and AoA of the company are constitutional documents. These define the boundaries to operations of the company. The objects and capital of the company will be registered with these documents. It is necessary that all the clauses mentioned are in line with business activities of the company and Companies Act. Here, our team of expert chartered accountants, company secretaries and a network of qualified professionals take care of take that the process of online company registration in India is in line with Indian Companies Act, 2013. The experts on subject matter are available on call or via e-mail to solve your queries and provide assistance.

 

Private Limited Company registration does not complete the responsibility of the promoters rather the compliance requirements must be fulfilled as and when levied. Therefore, at the time of Private Limited Company registration only, one shall know the post registration aspects and processes like mandatory audit requirement and more. Due to its stringent compliance policies, the corporate structure of private limited company is more credible compared to other organisations. Therefore start-ups and growing businesses rely on this structure. The growth aspects are higher in this structure as investors can be easily attracted for infusion of funds. The organisation is also eligible for various schemes availability such as start-up recognition that offers number of benefits including tax benefits to business.

 

At LegalWiz.in, we cater the consumers who are looking for better, faster and affordable online pvt ltd company registration services.  We not only assure quality services till business set-up phase, but also provide full spectrum of post Company registration services including Accounting and Bookkeeping, GST and other tax registrations, Annual Compliance services, change of business structure, Intellectual Property registrations and personalised legal document drafting services and more, serving as one stop solution for all your legal needs. We guarantee highest quality standard backed by 100% customer satisfaction.

Private Limited Company Registration