Private Limited Company Registration in India

We provide quick and affordable service to register a private limited company through 100% online process. Our services are trusted by thousands of businesses in all major cities of India. Pvt Ltd Company Registration is highly preferred by startups.

Get Started
OVERVIEW

Register a Pvt Ltd Company

Company is a popular option to start a business in India by startups and businesses with higher growth aspirations. Pvt Ltd company is incorporated under the Companies Act of 2013, and governed by the Ministry of Corporate Affairs (MCA). It is a registered corporate structure, that provides business a separate legal identity from its owners. Hence, providing key advantages like the ability to contract in its own name, and safeguard personal assets of the owners from business liabilities.

Private Limited Company vs. LLP
Pvt Ltd Company and LLP both are limited liability structures. However, companies offer certain key advantages, especially for startups. Ownership of the company is defined by share capital, which is easy to transfer compared to ownership transfer in LLP. Also, it clearly differentiates management and ownership. Hence, it is preferred by VCs, angel investors and banks for providing debt or equity funding.

However, one should also consider higher compliance and mandatory audit requirement, making it an expensive structure to maintain.

Registration of Company is Simple with LegalWiz.in
The process of company registration in India is revamped by MCA, effective from 26th January 2018. Now, registration of the company can be completed within 10-15 business days. LegalWiz.in employs qualified company secretaries and chartered accountants, who ensure highest customer satisfaction and timely delivery of service. Entire process is managed online, with regular communication and assistance available throughout. We have clients in all major cities of India including Mumbai, Delhi, Bangalore, Pune, Ahmedabad, Hyderabad and more. And, Our services have equally relevant reach within smaller cities and towns in the country.

What is a Private Limited Company?
BENEFITS

Advantages of Private Limited Company Registration

ONLINE REGISTRATION

Documents required to register a Private Limited Company

Formulation of Company Name

Unique Name

Mainly it builds the company brand and preferably be a coined word

Business Object

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

Constitution Type

Name of the company must end with “Private Limited” as a suffix

Learn More
Online Registration

Register a Company in 3 Easy Steps

*Subject to Government processing time

The Process

Process to Register a Company in India

Compare Related Services

Compare different business structures to choose the right entity type

Private Limited Company One Person Company Limited Liability Partnership Partnership Firm Proprietorship Firm
Act Companies Act, 2013 Companies Act, 2013 Limited Liability Partnership Act, 2008 Indian Partnership Act, 1932 No specified Act
Registration Requirement Mandatory Mandatory Mandatory Optional No
Registration under the Act is mandatory to set up business as a Private Limited Company Registration under the Act is mandatory to set up business as One Person Company Registration under the Act is mandatory to set up business as a Limited Liability Partnership Both registered and unregistered partnerships are legal, but registered entity is preferred There is no registration criteria prescribed. But, registration to establish a legal identity is recommended
Number of members 2 – 200 Only 1 2 – Unlimited 2 – 50 Only 1
Requires minimum 2 and not more than 200 shareholders Only an individual,and an Indian resident can be the shareholder No bar on maximum number of partners, but minimum 2 Designated Partners are required It is formed with minimum 2 partners, but not exceeding 50 The proprietor is the only owner of the firm
Separate Legal Entity Yes Yes Yes No No
Private Company is separate entity and can own assets in its name OPC is separate entity and can own assets in its name LLP is separate entity from partners and can own assets in its name Partnership firm does not have any separate identity from its partners Proprietor and business are the same and not different
Liability Protection Limited Limited Limited Unlimited Unlimited
Liability of members is limited to the extent of unpaid value of shares subscribed Liability of member is limited to the extent of unpaid value of shares subscribed Liability of partners is limited to the capital amount agreed to introduce Partners are jointly and severally liable to pay the debts of the Partnership Firm Proprietor’s liability is to pay-off all the debts and obligation of a firm
Statutory Audit Mandatory Mandatory Dependent Not mandatory Not mandatory
Auditor must be appointed within the 30 days of incorporation Auditor must be appointed within the 30 days of incorporation Applicable when turnover exceeds INR 40 Lakh or contribution exceeds INR 25 Lakh Statutory audit not applicable. Tax audit may be applicable based on turnover Statutory audit not applicable. Tax audit may be applicable based on turnover
Ownership Transferability Restricted No Yes No No
Shares can be transferred with the consent of other Shareholders Shares are not transferable easily Ownership can be changed with consent of other partners Ownership is not transferable easily, clause of partnership deed should be referred Firm is no different from proprietor and so ownership is not transferable
Uninterrupted Existence Yes Yes Yes No No
Change in members or director does not affect the existence of Private Company Change in members or director does not affect the existence of OPC.
The nominee will take place of member
Change in Partners or Designated Partners does not affect the existence of LLP Change in partner leads to dissolution or formation of another partnership firm Death or insolvency of proprietor directly affects the firm
Foreign Participation Allowed Not Allowed Allowed Not Allowed Not Allowed
Foreign national are allowed to invest under the Automatic Route Member, nominee and director must be an Indian resident Foreign nationals are allowed, subject to FDI Guidelines Foreign nationals are not allowed to be a partner Foreign Nationals cannot commence proprietorship business
Tax Rates Moderate Moderate High High Low
Tax rate applicable for small companies is reduced to 22% Tax rate applicable for small companies is reduced to 22% With tax rate of 30% on business profit, tax benefits to partners is high With tax rate of 30% on business profit, tax benefits to partners is high Tax rates of individual applied to Proprietorship Firm
Statutory Compliances High Moderate Moderate Less Less
Apart from Annual filings, it has to comply with various provision laid down, but less compared to public company Apart from Annual filing, compliances are less compared to Private Company Annual filing and few event based filings are necessary Separate ITR of partnership is filed, else there is no filing requirement No compliances and no requirement to file a separate ITR
Get Started Know More Know More Know More Know More
Over 1 Lakh Companies registered Annually in India
Be the part of corporate India
Frequently Asked Questions

Explore Private Limited Company Registration

For Private Company registration in India, following requirements must be fulfilled:
1. Minimum 2 directors shall be appointed, out of which one must be a resident of India.
2. Minimum 2 shareholders are required for this registration. Here, an individual may become shareholder and director at the same time.
3. A place of business in India must be provided as a registered office address.

During the registration, a minimum of INR 1 Lakh should be provided as an authorized capital. A minimum paid-up capital requirement is eliminated as a part of Government’s initiative to simplify the business registration in India. However, each shareholder must subscribe at least 1 share for the registration to introduce the sufficient amount for running the business.

The name of a company should be formulated as mentioned above. The applicants can provide the maximum of 2 names with their preference order under RUN form. The applicant should comply with the provisions of the Act or regulations. The registrar may ask to re-submit the application with a different name if names do not fall under the criteria of uniqueness, relevancy or do not fulfill other requirements.

Any natural person above the age of 18 years can become the director in the company after procuring Director Identification Number (DIN). And since there are no specific criteria provided in terms of citizenship or residency, a foreign national can also become a director. The application of DIN Allotment is now merged with the application for the formation of a company subject to a limit of maximum 3 DIN.

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

Digital Signature Certificate is provided in the form of a token 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.

Authorised capital shows the maximum amount of capital that a company can raise by way of issue of shares at present or in the future. Whereas, the Paid-up Capital refers to the actual amount raised by a company i.e.; amount paid by the shareholders on the issuance of shares. One can register a company in India by any amount of paid-up capital which can be less or equal to the authorized capital but not exceeding the authorized capital.

Yes, a Private Company can carry multiple businesses if it is mentioned in the company’s MoA and approved by a registrar. The company can mention more than one business operating within the same field or of the same nature. Activities which are unrelated, such as fashion designing and event management or construction, those cannot be registered under the same company.

Yes, it is possible to register a Private Company at a commercial or residential place by providing the sufficient proof. A registered office is a place where the business receives communication, if any, from the MCA or any concerned authorities. This address is displayed at the portal of Ministry as well.

Yes, NRIs or foreigners can hold shares subject to FDI guidelines. However, a foreign participation above 50% will place the company under the category of Foreign Company.

No, none of the promoters are required to be present when opted to register a company online. All the forms are filed on the web portal and are digitally signed. Also, the required documents can be sent through e-mail or uploaded on our portal for filing.

Once, the company is registered, it should follow below-mentioned requirements on priority:

  • The opening of the company’s current account within 30 days after receiving the PAN card.
  • Appointment of a Statutory Auditor
  • Depositing paid-up capital as mentioned while registration
  • Issue and allotment of shares

During every financial year, the company must hold one Annual General Meeting (AGM) and at least 4 board meetings (one in each quarter). Further, the accounts and financial statements must be audited by an independent auditor. Subsequently, it shall file form AOC – 4 and MGT – 7 as part of Annual Compliance within given time.

Business Structure Tax Rate Effective Tax rate
Domestic Company: (Base Rate) (Base rate + surcharge + CESS)
Not availing any exemptions or incentives 22% 25.17%
Manufacturing companies incorporated after 01st October,2019 and not availing any incentives or exemptions 15% 17.16%
Availing any exemptions or incentives- turnover up to 400/- crore during FY 2017-18 25% 25%+ surcharge +4% CESS
(*Surcharge varies as per the income tax slab)
In any other case 30% 30%+ surcharge +4% CESS
(*Surcharge varies as per the income tax slab)

Daily transactions of the business are recorded in the Books of Accounts of the Company by the Accountant/s. The Accounts hence recorded are verified by an Independent Auditor to make sure that no statutory compliance are missed and provide an Audit Report for the same.
(Note: LegalWiz.in shall only take the accountability of the Accounting Service provided by them but however shall help in appointment of Independent Auditor for your business.)

More Questions? Seek Help of an Expert

Call us at 1800 313 4151

Email us support@legalwiz.in

HAPPY CUSTOMERS

We take pride! Not in our work, but in your words.

Customer Ratting
Read all testimonials
Private Limited Company Registration
Start your entrepreneurial journey now
Get Started
Get Started
Call now!
Go to Top