Private Limited Company Registration

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.

Advantages of Private Limited Company Registration

Easy Fund Raising

Pvt. Ltd. Company registration process is stringent enough to make this structure credible among others which makes fundraising or borrowing from external sources easier. The organization itself provides a number of ways to raise funds in the form of private equity, ESOP, and more.

Separate Legal Existence

Once the Company registration in India is done, a legal entity is born in eyes of law. This separates itself from its owners and managers. The company can operate on its own name simply by opening a bank account to own assets and enter into contract with parties. This also provides right to sue third parties in case of any defaults.

Owners’ Limited Liability

The company’s obligation or debts of does not create a charge over the owner’s personal assets. Their liability stays limited only to the capital subscribed and unpaid by them.

Management and Ownership Separation

The separate ownership and management help both – the company and the management to focus on their potential works. The shareholders assign responsibility to operate and run the company without losing control in the form of voting.

Documents required to register a Private Limited Company

PAN Card

PAN Card of shareholders and Directors.
Foreign nationals must provide a valid passport.

Identity Proof

Aadhar card and Voter ID/ Passport/ Driving License of Shareholders and Directors.

Director’s Address Proof

Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholders and Directors.

Photograph

Latest Passport size photograph of Shareholders and Directors.

Business Address Proof

Latest Electricity Bill/ Telephone Bill of the registered office address

NOC from owner

No Objection Certificate to be obtained from the owner(s) of registered office

Rent Agreement

Rent Agreement of the registered office should be provided if any

Note

In case of NRI or Foreign National, documents of director (s) must be notarized or apostilled

Need assistance? Don’t worry, experts are here to help!
Call us at: 1800 313 4151 or Email us: support@legalwiz.in

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

Register a Company in 3 Easy Steps

1. Answer Quick Questions

Pick a Package that best fits your requirements
Fill in our questionnaire that takes less than 10 minutes
Provide basic details & documents required for registration
Make payment through secured payment gateways

2. Experts available for Help

Assigned Relationship Manager
Procurement of Digital Signatures (DSC)
Application for Company Name Registration
Documents drafting including MOA and AOA
Certificate of Incorporation
Application for PAN and TAN

3. Your Company is Registered

All it takes is 10 – 12 working days*

*Subject to Government processing time

Process to Register a Company in India

Day 1 - 2

Review of documents and information provided
Application for Digital Signature Certificate

Day 3 - 6

Checking Name availability
Drafting of MoA, AoA & other required documents

Day 7 - 9

Name reservation application under SPICe
Filing company registration application
DIN allotment application
Application for PAN and TAN of company

Day 10 - 12

Government processing time

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

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Frequently Asked Questions

What are the minimum requirements to register a Private Limited Company?

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.

What is the minimum Capital Requirement?

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.

How to reserve the name of a company?

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.

Who can become a Director of a Private Limited Company?

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.

What is the Director Identification Number (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.

What is a Digital Signature Certificate? Who shall procure it?

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.

What is Authorized Capital and Paid-up Capital?

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.

Can a Private Company carry multiple businesses?

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.

Can I register the company at the residential place?

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.

Can NRIs / Foreigners hold shares in Private Limited Company?

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.

Does anyone has to be physically present for online company registration in India?

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.

What are the statutory requirements to be fulfilled once Private Company is registered?

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

What are the Annual Compliance requirements to be fulfilled by a Private Company?

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.

What are the applicable tax rates for a domestic company ?

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)

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Private Limited Company Registration in India