Private Limited Company Registration

Private limited company is the most common type of legal entity that is preferred by millions of Indian Entrepreneurs and popular startups like Flipkart, PhonePe and Swiggy. A private limited company can be registered online in less than 10 days at a very affordable price. Register your Private Limited company under basic packages that cover DSC, DIN, Certificate of Incorporation, MOA, AOA, PAN card and TAN. Register your new startup now. 

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Basic Package

₹ 6,299/-
  • DSC, DIN
  • Memorandum of Association
  • Articles of Association (AOA)
  • Certificate of Incorporation
  • Company e-PAN & TAN
Get Started
Note: Stamp Duty will be on Actual basis as its vary from state to state
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  • Easy Onlie Process
  • 24*7 Hours Customer Support

Private Limited Company Registration in India

Let’s start with the basics. A Private Limited Company is a popular business structure in India. It’s known for its flexibility and limited liability feature. But what does that mean? Well, it means that the liability of the company’s members is restricted to the amount they have invested in the business. In simple terms, your personal assets are safe even if your company faces financial difficulties.

Eligibility Criteria for Private Limited Company Registration

Now that you’re interested, let’s talk eligibility. To register a Private Limited Company in India:

  1. You need at least two directors.
  2. The number of shareholders must be between two and 200.
  3. At least one director must be a resident of India.
  4. To Register a Private Limited Company you need to have a Registered office address. You need to submit Registered Office Proof & NOC from the owner
Private Limited company registration

Private Limited Company Registration Fees

Basic Package

₹ 6,299/-
  • Two Digital Signature
  • Memorandum of Association
  • Articles of Association (AOA)
  • Certificate of Incorporation
  • Company e-PAN & TAN
Get Started
Note: Stamp Duty will be on Actual basis as its vary from state to state

Standard Package

₹ 9,999/-
  • Basic Package +
  • GST Registration
  • MSME Registration
  • INC 20A (commencement Filing)
  • Bank A/c opening Support
Get Started
Note: Stamp Duty will be on Actual basis as its vary from state to state

Premium Package

₹ 14,999/-
  • Standard Package +
  • First Auditor Appointment
  • ADT-1 filing
  • Share certificate issuance
  • Share certificate franking
Get Started
Note: Stamp Duty will be on Actual basis as its vary from state to state

Checklist & Documents Required for Company Registration

Minimum Requirements

  • 2 to 15 Director
  • 2 to 200 Shareholder
  • One Resident Director
  • 2 to 200 Shareholder

Promoter's Document

  1. Passport Size Colour Photograph
  2. Self attested Pan Card of All Promoters
  3. Self attested Aadhar Card
  4. Identity Proof –  Passport or Voter ID Card or Driving License
  5. Address Proof – Recent Month Bank statement , Electricity Bill or Telephone Bill or Mobile Bill

Registered Address

  1. Proof of Premises (Any One): Telephone Bill / Electricity Bill/ Water Bill/ Mobile Bill/ Gas Bill
  2. No Objection Certificate (NOC) From Owner
  3. Utility bill would not be older then 2 month

Online Company Registration Process

Incorporating a company through Simplified Proforma for Incorporating Company electronically (SPICe -INC-32), with eMoA (INC-33), eAOA (INC-34), is the default option and most companies are required to be incorporated through SPICe only. The following are the steps involved in registering a company in India:

Step 1: RUN Name Approval

To reserve the company name, an application for company name approval is first submitted to the Ministry of Corporate Affairs. 1 or 2 names with business objective might be included in the name approval application. If a name approval is denied, one or two additional names may be presented. All name approval applications are typically approved by the MCA in less than 5 business days.

Step 2: Obtain Digital Signature for Directors

In India, the Ministry of Corporate Affairs does not allow wet signatures. All signatures for filings with the MCA must be completed with a digital signature that is issued by a Certification Authority in India. Hence, digital signatures are mandatorily required for the Directors before incorporation.

To obtain Digital Signature, the Directors will have to submit a copy of their identity proof and complete a video KYC process. If the Director is a foreign national, the passport and other documents submitted must be apostilled by a local embassy.

Step 3: Incorporation Application Filing 

Once the digital signatures are obtained, the incorporation application can be filed in SPICe Form to the MCA with all relevant attachments. Along with the incorporation application, the Memorandum of Association (MOA) and Articles of Association (AOA) of the company are filed.

Step 4: Issuance of  Incorporation Certificate , PAN and TAN 

If the MCA finds the incorporation application to be complete and acceptable, the Incorporation Certificate is granted along with PAN of the company. The MCA normally accepts all incorporation applications in less than 5 working days.

Setupfiling: Startup & Tax Consulting Services

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Benefits of Private Limited Company Registration in India

Limited Liability

Shareholders liabilities are limited to the extent of their unpaid amount of subscribed capital to the company.

Easy Funding

Shares in a Private Limited Company can be easily transferred to others. This flexibility is a plus if you plan to bring in new investors.

Perpetual Succession

Companies can exist infinitely as they are the creation of law. Their closure, like their incorporation, is a legal process.

Easy to Transfer

Shares in a Private Limited Company can be easily transferred to others. This flexibility is a plus if you plan to bring in new investors.

FDI Permitted

A Pvt Ltd Company can receive 100% foreign investment in almost all sectors under the Automatic Route, subject to RBI Reporting.

Low Taxation

In India, companies enjoy low Income tax rates: a mere 15% for new manufacturers and 22% for other businesses.

Private Limited Company Compliances

Once a company is registered in India, various compliances must be maintained from time to time to avoid penalties and prosecution. The following are some of the compliances a company would be required to complete after company registration:

1. Post Incorporation Compliance:

Once Company get registered you need to do certain compliances within stipulated time duration in order to avoid penalty. Here is list of compliances that every newly incorporated company need to do- 

  • Auditor Appointment: All companies registered in India must appoint a practicing and licensed Chartered Accountant registered with the ICAI within 30 days of incorporation.

  • Commencement of Business: Within 180 days after incorporation, the business must open a bank current account and deposit the subscription amount specified in the firm’s Memorandum of Association. As a result, if the company is to be formed with a paid-up capital of Rs. 1 lakh, the shareholders must deposit Rs. 1 lakh in the Company’s bank account and file the bank statement with the MCA in order to get a certificate of commencement of business.

Read More about Post Incorporation Compliances >>

2. Annual Compliance: 

  • MCA Annual Filings: Every Financial year, all companies registered in India must file a copy of their financial statements with the Ministry of Corporate Affairs. If a company is formed between January and March, it can choose to file the first MCA annual return as part of the annual filing for the following financial year. Forms MGT-7 and AOC-4 comprise the MCA yearly return. The Directors and a practicing professional must digitally sign both of these forms.
    • Director DIN KYC: Each year, all individuals who hold a Director Identification Number (DIN) – which is assigned during the incorporation process – must complete DIN KYC to authenticate the phone and email address on file with the Ministry of Corporate Affairs.
    • Income Tax Return Filing: Each Financial year, all businesses must file an income tax return using Form ITR-6. Income tax returns must be filed on time for each fiscal year, regardless of incorporation date. A company’s income tax return must be digitally signed using one of the Directors’ digital signatures.

Read More about Annual Compliance for Private Limited Company >>

Taxation for Private Limited Companies

The income tax for companies ranges from 15% to 30%, depending on the case. There are two categories of companies as mentioned below.

A. Newly Incorporated Company: A company incorporated on or after 1st October 2019, and that does not claim any other concession, deduction, exemption under the income tax act, the tax rate is as under

Particulars

Manufacturing Company

Other Company

Tax Rate

15%

22%

Surcharge

10% on tax

10% on tax

Cess

4% on tax & cess

4% on tax & cess

Effective Rate

17.16%

25.168%

B. For other companies: the income tax rate is 25% in case the turnover is less than 400 Crores and 30% in all cases where the turnover is more than 400 Crores. The Surcharge and education cess at applicable rate is charged in addition to the basic income tax rate.

Setupfiling: Startup & Tax Consulting Services

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Comparison with Other Business Structures

Features

Private Limited Company

OPC

LLP

Partnership

Sole Proprietorship

Applicable Law

Company Act 2013

Company Act 2013

LLP Act 2009

Partnership Act 1932

No Law

Number of members

2 - 200

1

2 - Unlimited

2 - 20

1

Number of Directors /DP

2 - 15

1-15

2 - Unlimited

1-20

1

Formation

Through ROC

Through ROC

Through ROC

Through Agreement

Easy

Tax Benefits

The income tax rate for companies vary from 15 % to 22%

The income tax rate for companies vary from 15 % to 22%

LLP Income Tax Rate is 30% on its profits

Partnership firms are taxed at 30% on its profits

For a small business with low turnover, there is the benefit of individual tax slabs.

Statutory Compliance

High

High

Low

Low

Minimum

Foreign Investment (FDI)

FDI in case of a Private Limited Company is available under the automatic route.

FDI is not allowed in One Person Company

FDI in LLP Is permitted at par with the companies

FDI not Allowed 

FDI not Allowed 

Separate Legal Entity

A Company is a separate legal entity separate from its promoters

An OPC is a separate legal entity separate from its promoters

An LLP is a separate legal entity separate from its promoters

A Partnership is a legal entity but not different from partners

The proprietor and the proprietorship business is the same thing

Limited Liability

Liability Limited - Shareholders of a Company are bound to pay only up to the capital they have subscribed to the company.

Liability Limited - In OPC, unlike a proprietorship, the shareholder cannot be asked to pay beyond his subscribed capital

Liability Limited - The partners of an LLP can be called upon to pay only up to the amount of capital they subscribed to.

Liability Not Limited - There is no protection of limited liability, even the personal properties of partners are at risk for losses of business

Liability Not Limited - The proprietor is the whole sole of the business, and his liability to the debts or losses of proprietorship is unlimited.

Ownership Transferability

The shareholding of a Pvt Ltd Company is easily transferable

OPC Shares can be transferred to new shareholder along with the nominee

In LLP contribution/share of a partner can be transferred with the consent of all other partners.

Not Possible, every admission or removal of a partner amounts to the new firm.

Not Applicable

Perpetual Existence

A Company exists beyond the life of its owners /shareholders. After the death, the shares transmits to legal heirs

OPC Continues to exist even after the death of its only shareholder, as it passes to the nominee.

The LLP also have perpetual existence and exists beyond the life of the designated partner

No perpetual existence, with the death of a partner, the partnership ends.

No perpetual existence, with the death of the proprietor, it ends.


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Frequently Asked Questions

Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company registration is governed by the Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required.

The prerequisites for the incorporation of a private limited company are that: The number of members must be between 2-200. There must be at least two directors and two shareholders.

Yes, the application for registration of the company is digitally filed to the Ministry of Corporate Affairs at MCA Portal, the Pvt ltd company registration fee is also payable online to the ROC. The memorandum and articles of the company are filed in digital format as an attachment to the Spice Form for registration of a private limited company in India. After the registration of the company, Pan card is allotted by the income tax department. Hence we can say yes to 100% online process of company registration.

Not at all. The incorporation of the company is an online process. The documentation and the filing process with the ROC can be done in an online environment. Hence there is no need for a physical visit to our offices

Hiring a personal CA or CS may be costlier for a startup. Considering this difficulty, we offer an alternative to you to get the company registered from us on an online professional service platform.

Yes, a company can carry multiple business activities if it is mentioned in the company’s MoA and approved by the ROC. Please note that more than one business activities can be mentioned in the main object of the MOA provided they are related in nature. Completely unrelated business can’t be done in the same company; for example, construction and healthcare shall not be allowed to be carried in the one and same company.

Yes, for a company, the minimum number of directors prescribed is 2, and the maximum is 15. In case you are the sole owner you should consider incorporating a One Person Company or Proprietorship Firm.

Yes, there is no restriction under the companies act that restrict a person’s ability to become a director in a company if he is a salaried employee somewhere else. However, you should check your appointment documents for any restriction that may have been imposed by your employer.

Yes, the foreign nationals of a non-resident Indian can b=very well become a director in the company. However, out of all the directors of the company, one director must be a resident in India.

No, there is no educational qualification or experience required. The only requirement is that the person should be capable of agreeing.

Company incorporation certificate is provided as a pdf document by the Ministry of Corporate Affairs (MCA). MCA only provides a soft copy of the incorporation certificate.

If you have all the documents in order, it will take no longer than 7 days. However, this is dependent on the workload of the registrar.

Not only the private limited companies receive great financial assistance from banks and financial institutions but also enjoy the advantage of borrowing funds. A private limited company can also issue debentures apart from accepting deposits from the public.

There is no minimum required for starting a private limited company. You can fix any capital as per the requirement of your business.

Yes, so long as the annual compliances are met, the private limited company will continue to exist. If you do not comply with the requirements, it will go dormant, until it is struck off the register altogether.

The authorised capital is mentioned in the last clause of the MOA and sets a limit up to which the company can raise its capital. The paid-up capital, on the other hand, the paid capital of the company. Please refer to our detailed analysis of capital.

Its advantages include a separate legal entity, uninterrupted existence, limited liability, easy & free transferability of shares, owning property, better avenues for borrowing funds.

GST Registration is required if the turnover of the business crosses the threshold limit or when the company does an inter-state supply. Please review your situation and decide for yourself if you need GST Registration or nor. Please note once registration under GST is obtained filing of regular returns is mandatory. Click to Learn more on GST Registration

NO the at the time of registration there is no provision for depositing anything as such. However, after the incorporation of the company, the shareholders need to transfer the subscribed share capital to the company bank account.

No, a private limited company is not allowed to offer shares to the public at large, and there is a complete restriction on public trading as such.

Not at all, the company once registered exists until it is legally closed. The registration certificate of a company is valid throughout and does not require any renewal as such. However, a company has to file annual returns to the ROC and Income Tax Department.

The regular cost of compliance of a company may consist of accounting, GST & TDS Returns, statutory audit and annual return filing to the ROC and the Income Tax Department. The overall cost of compliance would differ from company to company based on the number of transactions and turnover. For a startup, this cost is around twenty-five thousand in a year approximately.

Yes, under section 139 of the companies act, every company must get its books of account audited by an independent CA who is appointed as an auditor of the company. The first auditor is appointed within 30 days of the incorporation of the company.

The winding-up of a company is easy for the defunct or inactive company. You can file an STK-2 form with attested copy of a financial statement by a CA. 

Yes, a company must maintain a registered office all the time. Any change in the registered address must be reported to the ROC within fifteen days in INC-22. 

The registered office of the company should be such that is under key and lock to keep and preserve legal documents. There is no requirement for a commercial place for the registered office of the company. It can be held at the residential address as well.

Yes. There is no restriction in law on keeping the residential address as the registered office of the company so long you can put company nameplate there and get NOC from the owner of the property.

A Private Limited Company is incorporated with a physical address as the registered office of the newly registered Pvt Ltd company. Following are the list of the documents which is acceptable as proof of premises where the registered office of the company is situated. The address premises proof should not be older than two months.

  1. Electricity Bill or
  2. Gas Bill or
  3. Telephone Bill or
  4. Mobile Bill and 
  5. NOC from the owner

Before a company occupies any premises as its registered address, a no-objection certificate must be obtained from the owner of the premises. Similarly, at the time of filing for company registration, we need a NOC from the current owner of the premises along with proof of ownership as explained above.