Private Limited Company

All​ ​you​ ​need​ ​to​ ​know​ ​about​ ​establishing​ ​a​ ​Private​ ​Limited​ ​Company

Taking the road less taken can turn out to be one of the most fulfilling experiences of a lifetime. There is hardly any joy in doing the things everyone can do. But there is a joy mighty sweet when you succeed on a road less taken and become an inspiration for generations to come.

Starting a business can turn out to be one of the most interesting experiences of your life. One of the important decisions made by an entrepreneur or a start-up while starting this journey is the selection of his business entity. The choice of the business entity has long term implications throughout the life-cycle of the business. Hence, it is recommended to discuss your business plan with a professional, and choose an entity that will support the vision of the business.

Cut to the chase; we highly recommend you opt for setting up 
Private Limited Company​. Read on and you’ll understand why.

A Private Limited Company is the most popular as well as the most preferred choice of business entity in India. As it requires a minimum of 2 members, it is most appropriate for small and medium-sized businesses and start-ups. It is a privately held business entity with a limited liability and allows for a 100% foreign direct investment with government approval. It takes only around two weeks to set up a Private Limited Company​. It also allows a significant degree of distinction between the business entity and the management.

Basic​ ​requirements​ ​for​ ​Private​ ​Limited​ ​Company​ ​Registration:

1. A minimum 2 Shareholders are required

2. A minimum 2 Directors are required

3. The Directors and Shareholders generally be the same person

4. One of the Director must definitely be a resident of India

5. The minimum advisable Authorised Share Capital is INR 1 lakh

6. DIN (Director Identification Number) for all directors is needed

7. DSC (Digital Signature Certificate) for 2 promoters and 1 witness is required

Benefits of Private Limited Company

Ease​ ​of​ ​Formation

A Private Limited Company can be incorporated with minimum 2 directors by filing SPICe E Form INC-32 along with link form SPICe MOA (INC-33) and SPICe AOA (INC-34)​. Once the documents are verified, Certificate of Incorporation (COI) is issued to the company by MCA within 2 to 3 days under Fast Track Registration

Separate​ ​Legal​ ​Entity

A company is a separate person having its own rights & obligations. The identity of a Private Limited Company is distinct from that of its members.

Perpetual​ ​Succession

The company will continue to exist in the eyes of law even in the case of death, insolvency, transfer of shares or bankruptcy of any of its members. This leads to perpetual succession of the company. The life of the company continues to exist forever with no effect on the firm’s continuity.

Limited​ ​Liability

The liability of each member of the company is limited. If any liability arise then its member is not personally affected; members are only liable for unpaid shares held by them and not more than that. The personal, individual assets of the shareholders are not at risk.

Greater​ ​Flexibility

As compared to public limited company, a private limited company is required to comply with lesser legal formalities and compliances. It also enjoys special exemptions and privileges under the company law.

Secrecy

Under the Company Law, a Private Limited Company is not mandated to publish its accounts and file several documents. This way, it becomes easier for a Private Limited Company to maintain business secrets.

Investment

A Private Limited Company has the flexibility to easily raise loans and investments from NRIs and foreigners.

Easy​ ​transferability​ ​of​ ​shares

Shares of a company limited by shares can be transferred by a shareholder to any other person. The transfer is much easier as compared to the transfer of interest in a proprietary concern or a partnership.

Owning​ ​Property

A company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company as long as the company is a going concern. The shareholders are not the owners of the company’s property.

Capacity​ ​to​ ​sue​ ​and​ ​be​ ​sued

Just as one person can bring a legal action in his/her own name against another in that person’s name, a company being an independent legal entity can sue and also be sued in its own name.

Dual​ ​Relationship

In a Private Limited Company, it is possible for the company to make a valid and effective contract with any of its members. It is also possible for a person to be in control of the company and at the same time be in its employment. Thus, a person can at the same time be a shareholder, creditor, director and also an employee of the company.

Necessary​ ​Documents​ ​for​ ​Private​ ​Limited​ ​Company​ ​Registration

PAN Card

PAN card of each
Director and Shareholder
(Valid and should Correspond with Id/Address proof)

Identity Proof

Identity Proof of each Director and Shareholder
(Valid not expired)

Any One of
1). Passport Copy
2).Aadhaar Card
3). Voter ID Card
4). Driving License

Address Proof

Residence proof of each Director and Shareholder
(not older than 2 months)

Any One of
1). Electricity Bill
2). Telephone Bill
3). Bank Statement

Registered Office

Registered address proof of the Company Office
(not older than 2 months)

1). Ownership Proof
Any One of
~Electricity Bill
~Water Bill
~House Tax Receipt
~Registered Sale Deed

2). NOC from the Owner

RS. 14,999/-
RS. 9499/- (All Inclusive)

Get Started

* The above mentioned cost is based on Rs. 1lakh capital and 2 directors.

Question? Call us 8447037100

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Check out what's in the kit for you.

  •   COI - Company's Incorporation Certificate
  •   MoA - Memorandum/Article of Association
  •   DIN - DIN Approval Letter for Directors
  •   DSC - Digital Signature Certificate Token
  •   PAN - Company's PAN Card
  •   TAN - Company's TAN/TDS Certificate
  •   1 RUN web form name approval
  •   Bank Account Opening Assistance
  •   Accounting Software Assistance

RS. 14,999/-
RS. 9499/- (All Inclusive)

Get Started

* The above mentioned cost is based on Rs. 1lakh capital and 2 directors.

Question? Call us 8447037100

​Registration​ ​Process

Digital​ ​Signature​ ​Certificate:​ ​(1​ ​Working​ ​Day)

Digital Signature Certificate (DSC) is an electronic online signature issued by licensed certifying authorities. All the directors of the Private Limited Company are required to apply for the DSC which is needed for digitally signing the electronic incorporation documents. DSC can be obtained by using supporting documents or Aadhaar eKYC based authentication (supporting documents are not required in this case).

Director​ ​Identification​ ​Number:​ ​(1​ ​Working​ ​Day)

Director’s PIN or DPIN is a unique 8-digit identification number which is a mandatory requirement for directors of the company to maintain the director's information in a database. DIN is allotted to every director by the MCA (Ministry of Corporate Affairs) with a lifetime validity, and without it one cannot be a director.

Name​ ​Approval:​ ​(3-5​ ​working​ ​days)

Once the MCA obtains the DIN and DSC of the directors, a list of minimum one or maximum six proposed names for the company in preferential order should be submitted to MCA for approval. Ideally, the name should be unique, indicative of your business and end with the words 'Private Limited' in order to avoid rejection. Your company name gets approved subject to availability and naming guidelines.

Incorporation​ ​Documents​ ​(6-8​ ​working​ ​days)

After the company name is approved, a Memorandum of association and Articles of association for your company is drafted by MCA. All the incorporation documents need to be submitted with the prescribed e-form SPICe 32 along with the AOA, MOA and subscription statement. Once all the documents are duly verified and approved by the government, the certificate of incorporation will be emailed to your ID. Simultaneously, MCA applies for PAN and TAN of your company.

Why Choose Us

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We understand the value of money for startups. We offer complete transparency and affordable cost to startups.

Startup's First Choice

We ensure startups to focus on their project and leave all the legalities and documentations to us. From our technology driven platform and on time delivery startups prefer us to do company registration.

 

 

FAQ's on Registration of Private Limited Company

It makes easier for companies to get loans at favourable terms from banks or convincing potential clients while entering into deals as companies are trusted more than other forms of business. Liability of shareholders is limited to the extent of their contributed capital only.

To incorporate a private limited company, a minimum of two shareholders are required. A minimum of two shareholders and a maximum of up to 200 shareholders are allowed in a private limited company. The shareholders could be natural persons or companies, including foreign companies.

Any person intending to become director in a company must apply for director identification number, issued by the Ministry of Corporate Affairs. Requisite documents are required to be submitted along with fee while applying for DIN. It takes 3-4 days for approval of DIN. The approved DIN is valid for life and the same DIN can be used by the director, even if the person has directorship in more than one company. Director Identification Number never expires and a person can have only one Director Identification Number.

A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of a proposed Company.

A private limited company must have a minimum of two Directors and can have up to a maximum of fifteen Directors.

An address in India where the registered office of the Company will be situated is required. The premises can be a commercial / industrial / residential where communication from the MCA will be received.

Yes, A company can change its registered office at any time after following specified procedure.

Identity proof and address proof is mandatory for all the proposed Directors of the Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof. Memorandum of Association and Articles of Association and other documents are prepared by us.

We can incorporate a Private Limited Company in India from 2 to 4 weeks. The time taken for registration will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy registration, please choose a unique name for your Company and ensure you have all the required documents prior to starting the registration process.

A private limited company must hold a Board Meeting at least once in every 3 months. In addition to the Board Meetings, an Annual General Meeting must be conducted by the Private Limited Company, at least once every year.

Yes, a Foreign National or an NRI can be a Director in a Private Limited Company in India after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident India.

Yes, a Foreign National or an NRI Foreign Companies can hold shares of a Private Limited Company subject to Foreign Direct Investment (FDI) Guidelines.

Yes, Foreign Companies can hold shares of a Private Limited Company in India subject to Foreign Direct Investment (FDI) Guidelines.

Yes, foreign parent or holding Companies, including USA parent companies, can incorporate a subsidiary, as a 100% owned Private Limited Company in India subject to Foreign Direct Investment (FDI) Guidelines. ?

Following are the steps: (1) Obtain Digital Signature Certificate DSC for proposed Directors of the Company. (2) Obtain Director Identification Number DIN for proposed Directors of the new Company. (3) Filing the proposed name of company for approval to the Registrar of Companies. (4) File all incorporation forms and documents online, including the Memorandum of Association and the Articles of Association. (5) Obtain the certificate of incorporation.

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