A private limited company is the most popular way for a business entity in India. The majority of companies in India are registered as Pvt. Ltd companies. The cost of registering a private limited business in India depends upon various factors. Therefore the government fee for Pvt. Ltd company registration varies from state to state. The benefit of such a business model is that they provide a safety net to its stakeholders as their liabilities are limited by share.
- How to Register a private limited company
- Pvt. Ltd registration fees (Government fees)
- Private Limited Company Consultants in India
- Advantages of private limited company registration
- Compliance with private limited company registration
How to register a private limited company?
The following requirements are needed to be fulfilled for incorporating a private limited in India. At least two members are required to register for such a company.
Step-1 Obtaining DSC
A digital signature certificate is mandatory. DSC is used to authenticate the documents submitted on the MCA online portal.
The list of following documents is required to acquire a DSC.
- Aadhaar card of the director
- PAN Card
- Passport size photo
- Email address
- Phone number
Step-2 Obtaining DIN
The director of a company must get a director identification number (DIN). It is a mandatory obligation for all businesses to have a unique director identification number. Each director of a company is required to get a DIN/DPIN. However, for company registration, only DIN is needed.
Step-3 Register a name for the company
Getting a unique name for the company is obligatory by law. The title should be unique and not have any similarities with existing registered and established companies.
Step-4 Obtaining MoA and AoA
Both Memorandum of association and Article of the association must be attached along with DSC and DIN while filing for the SPICe+ INC-32 form for private company registration on the ministry of corporate affairs website.
Step-5 Certificate of incorporation
After all the documents are affirmed by the registrar of companies (ROC), the certificate of Incorporation for your private limited company will be issued.
Private Limited Company Registration Fees (Government fees)
The government registration fees for private limited depend on various factors. The primary deciding aspect is the nominal authorized share capital invested by the company.
Government Stamp Duty fees for Pvt. Ltd company registration
|States||Capital share of 1 lakh||Capital share of 2 lakh||Capital share of 5 lakh|
|Delhi||Rs. 360||Rs. 510||Rs. 960|
|Punjab||Rs. 10,025||Rs. 15,025||Rs. 15,025|
|Bihar||Rs. 1,600||Rs. 1,600||Rs. 1,600|
|Tamil Nadu||Rs. 520||Rs. 520||Rs.520|
|NOTE: The private company registration fees can differ from state to state. It does not include the legal professional consultant fee, ranging from Rs. 5,000 – Rs. 30,000|
Additional mandatory costs are required to fill out the SPICe+ form before the Incorporation.
- Fees for a Digital signature certificate (DSC)
- Prices for a Director Identification Number (DIN)
- Additional Fees are needed for registering a unique name for the company.
Private Limited Company Consultants in India
Although filing for a Pvt. Ltd company or any other form of the business appears easy and hassle-free. Yet it has various obligatory adherence and regulations which is to be followed before and after the Incorporation. We here at professional utilities can help you get through the process of Incorporation in simple steps with our team of experts at the Lowest consulting market price.
Advantages of private limited company registration
- Limited liability:-
A private limited is deemed as a separate legal entity from its owners. Therefore liabilities of stakeholders are limited. This means the owners are only responsible for the amount they have invested in the company in case of loss or closure of business.
- Separate legal entity:-
Pvt. Ltd company is registered under the MCA act 2013 and deemed a separate legal entity from its owner. Hence it can sue or be sued or buy assets in its name, grant loans, and more.
- Accessible credit facilities:-
It is easy for a registered company to attract investors from various sources or to get easy loans from banks to grow their business. As it helps increase the credibility of a company in the market.
Compliances of private limited company registration
- Filing an annual return
- Appointment of auditor (ADT-1)
- Filing of annual income tax return
- Disclosure of interest and other entities
- Mandatory Four board meetings each calendar year
How much does it cost to register a private limited company in India?
The registration fees for private limited companies vary from state to state, and it does not include the cost of obtaining DSC and DIN or the professional consultant cost.
Our “Pvt. Ltd company registration” cost starts from Rs. 4,999* depending on the state of Incorporation (Excluding govt fee), including expert advice from the beginning of the Incorporation process till completion.
Can I register a private limited company myself?
Yes, Any interested person can file for Incorporation all by themselves. But filing without expert advice can hinder the process. The procedure of registering a company includes various documents and mandatory compliances. Thus it is recommended for new start-ups to consulting with experts before committing.
How to register a private limited company online?
To incorporate a private limited company online, applicants must first acquire a DSC and a DIN. Then you can create a director account on the MCA portal to fill the SPICe+ -INC 32 form to incorporate One person Company with the registrar of companies (ROC).
How much is share capital required to register a private limited company?
There is no minimum share capital set by authorities to set up a Pvt. Ltd company. However, a minimum authorized capital of Rs. 1 lakh is needed to start a private limited company in India.
How many members are required to start a private limited company?
A Pvt. Ltd can have up to 200 members per the guidelines of the companies act. A minimum of 2 members are required to incorporate a private company limited.
Difference between Pvt.Ltd and LLP companies
|Private Limited Company (Pvt. Ltd)||Limited Liability Partnership (LLP)|
|The maximum number of members should not exceed more than 200.||No limit on the maximum number of members|
|Stakeholders do not necessarily hold management power.||LLP partners hold ownership as well as management authority.|