Pvt Ltd Company Registration in India - Online Process, Fees, Documents Required

Updated on December 31, 2022 04:39:28 PM

Private Limited Company is the easiest and most authentic way of company incorporation in India. Most people choose this form of business registration because of its beneficial features like limited liability and separate legal entity for its shareholders and directors. More than 90% of registered companies in India are Private Limited Companies. It is the most popular form of company registration as it provides reputation and credibility to the business in the market. Get to know the process, fees, and requirements of Pvt. Ltd. registration.

Pvt. Ltd. Company - Incorporation Certificate [Sample]

Private Limited Company sample

What is a Private Limited Company?

A private limited company is a type of business entity that a small group of people privately and collectively holds. It is incorporated under the Ministry of Corporate Affairs. This type of business entity offers limited liability for its shareholders, and shares can only be traded privately. It has a minimum of 2 members and a maximum of 200 members. Shareholders are considered as the owners of the company, whereas directors are considered to be the key managerial persons (KMP) of the company, while in an LLP, partners are the owners as well as KMPs of the company.

Incorporating a Private Limited Company is the right choice, as it facilitates taxation benefits, credibility, business expansion, and quicker sanction of business loans. It promotes the easy way for capital formation and pooling of funds through members.

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Benefits of Private Limited Company Registration

Benefits of Private Limited Company Registration

Let’s take a closer look at the benefits of Private Limited Company registration in India:

1. Improves Credibility:

Private Company improves credibility by being registered as a corporate entity.

2. Attract Funding:

Syndicate both equity and debt funds to have an optimal capital structure.

3. Foreign Investment:

Business may attract foreign direct investment (FDI) under the automatic route.

4. Separate legal Entity:

A Private Limited Company is a legal entity in its own right, allowing the business owner to keep their assets separate from the business itself. This means that the business owners aren’t subject to any personal liability.

5. Easy Exit Plan:

It has an Exit plan through sale or dilution of equity of the Company.

6. Limited Liability:

It helps in protecting personal assets of the owners with limited liability protection.

7. Easy Transferability:

Ownership of a business can be easily transferred in a company by transferring shares.
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Minimum requirements of Pvt Ltd Company registration

As per the Companies Act 2013, there are minimum requirements that need to be met for company incorporation online.

Minimum 2 directors

Minimum 2 directors

Unique business name

Unique business name

At least one director should be the resident of India

At least one director should be the resident of India

Registered office address

Registered office address

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Private Limited Company Registration Process

Pvt Ltd registration process Pvt Ltd registration process

Step 1: Application for Digital Signature Certificate (DSC)

Private Limited company incorporation is a complete digital process and therefore requirement of Digital Signature Certificate is a mandatory criteria. Directors as well as subscribers to the memorandum of the company need to apply for a DSC from the certified agencies. Obtaining a DSC is a complete online process and it can be done within 24 hours. This process involves 3 simple verifications that are document verification, video verification and phone verification.

Step 2: Application for the Name Availability

Name application for private limited company can be done through SPICe RUN form which is a part of SPICe+ form. While making name application of the company industrial activity code as well as object clause of the company has to be defined.

Note: It should be ensured that business name does not resemble the name of any other already registered company and also does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950). You can easily check the name availability by using our company name search tool to verify the same.

Step 3: Filing of SPICe Form (INC-32)

Post name approval, details with respect to registration of the company has to be drafted in the SPICe+ form. It is a simplified proforma for incorporating a company electronically. The details in the form are as follows:

  1. Details of the company
  2. Details of members and subscribers
  3. Application for Director Identification Number (DIN)
  4. Application for PAN and TAN
  5. Declaration by directors and subscribers
  6. Declaration & certification by professional

Step 4: Filing of e-MoA (INC-33) and e-AoA (INC-34)

SPICe e-MoA and e-AoA are the linked forms which have to be drafted at the time of application for company registration.

Memorandum of Association (MOA) is defined under section 2(56) of the Companies Act 2013. It is the foundation on which the company is built. It defines the constitution, powers and objects of the company.

The Articles of Association (AOA) is defined under section 2(5) of the Companies Act. It details all the rules and regulations relating to the management of the company.

Step 5: Issuance of PAN, TAN & Certificate of Incorporation

Post approval of the above mentioned documents from the Ministry of Corporate Affairs; PAN, TAN & Certificate of Incorporation will be issued from the concerned department. Now, the company is required to open a current bank account by using these documents. You can contact us for assistance with your current bank account opening.

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Register your Private Limited Company Online with Professional Utilities

The process of registering your company as a Private Limited Company is complicated and involves various compliances. Our experts at Professional Utilities can simplify the whole registration process for you. Register your company online in 3 easy steps:

  • get in touch icon
  • documents required icon
  • get registered icon

Step 1:
Get in touch via call or contact form

Step 2:
Provide necessary documents

Step 3:
Get your incorporation registered in 7-10 working days

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Documents Required for registration of Private Limited Company

In order to register your private limited company in India, you need to provide proper identity and address proof. These documents are required for directors and shareholders of the company which will be submitted to the Ministry of Corporate Affairs (MCA) portal.

Identity and Address Proof of Directors & Shareholders

  • Passport size photographs of the directors
  • Copy of Aadhar Card
  • Copy of Driving License or Voter ID
  • Copy of PAN Card
  • Copy of bank statement or utility bill (not older than two months)
  • Copy of Passport (in case of foreign national or NRI)

Address Proof of Registered Office

  • Copy of electricity or any other utility bill (not older than two months)
  • Rent agreement (if rented)
  • No Objection Certificate (NOC) from the owner of the property

Note: It is not mandatory to own a commercial business premise for incorporation. One can use their home address proof for registration of the company.

Documents Required for registration of Private Limited Company
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Documents you’ll get after company registration

Post incorporation of private limited company, you’ll receive the following documents:

  1. Certificate of Incorporation
  2. Permanent Account Number (PAN) of the company
  3. Tax Deduction or Collection Account Number (TAN) of the company
  4. Articles of Association (AoA)
  5. Memorandum of Association (MoA)
  6. Director Identification Number (DIN)
  7. Digital Signature Certificate (DSC)
  8. EPF and ESIC registration documents
  9. Company Master data

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Private Limited Company Registration Fees

Private Limited Company Registration Fees

The total cost of Private Limited Company registration in India, including government and professional fees, starts from ₹4,999 and takes around 7-10 working days.

Steps Cost (Rs.)
Digital Signature Certificate ₹2,400
Government Fee ₹1,600
Professional Fee ₹999
Total Cost ₹4,999*
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What is the time required for registering a company?

On average, it takes around 7-10 working days to register a private limited company in India subject to document verification by MCA.

Why Professional Utilities?

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Simple & Fast Process

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Frequently Asked Questions (FAQs)

How can I register a private limited company?

You can easily register your private limited company by arranging all the required documents and fulfilling the requirements as per the Companies Act, 2013.

What are the documents required for private limited company registration?

In order to register your private limited company in India, you need to provide identity and address proof of all the members along with address proof of the registered office.
Note: You don’t need a commercial place for registration, you can use your residential home address for incorporation.

Is GST mandatory for private limited companies?

No, GST is not mandatory for private limited companies.

What is the minimum capital requirement for a private limited company?

There is no minimum capital requirement for private limited company registration. One can start a company with a share capital of as low as ₹10.

Which is better, LLP or Pvt Ltd company?

LLP and Pvt Ltd Company both have their own pros and cons. It completely depends upon the requirement of the business.

Can we convert LLP to a private limited company?

Yes. A Limited Liability Partnership can be converted into a private limited company easily. To read more, refer to this page on LLP registration.