Private Limited Company Registration Online - Process, Documents Required, Fees
Updated on October 08, 2021 12:25:22 AM
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]
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.
Benefits of Private Limited Company Registration
Let’s take a closer look at the benefits of Private Limited Company registration in India:
Improves Credibility: Private Company improves credibility by being registered as a corporate entity.
Attract Funding: Syndicate both equity and debt funds to have an optimal capital structure.
Foreign Investment: Business may attract foreign direct investment (FDI) under the automatic route.
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.
Easy Exit Plan: It has an Exit plan through sale or dilution of equity of the Company.
Limited Liability: It helps in protecting personal assets of the owners with limited liability protection.
Easy Transferability: Ownership of a business can be easily transferred in a company by transferring shares.
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
Unique business name
At least one director should be the resident of India
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:
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.
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:
Step 2: Provide all the required documents for registration of the company and make 50% payment in advance.
Step 3: Your incorporation certificate including other documents will be delivered to you and you’ll have to make the balance payment.
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 you’ll get after company registration
Post incorporation of private limited company, you’ll receive the following documents:
Certificate of Incorporation
Permanent Account Number (PAN) of the company
Tax Deduction or Collection Account Number (TAN) of the company
Articles of Association (AoA)
Memorandum of Association (MoA)
Direction Identification Number (DIN)
Digital Signature Certificate (DSC)
EPF and ESIC registration documents
Company Master data
Private Limited Company Registration Fees
The fees for registration of private limited company depends upon the no. of directors, members and authorized share capital. The total cost of private limited company registration is ₹4,999 including government & professional fees for two directors and authorized share capital of upto 1 lakh rupees.
Digital Signature Certificate
DIN and Name Approval
MoA, AoA and Incorporation Fee
Total Pvt. Ltd. registration Fees
*Important Note: The total cost of registering a company varies from state to state. Refer to the map for state-wise prices.
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.
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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.
How much does it cost to register a private limited company?
The cost of incorporating a private limited company depends upon the no. of members, share capital and location of registered office. On average, the standard fees for 2 directors and upto 1 lakh share capital would be around ₹4,999 (all included).
What is Pvt Ltd registration?
Private Limited company is a type of business entity privately held by a group of people. It can be registered by filing and submitting required documents on MCA portal.
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.