Private limited Company is a type of business entity which is privately and collectively held by a small group of people. It is registered 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 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.

Let’s take a closer look at the advantages of Private 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.

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:

Fill our simple form and receive a callback from our team of experts

Provide all the required documents for registration of the company and make 50% payment in advance.

Your incorporation certificate including other documents will be delivered to you and you’ll have to make the balance payment.

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

Registered office address

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.

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. Direction Identification Number (DIN)
7. Digital Signature Certificate (DSC)
8. EPF and ESIC registration documents
9. Company Master data

The total cost of registering a private limited company depends upon the no. of directors, members and authorized share capital. The starting fees for company registration is Rs. 4,999 including government + professional fees for two directors and authorized share capital of 1 Lakh rupees.

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