Private Limited Company Registration In India
An upcoming entrepreneur in India, more often than not chooses a private limited company as the category of his venture. Coming with features like limited liability protection and perpetual existence, it has grown to be one of the most favoured choice of businesspersons. The basic requirements for private limited company registration in India are a minimum of two directors and two shareholders with the same person allowed to perform both the duties.
A private limited company has to observe various compliance requirements but this type of business can also use the equity route to raise funds. Registered with Registrar of Companies (RoC) under the Companies Act,2013 a business entity so classified also enjoys better credibility in the eyes of the shareholders, lenders and general public. Existing as a separate legal entity, such an organization can also own assets like property which cannot be claimed by the shareholders.
Business Ventures India has been providing assistance to upcoming businesspersons as well as established organizations in getting online private company registration in India for a number of years. Our professionals are experts at providing valuable advice and all the required help at all stages of the registration process.
Procedure of Registration
Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN) : A digital signature is mandatory for signing the form while the DIN is mandatory for a director of a company.
Check name availability and register it : The application be made through e-Form INC-1 accompanied by the prescribed fees. The applicant is required to provide a maximum of six and a minimum of one name in order of preference. One of the best private company registration services in India, Business Ventures India has specialists who ensure that such a name is chosen that is unique and most suitable for your business as well as available.
Filing for registration : Simplified Proforma for Incorporating Company Electronically or SPICe Form INC 32 is used for this process. It should be accompanied with the prescribed fees and the following documents:
- Memorandum of Association (MoA) : A charter specifying the scope of operations of the company and detailing the objective and operations of the organization.
- Articles of Association : This document contains the details about administrative structure and the system employed for performing operations.
- Declaration and Affidavits of Directors : Signed statements mentioning that all the rules have been complied with. The signature should be of a Supreme Court of India lawyer,an individual named in the AoA as director,manager or secretary of the company, Company Secretary, Chartered Accountant.
- All the documents listed in the Documents Required section must be attached with the form in addition to the above listed ones.
The drafting of all the above listed documents needs great care and diligence and should be entrusted to a professional organization specializing in such work like our online private limited company registration service.
After the completion of the above mentioned steps, the office of the Registrar of Companies will do the required scrutiny of the application and undertake verification exercises and on finding the application to be satisfactory may grant the applicant the incorporation certificate.
Directors and Shareholders
Identity Proof : PAN card for Indian nationals and notarised or apostilled copy of Passport for foreign nationals and NRIs
Address Proof : Passport, Aadhar, Voter ID, Driving License and Bank statement/ Utility Bill (Electricity/ Water/ Telephone/ Piped Gas). Bank statement and utility bill should not be more than two months old.
Photographs of the applicants along with the Digital Signature Certificate (DSC) and Director Identification Number (DIN) are also required. If DSC and DIN are not available, you can always utilize our online private limited company registration services for applying for them.
- Property Sale Deed (in case of self-owned property) or a Rental Agreement (if the premises are rented)
- Property Tax Receipt and Utility Bill (Electricity/ Water/ Telephone/ Piped Gas) not more than two months old
- A No Objection letter from the landlord of the rented property explicitly mentioning the fact that the premises have been rented to be used as the registered office of the company with clearly stating its name.
5 Essential Facts To Know About Private Limited Company Registration
The following information can come handy for individuals thinking about private limited company registration in India
Why is private limited company the preferred choice of startups?
This option suits them as they can raise venture capital funds and offer employee stock options which are essential for scaling a business. Banks and other lenders also prefer startups over sole proprietors.
What is the procedure of registration of such entities?
The first step is to get an e-signature called Digital Signature Certificate (DSC) which is obtained in usually two days followed by the Director Identification Number (DIN) application which is a one day process. This is followed by checking the availability of your chosen company name which need not be the same as your brand name. After this the Memorandum & Articles of Association are prepared and then the application for the Certificate of Incorporation is filed. The whole process can be rendered easily by using the services of an agency like us offering online private limited company registration in India.
Is there a cap on the number of directors or shareholders of a private limited company?
Yes, a company of this nature can have a maximum of 15 directors and 200 shareholders while the minimum requirements are two directors and two shareholders. Besides, the same person can shoulder the responsibilities of both director and shareholder. At least, one director has to be a resident of India.
Can a single-founder entity be registered as a private limited company?
As explained above, a company needs at least two directors and to address this problem one can always bring in a blood relative like parents or any other relation as a director.
Are there any investment requirements for registering a company. ?
A Rs 1 lakh subscription amount was required to pay by the shareholders earlier but now a company can be incorporated with zero capital.
Frequently Asked Questions
WHAT IS DIGITAL SIGNATURE CERTIFICATE AND WHY IS IT REQUIRED FOR COMPANY INCORPORATION?
Digital Signature Certificate (DSC) as the name suggests it is a digital signature of an individual and it is required for filling the e-forms of company incorporation electronically to Ministry of Corporate Affairs.
WHAT ARE THE DOCUMENTS REQUIRED FOR PRIVATE LIMITED COMPANY INCORPORATION?
Following are the documents required for company incorporation for each director/ shareholder
- Self attested PAN card copy.
- Four Photographs.
- Self attested copy of any one of the Identity Proof like Driving License, Passport, Voter ID & Aadhar Card
- Self attested copy of the Address Proof like Bank Pass Book / Bank Statement, Telephone Landline Bill, Mobile Bill & Electricity Bill
- Company Address proof any one of the Electricity Bill, Telephone Bill, Mobile Bill & Gas Bill, and Rent Agreement, (if rented) AND NOC for doing Business & for taking Registration.
WHO CAN BECOME A DIRECTOR OF A PRIVATE LIMITED COMPANY?
The Director required to be above 18 years of age and must be a natural person. He may or may not be citizen or residence of India. We can say that even a foreign nationals can be Directors in Indian Private Limited Company.
DO PROMOTERS HAVE TO BE PRESENT PERSONALLY TO INCORPORATE A COMPANY?
Yes, promoters need to be present to personally meet us at our office or meet at any place for the registration of a Company. All the incorporation documents required to be present in original and scanned copy also required to submit
WHAT IS COMMON SEAL?
The Common Seal is the official signature of the company. Any documents on which Common seal is affixed, is deemed to be signed by the company.
WHAT IS THE LIMIT OF MEMBERS TO FORM A PRIVATE LIMITED COMPANY?
In case of Private Limited Company, minimum no. of members are two and maximum are two hundred.
HOW MUCH MINIMUM CAPITAL REQUIRED TO FORM A PRIVATE LIMITED COMPANY?
In case of Private Limited Company, minimum capital required is Rs.1,00,000/-.
HOW MUCH TIME WILL IT TAKES TO INCORPORATE A PRIVATE LIMITED COMPANY?
To incorporate a company we required approximately 5 to 8 working days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy process of incorporation, please choose a unique name for your Company and ensure you have all the required documents are provided before starting the incorporation process.
CAN NRI/FOREIGNERS HOLD SHARES OF A PRIVATE LIMITED COMPANY?
Yes, subject to Foreign Direct Investment (FDI) Guidelines a NRIs / Foreign Nationals / Foreign Companies can hold shares of a Private Limited Company.
WHAT IS DIN (DIRECTOR IDENTIFICATION NUMBER) AND WHY IT IS REQUIRED?
The Unique Number is required to allot to an Individual which remains valid for whole life of the individual and is required to become director of any company.
HOW CAN WE SELECT A NAME OF COMPANY UNDER REGISTRATION?
Firstly we just need to find a unique name as prefix and promoters need to provide name of the proposed company along with significance of word. Secondly the name needs to include a word about the company business activity. Finally before selecting Names it will be advisable to check on Google, MCA Portal, MCA Guidelines and Trade Mark site the availability of Name.
WHAT IS MEMORANDUM OF ASSOCIATION & ARTICLE OF ASSOCIATION?
MOA & AOA of the company defines all the rules and regulations and the working flow of company. It also defines everything about the company’s objects, capital, identity, goals and working pattern. After the name of the company is select the Memorandum of Association and Articles of Association of the company is required to be drafted, the last page of the MOA and AOA is known as subscriber sheet which need to be filled in by the promoters in their own hand writing including their personal details and shareholding ratio.
WHAT IS CERTIFICATE OF INCORPORATION OF THE COMPANY
Get the certificate of incorporation along with PAN & TAN within 6 to 10 days after uploading the Spice e-form INC-32, Spice MOA(INC-33), Spice AOA(INC-34) along with Form 49 A(PAN) and 49 B(TAN).
WHAT IS THE REGISTRATION PROCESS FOR PRIVATE LIMITED COMPANY?
We are the most sought after partner in India for registering a Private Limited Company using Spice Form INC-32. The whole registration process would take between 7- 10 days. This is subjected to ROC processing time.
Digital Signature Certificate(DSC) AND DIN (Director Identification Number) is required for the proposed Directors of the Private Limited Company. It can be feasibly procured for the proposed Directors within 1 to 2 days.
Select a company name after referring to the MCA Name and Trademark database. We will prepare the documents as per your suggested name and get your signature on all documents required to be signed for submission to the Ministry of Corporate Affairs.
All required documents need to be submitted with Spice E Form INC-32 alongwith link Form Spice MOA (INC-33) and Spice AOA (INC-34). Once the name is accepted and documents get verified, MCA will issue Certificate of incorporation within 2 to 3 days.
WHAT ARE THE STATUTORY COMPLIANCE FOR A PRIVATE LIMITED COMPANY?
In case of Private Limited Company, minimum no. of directors are two and maximum are fifteen.
CAN A COMPANY OWNS PROPERTY IN ITS NAME?
A Company can own and enjoy property in its own name, neither the members are not owners of the company’s property and nor the members have insurable interest in the property of the company.