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How to Start Private Limited Company

Private Limited Company

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Get expert assistance for Indian Private Company registration, which can be formed with 2 or more members, including SPICe(INC-32), AGILE- PRO-INC-35,eMoA- INC-33, eAoA- INC-34 and INC-9 filings on MCA, along with DSC provisions, all completed in one go for your proposed Company

Package Inclusion : -
  • Help you with documentation
  • Drafting & filing of online application form
  • Regular follow-ups with concerned departments
  • End-to-end support

Types of Pvt. Ltd. Company

There are three main types of Private Limited Companies.

Types Of company

Company Limited by shares

In this type, the liability of the shareholders is limited to the amount unpaid on their shares. Shareholders are only responsible for the company’s debts based on the value of their shares.

Company Limited by Guarantee

Shareholders’ liability is limited to the amount they guarantee to contribute to the company’s assets if it winds up. This type of company usually operates on a non-profit basis.

Unlimited Company

In this structure, there is no limit to the shareholders’ liability. They are fully responsible for all company debts, even beyond their shareholding.

Steps to Register
Obtain Digital Signature Certificate (DSC):

All directors need to get a DSC for signing electronic documents during registration.

    1. Apply for Director Identification Number (DIN):

      • Directors must apply for a DIN, which is a unique identification number for each director.

    2. Name Approval:

      • Propose a unique name for the company and apply for name approval through the RUN (Reserve Unique Name) service on the Ministry of Corporate Affairs (MCA) portal.

    3. Prepare Incorporation Documents:

      • Draft the Memorandum of Association (MoA) and Articles of Association (AoA). These define the company’s objectives and internal regulations.

    4. Fill SPICe+ Form (Simplified Proforma for Incorporating a Company Electronically):

      • This form includes the application for company incorporation, PAN, and TAN. File this form online along with the MoA, AoA, and supporting documents.

    5. Apply for PAN and TAN:

      • PAN (Permanent Account Number) and TAN (Tax Deduction Account Number) are mandatory for taxation purposes. This can be done through the SPICe+ form.

    6. Submit All Documents to RoC:

      • Submit all the required forms, including the incorporation forms, along with supporting documents (e.g., identity proof, address proof of directors, and registered office address proof).

    7. Receive Certificate of Incorporation:

      • Once the Registrar of Companies (RoC) verifies and approves the documents, you will receive the Certificate of Incorporation, along with the company’s Corporate Identity Number (CIN).

    8. Commence Business:

      • After receiving the Certificate of Incorporation, the company can officially start its business operations.
Frequently Asked Questions

“Private company” means a company having a minimum paid-up share capital as may be prescribed, and which by its articles —

(i) restricts the right to transfer its shares ;

(ii) except in case of One Person Company, limits the number of its members to two hundred:

Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member:

Provided further that—

(A) persons who are in the employment of the company; and

(B) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and

(iii) prohibits any invitation to the public to subscribe for any securities of the company.

  • Limited Liability: Shareholders’ personal assets are protected; their liability is limited to the value of their shares.
  • Separate Legal Entity: The company has its own legal identity, separate from its owners.
  • Perpetual Succession: The company continues to exist even if the directors or shareholders change.
  • Ease of Raising Capital: Companies can raise capital by issuing shares to shareholders.
  • Directors: Minimum of two directors, with at least one being an Indian resident.
  • Shareholders: Minimum of two shareholders; directors can also be shareholders.
  • Registered Office: A physical registered office address in India.

No, there is no minimum capital requirement. However, the company must declare an authorized capital, which can be any amount as per the company’s needs.

Yes, foreign nationals can be directors and shareholders, subject to Foreign Direct Investment (FDI) norms set by the Reserve Bank of India (RBI). However, at least one director must be an Indian resident

The process involves:

  • Obtaining Digital Signature Certificates (DSC) for directors.
  • Applying for Director Identification Numbers (DIN).
  • Reserving a unique company name.
  • Drafting the Memorandum of Association (MoA) and Articles of Association (AoA).
  • Filing the incorporation application through the SPICe+ form on the Ministry of Corporate Affairs (MCA) portal.
  • Receiving the Certificate of Incorporation upon approval.

For Directors:

    • PAN card (for Indian nationals) or Passport (for foreign nationals).
    • Address proof: Passport, Driver’s License, Election ID, Ration Card, or Aadhaar ID.
    • Recent utility bill (not older than 2 months) as proof of residence.

For the Company:

    • Proof of registered office address.
    • Memorandum of Association (MoA).
    • Articles of Association (AoA).

The registration process typically takes 15-25 days, subject to government processing times and document verification

  • After incorporation, a Private Limited Company must:
  • Obtain a Permanent Account Number (PAN) and Tax Deduction Account Number (TAN).
  • Open a corporate bank account.
  • Appoint an auditor within 30 days.
  • File annual returns and financial statements with the Registrar of Companies (RoC) annually.
  • Holding First Board Meeting with 30 days and disclosure receipts from directors in MBP-1 and DIR-8
  • File Commencement of Business with the Registrar of Companies within 180 days of its incorporation
  • Issue and Stamping of Share Certificates.

Yes, a Private Limited Company can be converted into a Public Limited Company by following the procedure laid down in the Companies Act, 2013, which includes passing a special resolution and obtaining approval from the RoC.