Private Limited Company Registration
Starting from ₹3,000 + GST
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Table Of Content
Private Limited Registration Made Easy
Private company registration in India is popular among micro, small, and medium enterprises, including start-ups with high growth potential. It requires a minimum of 2 and a maximum of 200 members, a minimum paid-up capital of Re. 1, and restricts the transfer of shares.
Private companies do not invite public subscription for their share capital and must include “Private Limited” in their name. Benefits include no public or government interference, no prospectus requirement, separate legal existence, and the ability to contract in its name. Additionally, they qualify for benefits under the Startup India Scheme, including tax exemptions for recognized start-ups.
Benefits of Private Limited Registration
Treated as a separate legal entity, safeguarding members from personal liability and limiting their responsibility to unpaid shares.
Offers tax-saving opportunities; directors’ salaries and preliminary expenses (MOA, AOA drafting, stamp duty) are deductible. Effective tax rate is 25.17%, lower than the 30% rate for LLPs.
Enhances brand credibility, with large firms preferring to deal with private limited companies. Some tenders require registration as a company.
Provides better fundraising options, including issuing secured and unsecured debentures, with banks and financial institutions favoring private limited companies.
Eligibility For Private Limited Registration
Process for Private Limited Registration
Step 1
Submit two proposed names, business objectives, and statutory fees to the MCA. Approved names are valid for 20 days.
Step 2
Apply for DSC for all shareholders and directors, required for document filing.
Step 3
Submit forms such as Spice+ Part, Agile Pro, MOA, AOA, and INC 22 to the MCA, along with supporting documents.
Step 4
Receive the Certificate of Incorporation within 7-10 working days after document verification.
Step 5
Open a bank account in the company’s name, deposit the paid-up capital, and file INC-20A to commence business.
Documents Required for Private Limited Registration
For Directors and Shareholders:
For the Company Address:
FAQs
What is a Private Limited Company in India?
A Private Limited Company is a type of business entity where the liability of members is limited to their shares. It requires a minimum of two shareholders and directors.
What are the advantages of registering a Private Limited Company?
Some advantages include limited liability protection, separate legal entity status, the ability to raise funds through equity shares, and credibility in the business market.
What is the process of registering a Private Limited Company in India?
The process involves obtaining Digital Signature Certificates (DSCs), applying for Director Identification Numbers (DINs), applying for name approval, drafting and filing incorporation documents, and obtaining the Certificate of Incorporation.
What are the documents required for Private Limited Company registration?
Documents include identity and address proofs of directors and shareholders, proof of registered office address, Memorandum of Association (MOA), Articles of Association (AOA), and various incorporation forms.
What is the minimum capital requirement for Private Limited Company registration?
There is no specific minimum capital requirement for Private Limited Company registration in India. The capital structure can be decided by the promoters.
How long does it take to register a Private Limited Company?
The registration process typically takes 10-15 working days, subject to the timely submission of documents and government processing times.
Can a foreign national or NRI be a director or shareholder in a Private Limited Company?
Yes, a foreign national or Non-Resident Indian (NRI) can be a director or shareholder in a Private Limited Company, subject to certain conditions.
What are the compliance requirements after registering a Private Limited Company?
Compliance requirements include filing annual returns, maintaining statutory registers, conducting board meetings, and adhering to tax and regulatory obligations.
What is the tax rate for Private Limited Companies in India?
Private Limited Companies are taxed at a rate of 22% with a surcharge of 10% and a cess of 4%, resulting in an effective tax rate of 25.17%.
Can a Private Limited Company convert to another type of business entity?
Yes, a Private Limited Company can convert to a Public Limited Company, LLP, or any other legal entity by following the prescribed conversion procedures under the Companies Act, 2013.