Private Limited Company Registration in India
Private Limited Company Registration in India – Complete Guide
Registering a Private Limited Company (Pvt Ltd) in India is the most popular choice for startups and businesses due to its legal credibility, limited liability, and scalability.
📌 Key Features of a Private Limited Company
✔ Limited Liability – Shareholders’ liability is limited to their shares.
✔ Separate Legal Entity – Company is separate from its owners.
✔ Perpetual Succession – The company continues even if the owners change.
✔ Easy Fundraising – Eligible for venture capital & bank loans.
✔ Tax Benefits – Lower tax rates than sole proprietorships.
1️⃣ Eligibility Criteria for Pvt Ltd Company Registration
✔ Minimum 2 Directors & Maximum 15 (At least one should be an Indian resident).
✔ Minimum 2 Shareholders & Maximum 200 (Can be individuals or companies).
✔ Registered Office Address (Must be a physical address in India).
✔ Capital Requirement – No minimum paid-up capital requirement.
2️⃣ Step-by-Step Process for Pvt Ltd Company Registration
Step 1: Obtain Digital Signature Certificate (DSC)
🔹 Required for all directors & shareholders.
🔹 Issued by certifying authorities like eMudhra, NSDL.
Step 2: Apply for Director Identification Number (DIN)
🔹 DIN is required for all directors (Obtained via SPICe+ Form).
Step 3: Name Reservation (RUN Application)
🔹 File Reserve Unique Name (RUN) form with 2 name options.
🔹 Approved by the Ministry of Corporate Affairs (MCA).
Step 4: Draft & File Incorporation Documents (SPICe+ Form)
🔹 MoA (Memorandum of Association) – Defines business objectives.
🔹 AoA (Articles of Association) – Defines company’s internal rules.
🔹 SPICe+ Form – File with MCA for registration.
Step 5: PAN & TAN Application
🔹 Auto-generated with incorporation process.
Step 6: Open a Bank Account & GST Registration
🔹 Use company PAN, MoA, AoA, and incorporation certificate.
3️⃣ Documents Required for Pvt Ltd Company Registration
✔ For Directors & Shareholders:
- PAN Card
- Aadhaar Card
- Passport (for NRIs/foreigners)
- Latest Utility Bill (Address Proof)
- Bank Statement (Last 3 months)
✔ For Registered Office:
- Rent Agreement (if rented)
- NOC from Owner
- Electricity Bill
4️⃣ Cost of Private Limited Company Registration
| Expense | Approximate Cost (₹) |
|---|---|
| DSC (2 Directors) | ₹2,000 – ₹3,000 |
| Name Reservation | ₹1,000 |
| MCA Registration Fees | ₹1,500 – ₹7,000 (varies with capital) |
| Professional Fees | ₹5,000 – ₹15,000 |
| PAN & TAN Application | Included in SPICe+ |
💡 Total Cost: ₹8,000 – ₹20,000 (varies based on service provider).
5️⃣ Compliance Requirements for Pvt Ltd Companies
✔ Annual Filing – File AOC-4 & MGT-7 (Financial statements & annual returns).
✔ Income Tax Return (ITR-6) – Mandatory filing by September 30.
✔ Auditor Appointment – Within 30 days of incorporation.
✔ GST Registration – If turnover exceeds ₹40 lakh (₹20 lakh for services).
6️⃣ FAQs on Private Limited Company Registration
❓ Can I register a Pvt Ltd company alone?
🔹 No, at least 2 directors & 2 shareholders are required.
❓ How much time does it take to register?
🔹 7-15 days if all documents are in order.
❓ Can a foreigner register a Pvt Ltd company in India?
🔹 Yes, but at least one Indian director is required.
❓ Is GST registration mandatory?
🔹 No, unless turnover exceeds ₹40 lakh (₹20 lakh for services).
❓ Can I convert a Private Limited Company to an LLP?
🔹 Yes, as per MCA guidelines.
🔥 Conclusion
A Private Limited Company is the best structure for startups & growing businesses in India. It provides legal credibility, tax benefits, and ease of fundraising.
💡 Need help registering your Pvt Ltd company? Let me know! 😊