Private Limited Company Incorporation

Private Limited Company is said to be India’s most famous type of corporate entity.
Here’s why: No minimum amount of capital!

Get in touch with us to establish your own Private Limited Company!

Our Pvt. Ltd. incorporation packages start from ₹9,999/- all-inclusive

What is Private Limited Company?

Private Limited Company registration is the most popular legal structure option for businesses in India. A private limited company can have a minimum of two members and a maximum of fifty members. The directors of a private limited company have limited liability to creditors. In a case of default, banks/creditors can only sell company’s assets but not personal assets of directors. If you want to start a company in India then make sure your company is registered as Company Registration should be your first priority. It is very important to register your company as a registered company have multiple advantages from easy to register to easy to dissolve.

An Overview

Private Limited Company is a type of organization wherein the ownership and management are separate. The capital of a company is provided by a group of individuals known as shareholders who entrust the responsibility of managing the company in the hands of individuals known as the Board of Directors. These forms of organizations are closely held, usually by family, friends, and relatives. Private limited companies may issue shares and can have a maximum of 200 shareholders and their shares cannot be traded on public exchanges, but they can get their shares listed if needed by converting to a public limited company. It is governed by the Ministry of Corporate Affairs (MCA) and regulated by the Companies Act, 2013.

Advantages

Registering a company offers many benefits because it makes the business genuine and authentic. The key benefits of a private limited company are:

Separate Legal Existence
Its legal existence is different from the shareholders/members. It can own property, incur debts, borrow money, have a bank account, employee people, enter into contracts, etc.
Perpetual Succession
The organization's existence continues despite the death, bankruptcy, insanity, change in membership or an exit from the business of any owner or member, or any transfer of stock, etc.
Limited Liability to Shareholders
Shareholders are not liable personally for any of the debts of the company, other than the amount already invested in the company.
Easy Transferability of Ownership
The ownership represented by shares, can be easily transferred to any other legal entity or person in India or abroad in part or whole.
Other Benefits
- Best structure for fundraising.
- Foreigners and NRIs can also act as director.
- Enhanced brand Image and improvement of credibility.

Checklist

Minimum of 2 directors

Must have a unique name

Minimum of 2 shareholders

No minimum amount of capital

No commercial place required

Steps to Incorporate a Private Limited Company

Step 1: Apply for DSC (Digital Signature Certificate) of the directors.
Step 2: Application for name reservation.
Step 3: Filing of verified documents along with E-MOA and E-AOA on the MCA portal to register a private limited company in form SPICE + wherein application for various registration as listed below along with application for Incorporation is done.

Sr. No	Particulars	Mandatory/ Non Mandatory
1.	Director Identification Number	Mandatory
2.	PAN	Mandatory
3.	TAN	Mandatory
4.	Professional Tax Registration	Mandatory
5	Opening of Bank Account	Mandatory
6	ESIC	Mandatory
7	GSTIN	Not Mandatory
8	EPFO Registration	Mandatory

Step 4: Obtain Certificate of incorporation.
Step 5: Conduct First Board Meeting within 30 days of Incorporation.
Step 6: The subscription money is required to be deposited in the company’s bank account within 180 days and the statement of such deposit is required to be uploaded at MCA portal post which one can obtain Certificate to commence business.
Note: No Company can begin its operations, without obtaining Certificate to commence business.

Requisite Documents

For Directors and Shareholders Identify the 2 directors and shareholders (or more) and submit their documents as given below:
Identity Proof
- PAN (Indian Nationals) or Passport (Foreign nationals) And
- Passport / Driver’s License / Election ID / Ration Card / Aadhar ID
Proof Of Residence
- Bank Statement* / Electricity Bill / Mobile Bill (Any one) Not older than 2 months
*if the person has resided at the present address for less than one year, then previous residential address must also be submitted
Passport size photographs
Director’s educational qualification certificate
For Registered Office
Registered document of title of premises or notarised copy of lease/rent agreement in the company's name along with a copy of rent paid receipt not older than one month.
NOC from landlord to use the premises by the company as its registered office.
Utility bills like telephone, gas, electricity, etc. showing the address of the premises in the name of the owner, which is not older than two months.

Compliances post Company Formation

All companies registered in India are required to comply with various rules and regulations like conduct of Board Meetings, Annual filings, KYC compliance of Director etc. Failure to comply shall lead to penalties or disqualification of the directors. We will help you in maintaining Statutory compliances for your Company at a very affordable price point.

Statutory Auditor Appointment
The board of directors must appoint a practicing Chartered Accountant as their auditor within 30 days of incorporation.
Meeting of the Board of Directors
Minimum of 4 board meetings in a calendar year (at least once in every quarter). The gap between 2 consecutive meetings should not exceed 120 days. For small companies with turnover of not more than Rs. 2 crores, a minimum of 2 meetings must be held in each financial year.
Commencement of Business
Businesses established after November 2, 2018 must obtain a business start certificate within 180 days from the date of establishment. A declaration needs to be submitted by directors that the subscribers have contributed to the capital mentioned in the MOA.
Income Tax Filing
A company must file an income tax return each financial year on or before 30th September of the successive year

Incorporating a Private Limited Company

At India Company Incorporation, we will help you start your own Private Limited company in less than 10-15 working days, subject to government processing times, and availability of all documents.

Following the steps listed below to start your own Company,
Submit a request by clicking here.
Our Corporate Manager (CM) will get in touch with you to collect your documents along with a simple checklist.
Submit the filled checklist along with your documents for verification. Your documents will be verified by our team of experts here at ICI, and we shall take the process further. The CM shall keep you informed throughout the process.
Once your documents along with the checklist are submitted and verified, we shall proceed with the application of your DSC and DIN. In parallel to the DSC application, the application for name reservation shall be submitted to the MCA. Applications for name approval are processed by the MCA in 24-72 hours. You may suggest up to 3-4 names of your choice.
We will draft the MOA and AOA and file the incorporation documents with MCA in part B of a form called “SPICe Plus (SPICe +)" along with the subscription statement. Usually, MCA approves the forms within 4-5 days once filed and issues the Incorporation Certificate with CIN.
Once the approval is obtained, the company would be incorporated.

FAQs

a. What is the Director Identification Number (DIN) and where is DIN Used?

The central government issues a DIN to anyone who intends to be a director of the company. It is an eight-digit unique identification number which has lifetime validity. DIN is person-specific which means that even if he is a director in 2 or more companies, he/she has to obtain only 1 DIN. If a return, application, or information about the company is required by law, the director who signs the return, application, or information will request a DIN under his signature.

b. What is a Digital Signature Certificate (DSC)?

A digital signature certificate (DSC) contains information about the user’s name, email address, pin code, country, date of issuance of the certificate, and name of the certifying authority. It is used to prove your identity, to access information or services on the Internet, or to sign certain documents digitally.

c. What is MOA and AOA?

The Memorandum of Association (MOA) states the main and ancillary objects of the proposed company. The Articles of Association (AOA) contains the rules and procedures for the routine conduct of the proposed company.

d. What is an Authorized Capital?

Authorized capital is the maximum amount of share capital for which a company can issue shares. Authorized capital can be increased by the company at any time with shareholders’ approval.

e. What is the Paid-up capital?

The Paid-up capital of a company is the amount of money for which shares were issued to the shareholder and for which payment was made by shareholders. Paid-up capital will always be less than the authorized capital as the company can not issue shares above its authorized capital.

f. Do you need to be physically present during the procedure?

No, registering a new company is a complete online process. All documents are stored electronically, so you don’t need to be physically present. Please send a scanned copy of the required documents and forms.

g. What is the cost to run a private limited company?

These can be divided into four categories: The costs of establishing a private limited company, the costs of accounting and auditing, the costs of compliance, and other costs.

h. Is it compulsory to Audit Company’s book?

Yes, an auditor must be appointed within 30 days of setting up a private limited company. Non-compliance fees can be in the hundreds of rupees, so compliance is important for private limited companies.

i. Who can be a member of a private limited company?

Any individual or organization can become a member of a private limited company including NRI/foreigners. Nonetheless, the individual must be 18+ in age and should hold a valid PAN card.

j. Can directors of private limited companies become office/salaried employees?

Yes, directors can be paid for by private limited companies. If these conditions are allowed, you will need to verify your employment contract. In many cases, the employers are quite comfortable with the fact that their employee is a director in another company.

k. Can NRIs/Foreigners become directors in a private limited company?

Yes, NRIs and foreigners can be directors of a private limited liability company. You must apply and receive a DIN from the Ministry of Corporate Affairs (MCA). You can also be the majority shareholder of the company. The only requirement is that at least one director be established in India.

l. Can I register a company at my home address?

Yes, you can register your company at your home address. For this you will need to present a service invoice.

m. Can you convert existing private limited into LLP?

Yes, by filing Form 18 (Application and Statement for conversion of a private company/ unlisted public company into limited liability partnership (LLP). Also, Form 17 needs to be filed along with Form 2 (Incorporation document and subscriber’s statement).

n. Still Confused?

Speak to our experts who shall solve all your doubts. Call us at +91 7738 066 334 or Mail us at info@indiacompanyincorporation.com

What Our Clients Say About Us!

Startups aren’t easy. Definitely not during times of Corona. India Company Incorporation was able to guide us with an immense amount of clarity. The team is experienced, always available and the work was handled with the utmost professionalism.

I'm thoroughly impressed with India Company Incorporation services. They really made my work easier. The team provided excellent support and I highly recommend this company.

It was the best decision to choose India Company Incorporation for my company incorporation. Forming a company was such a seamless process. The team was really supportive, patient and available 24x7. I would definitely recommend this company.

It was a pleasure working with India Company Incorporation and their well-trained executives. They answered our queries while guiding us through the entire process at a really reasonable cost. We were happy to have a hassle-free experience.

India Company Incorporation team has given excellent service to our company. They solve all our doubts and suggest appropriate solutions in the best possible way. Thank you so much for your support. All the best for future endeavors.

We were looking for a low-cost service provider, and India Company Incorporation exceeded our expectations. They took care of our registration and took the time to get to know who we are as a firm. We are quite pleased with the service and would enthusiastically recommend India Company Incorporation to anyone.

I am extremely delighted with the experience and would suggest India Company Incorporation to everybody. They took care of my registration procedure and spent time getting to know my business helping us in every regard. I look forward to working with India Company Incorporation again.