Private Limited Company Incorporation

A Private Limited Company is said to be India’s most famous type of corporate entity. It is registered according to Ministry of Corporate Affairs’s (MCA) legal and regulatory guidelines.



Private limited Company Registration

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.

Table Of Contents

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:

Checklist

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Minimum of 2 directors

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Must have a unique name

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Minimum of 2 shareholders

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No minimum amount of capital

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No commercial place required

Steps to Incorporate a Private Limited Company

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
ICI Private Limited Company

Requisite Documents

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.

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.

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

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