A Private Limited Company (Pvt Ltd) is one of the most popular business structures in India due to its limited liability, legal recognition, and ease of fundraising. It is governed by the Companies Act, 2013, and regulated by the Ministry of Corporate Affairs (MCA). This guide outlines the step-by-step process for registering a Private Limited Company in India.
Key Features of a Private Limited Company
- Limited Liability Protection: Shareholders are only liable for their investment in shares.
- Separate Legal Entity: The company has its own identity, can own assets, and enter contracts.
- Minimum & Maximum Members: Requires at least 2 shareholders and can have up to 200.
- Minimum Directors: Requires at least 2 directors, with at least one Indian resident.
- Minimum Capital Requirement: No mandatory capital requirement; however, commonly ₹1 lakh is maintained.
- Restricted Share Transfer: Shares can be transferred but are subject to Board approval.
- Compliance Requirements: Must maintain financial records, conduct annual meetings, and file returns with the Registrar of Companies (ROC).
Step-by-Step Process for Private Limited Company Registration
Step 1: Obtain a Digital Signature Certificate (DSC)
Since the registration process is entirely online, all directors and shareholders must obtain a DSC to sign digital documents. This can be obtained from certified agencies like e-Mudhra or NSDL.
Step 2: Apply for Director Identification Number (DIN)
Every director must have a Director Identification Number (DIN), which can be obtained through SPICe+ Form (INC-32) on the MCA portal.
Step 3: Name Reservation through SPICe+ (Part A)
- The name should comply with Companies Act, 2013 guidelines.
- Apply via the SPICe+ (Reserve Unique Name – RUN) service on the MCA portal.
- You can propose two names for approval.
Step 4: Filing of Incorporation Documents (SPICe+ Part B)
Submit incorporation documents through SPICe+ (INC-32), including:
- Memorandum of Association (MoA): Defines company objectives.
- Articles of Association (AoA): Outlines the company’s operational rules.
- Proof of Registered Office: Rental Agreement, Utility Bill, or NOC from the owner.
- Declaration by Directors (INC-9).
Step 5: Obtain Certificate of Incorporation (CoI)
Once documents are verified, the Registrar of Companies (ROC) issues a Certificate of Incorporation (CoI) along with:
- Company Identification Number (CIN)
- Permanent Account Number (PAN)
- Tax Deduction and Collection Account Number (TAN)
Step 6: Open a Business Bank Account
- Use the CoI, PAN, and MoA/AoA to open a current bank account for business transactions.
Step 7: Register for GST and Other Compliances
- GST Registration: Required if annual turnover exceeds ₹40 lakh (₹20 lakh for service providers).
- Professional Tax Registration: Mandatory in some states.
- Shops & Establishment Registration: If applicable.
Documents Required for Registration
For Directors & Shareholders:
✔ PAN Card (mandatory for Indian citizens) ✔ Aadhaar Card ✔ Passport-sized Photos ✔ Proof of Address (Bank Statement, Electricity Bill, or Rent Agreement) ✔ Passport (for foreign nationals, notarized & apostilled)
For Registered Office Address:
✔ Rental Agreement or Sale Deed ✔ Utility Bill (not older than 2 months) ✔ NOC from the property owner
Post-Registration Compliance for Private Limited Companies
- Maintain Statutory Registers (shareholders, board meetings, financial statements, etc.)
- Annual ROC Filings (MCA filings of financial statements and returns)
- Tax Filings & GST Returns (quarterly & annual compliance)
- Conduct Annual General Meetings (AGMs)
Why Choose SAPTAX HUB LLP for Company Registration?
Registering a company involves legal documentation, approvals, and compliance management. SAPTAX HUB LLP, a leading CA firm in Delhi, offers expert assistance in: ✅ Company Incorporation & Name Approval ✅ GST & Tax Registration ✅ ROC Filings & Compliance Management ✅ Business Advisory & Financial Consulting
For seamless Private Limited Company Registration in India, contact SAPTAX HUB LLP today!
