Starting a Private Limited Company in India is a popular choice among entrepreneurs due to its numerous benefits, such as limited liability, separate legal entity status, and ease of raising funds. If you are planning to register a Private Limited Company, this guide will help you understand the process, requirements, and registration fees applicable in different states of India.
What is a Private Limited Company?
A Private Limited Company (PLC) is a type of business entity registered under the Ministry of Corporate Affairs (MCA). It requires at least two shareholders and two directors, one of whom must be an Indian resident. The company structure ensures that the personal assets of shareholders are protected from business liabilities.
Unlike public companies, Pvt Ltd companies do not allow public shareholding, ensuring privacy and control over business operations. It is an ideal business structure for startups and growing enterprises due to its legal credibility and funding opportunities.
Requirements for a Private Limited Company
Before proceeding with registration, ensure that your company meets these requirements:
- Minimum 2 and Maximum 200 Shareholders
- Minimum two and Maximum 15 Directors
- At least one director must be an Indian resident
- Director Identification Number (DIN) for all Directors
- Digital Signature Certificate (DSC)
- No mandatory minimum paid-up capital requirement (As per the Companies Amendment Act, 2015)
Documents Required for Pvt Ltd Company Registration
To register a Pvt Ltd Company, you need the following documents:
- Identity Proof: PAN Card, Aadhar Card, Passport (for foreign nationals)
- Address Proof: Utility Bill, Bank Statement (not older than 2 months)
- Registered Office Proof: Rent Agreement & NOC (if rented) or Ownership Proof
- Digital Passport-size Photos of Directors
These documents must be submitted online via the MCA portal.
Pvt Ltd Company Registration Fees
The registration fees vary by state. Below is the cost of registration in different states:
State NameRegistration Fees (INR)
| State Name | Registration Fees |
|---|---|
| Andhra Pradesh | 7599 |
| Arunachal Pradesh | 5599 |
| Assam | 5599 |
| Bihar | 7599 |
| Chhattisgarh | 7599 |
| Dadra & Nagar Haveli | 5599 |
| Daman & Diu | 7599 |
| Delhi | 5599 |
| Goa | 5599 |
| Gujrat | 12099 |
| Haryana | 5599 |
| Himachal Pradesh | 5599 |
| Jammu & Kashmir | 5599 |
| Jharkhand | 5599 |
| Karnataka | 5599 |
| Kerala | 11099 |
| Ladakh | 5599 |
| Madhya Pradesh | 12099 |
| Maharashtra | 7599 |
| Manipur | 5599 |
| Meghalaya | 5599 |
| Mizoram | 5599 |
| Nagaland | 5599 |
| Odisha | 5599 |
| Puducherry | 5599 |
| Punjab | 21099 |
| Rajasthan | 5599 |
| Sikkim | 5599 |
| Tamil Nadu | 5599 |
| Telangana | 7599 |
| Tripura | 5599 |
| Uttarakhand | 5599 |
| Uttar Pradesh | 5599 |
| West Bengal | 5599 |
Additional Fees for Late Filing
If you delay filing mandatory forms, additional penalties apply:
Delay Period Additional Fee (Multiple of Normal Fee) Higher Additional Fee
| S. No. | Period of Delay | Additional Fees (Multiple of Normal Fee) | Higher Additional Fees (Multiple of Normal Fee) |
|---|---|---|---|
| 1 | Upto 15 days (Section 139 & 157) | 1 | – |
| 2 | More than 15 days and upto 30 days (Section 139 & 157), and upto 30 days in remaining forms | 2 | 3 |
| 3 | More than 30 days and upto 60 days | 4 | 6 |
| 4 | More than 60 days and upto 90 days | 6 | 9 |
| 5 | More than 90 days and upto 180 days | 10 | 15 |
| 6 | Beyond 180 days | 12 | 18 |
Advantages of a Pvt Ltd Company
- Limited Liability Protection – Personal assets of shareholders are safeguarded.
- Separate Legal Entity – The company can own property, sue, and be sued independently.
- Easy Transferability – Shares can be transferred between members.
- Perpetual Succession – The company continues to exist despite changes in ownership.
- Easy Fundraising – Pvt Ltd Companies attract investors more quickly than other entities.
Process of Pvt Ltd Company Registration
- Company Name Approval – Submit name choices to MCA for approval.
- Obtain Digital Signature Certificate (DSC) – Required for electronic filings.
- Apply for Director Identification Number (DIN) – Essential for all directors.
- Prepare Incorporation Documents – Draft MOA & AOA.
- File Incorporation Form (SPICe+) – Submit online application with all documents.
- Certificate of Incorporation (COI) – MCA issues COI within 5-7 working days.
Registered Office Requirements
It’s important to note that every Pvt Ltd Company must have a registered office in India. This address must be displayed on company documents and should be capable of receiving official correspondence. If you need to change your registered office post-incorporation, it’s crucial to follow the prescribed procedure to ensure compliance and avoid any potential issues.
FAQs
Q: What is the minimum investment required for a Pvt Ltd Company?
A: No mandatory minimum investment is required. The Companies Amendment Act 2015 removed the minimum paid-up capital requirement.
Q: How long does it take to register a Private Limited Company in India?
A: Typically, it takes 7-10 working days, provided all documents are in order.
Q: Can a foreigner register a Pvt Ltd Company in India?
A: Yes, foreign nationals can register a Pvt Ltd Company in India, but at least one Indian director is required.
Q: Is GST registration mandatory for a Pvt Ltd Company?
A: GST registration is mandatory if the annual turnover exceeds ₹40 lakh (₹20 lakh for service businesses) or if the business deals in inter-state sales.
Q: What is the validity of the Certificate of Incorporation?
A: The Certificate of Incorporation is valid for a lifetime unless the company is legally closed.
Conclusion
Registering a Private Limited Company in India is a structured process with legal and financial considerations. While the registration fees vary by state, the benefits of incorporating a Pvt Ltd Company make it a preferred choice for startups and businesses looking to scale efficiently.
For assistance with Pvt Ltd Company registration, consult a professional to ensure a hassle-free process!
