Private Limited Company Registration
A private limited company in India is a distinct legal entity
offering limited liability to its shareholders. It necessitates a
minimum of two and allows a maximum of 200 members. This structure
combines the benefits of limited liability with the operational
flexibility and capital aggregation capabilities akin to a
partnership.
Key Considerations for Private Limited Company Registration:
Shares of private limited companies are not publicly traded on
stock exchanges, thereby limiting their transferability.
While there are constraints on the number of shareholders,
private limited companies face fewer regulatory restrictions
compared to other business structures.
It is imperative that the company name includes "Pvt. Ltd.," as
this is integral to the registration process.
At least one director must be an Indian citizen, which is a
mandatory requirement for registration under Indian law.
Opting for private limited company registration provides
significant advantages such as limited liability protection,
operational flexibility, and the ability to attract diverse talent
and capital. This registration type is highly suitable for
entrepreneurs seeking to establish a robust and legally compliant
presence in the local market and beyond.
Documents Required for Private Limited Company Registration
The following documents are required for Directors & Shareholders
and for the Registered Office in the process of company
registration:
For Directors & Shareholders:
If the business premises are owned, a certified copy of the
property deed or papers
A No Objection Certificate (NOC) from the landlord allowing the
use of the premises for business purposes. The format for this
certificate will be provided
For Registered Office:
Ensuring these documents are self-attested and submitted
accurately facilitates the proper verification and compliance
necessary for company registration.
Private Limited Company Registration Process
The registration process for a Private Limited Company involves
several crucial steps:
Obtaining DSC and DIN
Digital Signature Certificate (DSC) and Director Identification
Number (DIN) are prerequisites for directors intending to register
a Private Limited Company. These credentials are essential for
submitting the company registration documents. To obtain them,
scanned documents and requisite details must be provided. Our
representatives will assist in completing the necessary forms and
submitting them online. Typically, DIN and DSC can be obtained for
proposed directors within 1 to 2 days.
Name Approval
The next step while incorporating a Public Company is to decide on
the name of the Company. The name of the Company will be in the
form of “ABC Limited”.
The name can be approved in the Form SPICe+ application. Only one
preferred name along with the significance of keeping that name
can be given in the Form SPICe+ application. If the name gets
rejected, another name can be submitted by applying another Form
SPICe+ application.
Once the name is approved by the MCA we move on to the next step.
Name approval is generally granted within 2 to 3 working days.
Drafting MOA and AOA Electronically
The Memorandum of Association (MOA) and Articles of Association
(AOA) must be electronically drafted using Spice MOA (INC-33) and
Spice AOA (INC-34). This drafting process typically takes 2 to 3
days to complete.
Company Registration
Upon drafting the e-MOA and e-AOA, the incorporation Spice Form
INC-32, along with links to Spice MOA (INC-33) and Spice AOA
(INC-34), is submitted to the MCA. The MCA reviews and approves
the application for incorporation within 5 to 7 days, subject to
their processing timeline. It is critical to note that forms 49A
(PAN) and 49B (TAN) must be mandatorily applied for with SPICe.
Failure to file these forms within 2 days of submitting SPICe
(INC-32) will invalidate the application for incorporation.
Adhering to these structured procedures ensures compliance with
legal requirements and facilitates the efficient establishment of
a Private Limited Company, enabling entrepreneurs to commence
their business endeavors in accordance with regulatory standards.
Choose Lexprosoft for Your Private Limited Company Registration!
Registering as a private limited company in India is a smart
choice for entrepreneurs starting a new business. This structure
is widely preferred by startups and small businesses because of
its numerous benefits. The process is regulated by the Ministry of
Corporate Affairs, ensuring adherence to Indian corporate laws.
Contact our Experts today and take the first step towards your
startup success!
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Private Limited Company Registration FAQ's
What is a Private Limited Company?
A Private Limited Company is a type of business entity that limits the liability of its shareholders to the extent of their shareholding. It cannot publicly trade shares and is restricted to a small group of shareholders.
Who can form a Private Limited Company?
A Private Limited Company can be formed by at least two directors and two shareholders (can be the same individuals). The shareholders can be individuals or corporate entities.
What are the benefits of registering a Private Limited Company?
1. Limited liability protection for shareholders.
2. Separate legal entity, allowing the company to own assets and incur liabilities.
3. Better access to funding and investments.
4. Perpetual succession, unaffected by the death of shareholders.
2. Separate legal entity, allowing the company to own assets and incur liabilities.
3. Better access to funding and investments.
4. Perpetual succession, unaffected by the death of shareholders.
What is the minimum capital required for registering a Private Limited Company?
There is no minimum capital requirement for Private Limited Company registration, though the capital should be sufficient to meet business needs and government fees.
How long does it take to register a Private Limited Company?
Private Limited Company registration typically takes 7-10 business days if all documents are in order and the name is approved promptly.
What is the difference between a Private Limited Company and a Public Limited Company?
Private Limited Company: Limited to 200 members, cannot offer shares to the public.
Public Limited Company: Can raise capital by issuing shares to the public and has no limit on the number of shareholders.
Public Limited Company: Can raise capital by issuing shares to the public and has no limit on the number of shareholders.
What is the Memorandum of Association (MoA) and Articles of Association (AoA)?
MoA: Defines the objectives, powers, and scope of the company.
AoA: Outlines the rules and regulations for the management and governance of the company.
AoA: Outlines the rules and regulations for the management and governance of the company.
What is the role of a Director in a Private Limited Company?
Directors are responsible for managing the company’s day-to-day operations, making strategic decisions, and ensuring compliance with legal and regulatory requirements.
Can foreign nationals or entities be directors in a Private Limited Company?
Yes, foreign nationals or entities can be directors, but at least one director must be a resident of India (having stayed in India for 182 days or more in the preceding year).
Can a Private Limited Company be converted into an LLP or a partnership?
Yes, a Private Limited Company can be converted into a Limited Liability Partnership (LLP) or a partnership by following the prescribed process under Indian law.
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