Process of Private Limited Company Registration in India
A private limited company is a type of business entity in India that is privately owned
and has limited liability. Private limited companies are the most common business entity in India and are popular
among foreign investors because they offer limited liability protection to shareholders. Private limited companies
must have a
minimum of two shareholders and a maximum of fifty shareholders. They must also have a minimum paid-up capital of INR
100,000. The main advantage of a private limited company is that it offers limited liability protection to
shareholders. This means that shareholders are not personally liable for the debts and liabilities of the company.
Another advantage of a private limited company is that it is easy to raise capital by selling shares to investors.
Private limited companies
issue bonds and debentures to raise capital. The main disadvantage of a private limited company is that it is more
expensive to set up and maintain than a sole proprietorship or partnership. Private limited companies must also comply
with more regulations and reporting requirements than these other business entities. If you are planning to set up a
business in India, then a private limited company may be the best option for you. Private limited companies offer
limited liability protection to shareholders and easy to raise capital by selling shares. However, private limited
companies are more expensive to set up and maintain than other business entities.
What is Private Limited Registration?
A private limited company is a business entity that is privately owned and has limited
liability. Private limited companies are registered with the Registrar of Companies (ROC) and are governed by the
Companies Act, 2013. The process of registering a private limited company in India is relatively simple and can do
online. The first step is to obtain a Digital Signature Certificate (DSC) and a Director Identification Number (DIN).
DIN can be applied online on the Ministry of Corporate Affairs (MCA) website. Once you have obtained DIN, you need to
file an incorporation application with the ROC along with the requisite documents. The ROC will then issue a
certificate of incorporation, and your company will be registered. After registration, you need to obtain a PAN
(permanent account number) and a TAN (tax deduction and collection account number) for your company. You will also
need to open a bank account in the name of your company. Once all of these formalities are complete, you can start
doing business as a private limited company in India.
Requirement for Pvt Ltd Company Registration
As per Act 2013, every Indian can start a company and register it as a private limited
company. However, there are some requirements for setting up a private limited company.
To register your company as a PVT LTD. Here are some details that are needed and
- The minimum number of directors for an Indian company is two, but one of those directors must be a resident and
have Indian identification.
- Shareholders for a company must be at least (2), and directors can also be shareholders.
- A registered office in India is required.
Benefits of Pvt Ltd Company Registration
There are several advantages to forming a recognized private limited company. They are:
- Reach and attract more consumers
- Increase Customer trust
- A private limited company enhances your firm’s reputation and dependability.
- It safeguards the owners from losses and risk factors.
- It limits your liability.
- Obtaining a loan or credit for your business is an easy process.
- More appealing, dependable, and abundant financial supplies.
- Begin with a little investment and grow rapidly.
- Increase your company’s development potential.
Documents Required for Private Limited Company Registration
Documents Required for Private Limited Company Registration in India
If you are planning to register a private limited company in
, there are certain documents that you will need to submit. The Registrar of Companies (ROC) needs
certain documents to process your application.
The first document
you will need is a Memorandum of Association (MOA).
This document outlines the company’s objectives, powers, and liabilities. It also needs to be signed by all the
The second document
is the Articles of Association (AOA). This document
outlines the company’s internal rules and regulations. It also needs to be signed by all the company’s
The third document
is the Certificate of Incorporation. The ROC issues
this document, which indicates that your business has successfully registered.
The fourth document
is the PAN (Permanent Account Number) card. The
Income Tax Department issues this document, which is necessary for tax purposes.
The fifth document
is the TAN (Tax Deduction and Collection Account
Number) card. The Income Tax Department also issues this document, which is necessary for tax deduction reasons.
The sixth document
is the Shop and Establishment Certificate. This
document is required if your company going to have a physical office space.
The seventh document
is the VAT (Value Added Tax) registration
certificate. This document is required if your company is going to engage in any kind of business activity.
The eighth document
is the Service Tax registration certificate. This
document is required if your company is going to be providing any services.
The ninth document
is the Electricity Bill. This document is required
if your company is going to be using electricity in its office space.
The tenth document
is the water bill. This document is required if your
company is going to be using water in its office space.
These are the ten documents you will need to submit when you register a private limited company in
. Make sure that you have all of these documents ready before you start the registration process.