Private Limited Company Registration Process in India

Table Of Content

• What is a Private Limited Company?
• What are the Benefits of Private Limited Company Registration in India?
• What are the Requirements to Form a Private Limited Company?
• What are the Required Documents for Pvt Ltd Company?
• What is the Process of Private Limited Company in India?
• What is SPICe+?
• What Documents Do I Need for Filing SPICe+?
• How Much Time Does it Take for Pvt. Ltd Registration?
• How eDrafter can help in Private Limited Company Registration?
• Conclusion
• Frequently Asked Questions

Starting a business in India? Registering a Private Limited Company (Pvt Ltd) is one of the most popular choices among entrepreneurs. It offers credibility, limited liability, and ease of raising funds. In this blog, we will walk you through the private limited company registration process step by step, covering requirements, documents, fees, and timelines.

What is a Private Limited Company?

A Private Limited Company is a business entity privately held by a group of individuals. It is legally recognized under the Companies Act, 2013, and offers limited liability protection to its shareholders. This means that in case of financial losses, personal assets of shareholders remain protected. The ownership of the company is divided into shares, and these shares cannot be publicly traded.

What are the Benefits of Private Limited Company Registration in India?

There are various advantages of Private Limited Company and some of the major benefits are :

1. Limited Liability Protection: Shareholders’ personal assets are protected in case of business losses.
2. Separate Legal Entity: The company is distinct from its owners, allowing it to own assets and enter contracts in its name.
3. Ease of Fundraising: Pvt Ltd companies can raise funds from investors, banks, and venture capitalists.
4. Enhanced Credibility: Registered companies gain more trust among clients, investors, and other stakeholders.
5. Perpetual Succession: The company continues to exist even if shareholders change or leave.

What are the Requirements to Form a Private Limited Company?

To register a Private Limited Company in India, you must meet the following requirements:

• Minimum 2 Directors (at least one must be an Indian resident)
• Minimum 2 Shareholders (directors can also be shareholders)
• Unique Company Name that is not similar to any existing registered entity
• Registered Office Address in India
• Capital Investment (No minimum capital requirement, but the authorized capital is typically INR 1 lakh or more)

You can check out detailed blog on types of company registration to see which company type suits you best.

What are the Required Documents for Pvt Ltd Company?

To successfully register your Pvt Ltd company, you need to submit the following documents:

For Directors & Shareholders:

1. PAN Card
2. Aadhaar Card
3. Passport (for foreign nationals)
4. Voter ID/Driving License
5. Recent Passport-sized Photographs

For the Registered Office:

1. Utility Bill (Electricity/Water/Telephone Bill – not older than 2 months)
2. Rent Agreement (if rented) or Ownership Proof (if owned)
3. NOC (No Objection Certificate) from the landlord

What is the Process of Private Limited Company in India?

The private limited company incorporation process follows these steps:

• Step 1: Apply for Digital Signature Certificate (DSC): All directors must obtain a DSC, as it is required for signing digital documents during the registration process.
• Step 2: Obtain Director Identification Number (DIN): Each director must apply for a DIN through the SPICe+ form on the MCA portal.
• Step 3: Name Approval via RUN (Reserve Unique Name): Submit two preferred names for the company through the RUN (Reserve Unique Name) service. The Ministry of Corporate Affairs (MCA) will approve a name that is unique and compliant with naming guidelines.
• Step 4: Draft Memorandum and Articles of Association: Prepare the Memorandum of Association (MoA) and Articles of Association (AoA), which define the company’s objectives and operational rules.
• Step 5: File SPICe+ Form: Complete the SPICe+ form to apply for incorporation. This form also includes PAN and TAN registration.
• Step 6: Issuance of Certificate of Incorporation: Upon successful verification, the Registrar of Companies (ROC) will issue a Certificate of Incorporation, confirming the company’s legal existence.

What is SPICe+?

SPICe+ (Simplified Proforma for Incorporating Company Electronically) is an integrated web-based form introduced by the Ministry of Corporate Affairs (MCA) for company registration in India. It streamlines the registration process by including multiple services in a single application, such as company incorporation, PAN, TAN, GSTIN, EPFO, ESIC, and bank account opening.

What Documents Do I Need for Filing SPICe+?

To file SPICe+, you need:

• Identity proof and address proof of directors/shareholders
• Proof of registered office
• MoA and AoA
• Declaration by directors (Form INC-9)
• NOC from the landlord (if office is rented)

How Much Time Does it Take for Pvt. Ltd Registration?

The entire Pvt Ltd company registration process usually takes 7-15 working days, depending on the availability of documents and government processing time.

How eDrafter can help in Private Limited Company Registration?

With eDrafter, you will get the experienced expert for your Private Limited Company registration. You just need to provide us all the required documents and we will register your Pvt. Ltd. Company on your behalf. Here are some simple steps to get your company registration done with us. Here are the steps:

1. Visit our website and click on private limited company registration in the services section of the main menu of our website.
2. Doing this will redirect you to our Private Limited Company Registration page, where you  need to fill a simple form to provide us some basic information.
3. Now, we will schedule a meeting with an expert who will understand your requirements and will let you know about the process and required documents along with the cost of company registration.
4. Once you provide us all the required documents and pay the company registration fee, we will start the process of your private limited company registration.

So if you don’t want to visit the authorities again and again by wasting your time and energy, visit us and let us do the work.

Conclusion

Registering a Private Limited Company in India is a structured but straightforward process. It provides numerous benefits, including limited liability, credibility, and ease of raising funds. By following the correct steps and submitting the required documents, you can establish your business efficiently. If you need help, consult a lawyer for a smooth process.

Frequently Asked Questions (FAQs)