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A Private Limited company, mostly known as 'PVT LTD' is one of the most popular and highly chosen ways to start a business in India. MCA (Ministry of Corporate Affairs), Company Act 2013 and the Companies Incorporation Rules, 2014 supervises the process of Private Limited Company Registration in India. Such a company grants limited liability to its shareholders with certain restrictions placed on the ownership. In an LLP, partners own and manage the business. Although directors can be different from the shareholders in private limited company registration.
At least two shareholders and two directors are required to register a private limited company in India. A living person can be both a director as well as a shareholder. While a corporate legal entity can only become a shareholder. Apart from that, foreign nationals, foreign corporate entities or NRI are permitted to be Directors and/or Shareholders of a Company as stated by Foreign Direct Investment (FDI) policies. Such that enabling this as the well-liked choice of entity for foreign promoters.
With the protection of various benefits given by The Company's Act 2013 Private Limited became most popular option to start Business in India
Liability of shareholders is Limited to there Capital Commitment with Company
Ability to raise equity funds
It has a separate legal entity status and perpetual existence
Enables them to offer employee stock options to acquire in top talent
Easy to Sell
Better image and credibility in Market
Minimum Two Directors and Shareholder ( Both can be same)
Propose Registered office for the Company can be residential or commercial and it can be rented however NOC from property owner is required
Unique Name for the Company which should not be resemble with existing name of Company and Registered trade Mark
One of the Directors must be Indian Resident Director
There is No minimum capital requirement now. A company should have an authorized capital of at least Rs. 1 lakh.
Online company registration in India can be done through Fund Planner. It is a leading legal consultant, which offers quick company incorporation/registration service in India with these simple steps:
In order of preference, select at least one suitable name of business.
Make sure that the selected name does not resemble the name of any of the already registered company. Also, it should not violate the provisions of emblems and names as mentioned it the Prevention of Improper Use Act, 1950. One can avail the service to check company name availability on the portal of MCA.
Apply for Digital Signature Certificate ( DSC )
Apply for Director Identification Number ( DIN )
File e-MoA and e-AoA to register private limited company.
Apply for the PAN (Permanent Account Number) and TAN (Tax Deduction Account Number) of the company
Get issued certificate of incorporation by ROC with PAN and TAN
Open a current bank account on company name.
In India registration of Company is necessarily supported by valid legal documnets as under:
Scanned Copies of the following documents are required :
Identity Proof: PAN card or Passport (Foreign Nationals & NRIs) of Directors and Shareholders
Address Proof: Voter's ID/Passport/Driver's License of Directors and Shareholders
Latest bank statement/telephone or mobile bill/electricity or gas bill (less than 2 months old) of Directors and Shareholders
Passport-sized photograph, Signature specimen (Directors Only)
Propose registered office of Company's recent copy of electricity bill or the property tax receipt or water bill must be submitted. Along with the rental agreement, utility bill or the sale deed and a letter from the landlord with her/his consent to use the office as a registered office of the company should be submitted.
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A Private Limited Company is a Company registered and privately held for small businesses. Members of a Private Limited Company have liability limited to the shares held by them.
It requires at least 2 and a maximum of 15 people to register Private Limited Company as directors.
No, company registration process on DocsPlanner is a fully online process. All the documents are filled and submitted online. You may need to send us scanned copies of respected documents & forms.
Considering you have all the required documents in order. It won't take any longer than 15 days.
The process to register a company in India follows a few naming guidelines. You can get insight into this process here. Also, you can also verify if your name is available by clicking here.
Identity and Address proof of all willing directors are a must. No Objection Certificate from the owner of registered office premises must be submitted. Click here to get the full list of required documents.
DSC is an electronic instrument used to sign digital documents. It is issued by certifying authorities, such as e-Mudhra and TCS. As all documents needed are digital, so directors need a DSC.
Yes, it has continuous existence, as long as the annual compliances are met. If you do not meet the requirement, it will go dormant until it is struck off the register.
This cost can be broken down into four categories. Cost of integrating a private limited company, Cost of accounting & auditing, Cost of compliance and daily expenses. You can start spending as low as Rs. 40,000 on all these.
These documents contain the rules, mission, and vision of your company. They define the exact business, roles, and responsibilities of respected directors and shareholders.
No, at least two directors are needed to form a private limited company. If you want, you can register a One Person Company, in case you are the sole owner of the company.
Any individual person or organization can become a member of a private limited company. It also includes foreigners and NRIs. They only need to hold a valid PAN Card and Passport (in case of NRI/Foreigner).
No, there is no minimum capital required to start a private limited company.
DocsPlanner can form a Private Limited Company in 15-20 days This time may vary depending on the required documents provided by the applicant. To speed up the process, please pick a unique name as the proposed company name. Do ensure that you have all the necessary documents before starting the online company registration.
There is no any prescribed qualifications required to become a director or shareholder of Private Limited Company. Any person of sound mind can start a Company
The person should be of
1. Sound Mind
2. Major of age
3. Citizen or Resident of India
Any individual who intend to become a Director in the Private Limited Company need to obtain Director Identification Number (DIN) for which proof of Identity and proof of residence is required to submitted along with required fee.
The registered office is the place where general meeting, business meeting are holds and records and receiving correspondence from all statutory government are kept.
It does not mean to be owned it can be rented also.
With the Small business Private Limited Company has a benefits of Limited Liability i.e. The Liability of Shareholder is limited to the contribution made by them.
In case of any funding requirement a Private Limited Company can issue shares to its shareholders and also can borrow form lending institutions.
Yes, Sole Proprietorship can be converted into Private Limited Company.
yes, any Foreign National, Foreign Entity, or NRI can become a Director or shareholder of a Private Limited Company.
Minimum Authorized Capital Rs. 1 Lakh is required for registering Private Limited Company and there is no minimum limit of paid up capital to form Private Limited Company.
Minimum Two Directors are required for registration of Private Limited Company.
Yes, a Private Company is allowed to have foreign direct investment in its Company.