PRIVATE LIMITED COMPANY

A Private Limited company is a closely (privately) held business entity which is registered under Companies Act, 2013. The ultimate ownership of such companies remains in the hand of few people.

There can be maximum 50 shareholders in Private Limited Company and liability of such shareholders is limited up to the unpaid amount of shares. Maximum 15 directors can be appointed in a Private Limited Company.

Advantages of Private Limited Company:

• Limited Liability
• Separate Legal Entity
• Ownership can be transferred easily
• Lower Tax Rates
• Increased Investment Opportunities
• Increased Goodwill and Brand Value

Checklists of documents required for Registration of Private Limited Company:

• Self attested copy of PAN card for Indian Nationals;
• Notarized and/or apostilled passport copy for Foreign Nationals
• Self attested copy of Passport/Voter ID/Driving license (for Identity Proof)
• Passport size photographs of all individuals
• Copy of Telephone/Mobile/Electricity bill/Bank statements (not more than 2 months old) of Directors (for Address Proof)
• Electricity/Gas bill (Not more than 2 months old) for office premises       
• In case of rented premises a notarized copy of Rent Agreement with a No Objection Certificate (NOC) for conducting business
• Registered Title document in the case of self-owned premises 
• Mobile no, email id of each Director/shareholder
• Proposed Shareholding pattern

Minimum Requirement

• A minimum of 2 Directors
• A minimum of 2 Shareholders
• A minimum of 1 director to be Indian Resident
• DSC (Digital Signature Certificate) for 2 directors
• DIN (Director Identification Number) for ALL company directors, can be applied while incorporating the Company (max 3 DINs)

Registration Process

1. Name approval: 

• Name for Company is applied through simple web based form. We can apply for total four names - Two names at a time followed with one resubmission chance.
• Name is available for 20 days from the date of approval.

2. Obtaining DSC:

• After applying for name, next step is to apply for digital signature of all directors/shareholders.

3. Preparation of Spice forms:

• After collection of all the necessary documents and signing them by directors, the next step is to fill the spice forms, attach all the attachments, affix DSC and submit it on MCA portal.

4. Allotment of Certificate of Incorporation (COI) with PAN/TAN:

• The MCA will issue COI in 3-4 days if all the documents are in order as required or else will raise objection requiring correction and resubmission.
• However, COI is issued with PAN and TAN of Company.

5. Certificate of Commencement of Business:

• Every Company within 180 days of its incorporation has to file Certificate of Commencement of Business with MCA to commence business.