private limited company registration process

As an entrepreneur, it is important to consider key factors while choosing the entity type. More than 90% of the companies incorporated in India follow the Private limited company business structure. It is one of the most preferred business models not only by growing start-ups in India but also by VCs, Angel Investors and banks. The reason is that funds can be easily raised from private investors. Few individuals go for One Person Company (OPC) registration as it is also a private limited company, which is ideal for individuals who do not want to share ownership. There is no minimum capital required to register a company.

Why Register a Private Limited Company?

There are several reasons to register a private limited company. It establishes separate legal identities and enhances credibility by being registered as a corporate entity. The top reasons include:

Better credibility in the market

Private Limited Company is a famous business structure. Government agencies, corporate customers and vendors prefer to deal with this type of business structure instead of proprietorship or normal partnerships. Even investors prefer Private Limited Companies as they are well structured. And it is easy to exit from a private limited company.

Limited Liability

The owner’s liability stays limited and there is limited liability protection to the director's assets.

Easy to raise funds

Unlike LLPs and OPCs, with Pvt. Limited company business structure, it is easy to raise funds and loans through banks, Angel Investors and Venture Capitalists.

Easy to expand

Private companies can be easily converted into public companies.

Private Limited Company Registration Process

Obtain DSC (Digital Signature Certificate)

The first step to register a private limited company is to obtain the DSC of the directors and subscribers to MOA. DSC is mandatory for all the directors in the company. DSC is used to sign e-forms to ensure the security and authenticity of the e-forms.

The documents needed for Digital Signature Certificate are:

  • Passport size photo
  • Self-attested address proof
  • Self-attested PAN card

Obtain DIN for Directors

DIN stands for Director Identification Number. DIN is assigned by the Ministry of Corporate Affairs and the number is allotted for a lifetime. This unique number is mandatory for a director, who is to be appointed in any company.

The documents required for application of DIN are:

  • Passport size photo
  • Self-attested address proof
  • Self-attested PAN card

Reservation of Name

The next concern is how to register a company name. You must critically follow the rules set by the Registrar of Companies (ROC) while suggesting a name for your new private limited company.

Standard Format is Unique name plus Descriptive name plus Private Limited

Unique name

Think creatively to come up with a unique name and ensure that this name has not been already registered.

Descriptive name

The descriptive name refers to the type of business you are dealing with. For example, consulting.

Search a Pvt. Ltd company registration name availability

We run a search to check the availability of the specific company name in India against the MCA and trademark database. Our primary focus in company registration in India is to ensure that the company name has not already been taken by another legal business. That is why we recommend businesses to come up with three to four alternative names during the approval stage.

Check these things while considering a name
  • Choose a unique name
  • If there is an existing trademark, it is not possible to register your company name.
  • Do not use abbreviations in the name
  • Ensure that the name is not generic
  • Do not include the country’s name

Certificate of Incorporation

After the name is reserved for your company, you can apply for a certificate of incorporation by filing SPICe forms (MOA and AOA). MOA stands for Memorandum of Association of Company where it prescribes the scope of operations of the company. AOA stands for Articles of Association where it states how the company will be carrying its operations. Once MOA and AOA are approved, you will get an incorporation certificate. At SetMycCompany, we help you to complete the private limited company registration process within 8-10 days

Online Registration Process

With SetMyCompany, the incorporation process is a step by step process carried out by a team of experts. The registration process is done online. So, all the forms need a digital signature. DSC is compulsory for all.

Step 1 Acquire Digital Signature Certificate (DSC)
Step 2 Apply for the Director Identification Number (DIN)
Step 3 Application for the name availability
Step 4 Drafting MOA (Memorandum of Association) and AOA (Articles of Association)
Step 5 Filing of MOA and AOA with MCA for the approval
Step 6 Acquiring Certificate of Incorporation from MCA

Requirements for Company Registration

There must be at least two directors and at most, there can be 15. At least one director must be a resident of India.

The company name should be unique and it should not match with existing companies or trademarks in India.

There is no minimum capital amount for a Private Limited Company. The company should have an authorized capital of at least Rs. 1 lakh.

The registered office can be a commercial space or even a rented home. If it is a rented home, NOC must be obtained from the landlord.

List of Documents Required

Kindly have the following sets of documents handy to make your registration process hassle-free.

Self-attested PAN card copy
Self-attested address proof (Passport/Driving Licence/Voters ID/Aadhar Card)
Self-attested Bank statement or Mobile bill or Gas (Latest)
Proof of registered office (Electricity bill/ landline bill/Mobile bill/Gas Bill)
Rent agreement and No objection (NOC) from the person who owns the property

Why SetMyCompany for Private Limited Company Registration?

SetMyCompany is a professional service firm that started in the year 2010 built on the three important pillars – Responsibility, Accuracy and Transparency. We help you deal with private limited and limited liability company registration in India, which is the most popular corporate entity in India. Our team of experts is ready to help you with the registration process. The Pvt. Ltd Company registration fees are affordable. Take advantage of SetMyCompany today for our team of experts is ready to help you with the registration process and the fee is affordable.

Primary Requirements for the Incorporation of a "Private Limited Company"?

There are a few prerequisites that businesses should standardly adhere to, so as to be recognized as a private limited company Registration Process and they include the following characteristics:

Benefits of a Pvt. Ltd. Company in India

Certain advantages are specifically noted with the private limited companies of India. This is one of the business structures that enjoy the property of a separate legal identity as well as hold a limited level of risks to its assets; moreover, there is only a limited liability with the members and/or partners too. The company can still have perpetual succession until there is a proper legal dissolution. And there is no pressure from the sides of funding and capital investments.

FAQs

The registration of a Pvt. Ltd Company is done in the following 4 steps:

  • Obtain DSC (Digital Signature Certificate)
  • Obtain DIN (Director Identification Number)
  • Reservation of company name
  • Certificate of incorporation
  • Step 1 – Acquire Digital Signature Certificate (DSC)
  • Step 2 – Apply for the Director Identification Number (DIN)
  • Step 3 – Application for the name availability
  • Step 4 – Drafting MOA (Memorandum of Association) and AOA (Articles of Association)
  • Step 5 – Filing of MOA and AOA with MCA for the approval
  • Step 6 – Acquiring Certificate of Incorporation from MCA

It takes 8 to 10 days to register a Private Limited Company in India.

A Pvt. Ltd company must have a minimum of 2 directors and can have a maximum of 15 directors.

You can check the registration status from the MCA website, http://www.mca.gov.in/.

Registration of Pvt Ltd company can be done with quick and accurate results from SetMyCompany. The expertise here ensures that your business gets registered within 12* days or so.

The expected duration to register a private limited company will depend majorly on how fast you submit the required document. However, on a standard basis, you can get these official steps done within 10 to 15 days.

The cost to register a private limited company can vary based on the service requirement as well as the service provider. You may contact SetMyCompany for getting personalized details regarding your company registration needs.

Follow these steps to form a private limited company - select a suitable name and apply to the concerned ROC. File all the official documents and choose ‘Pvt Ltd’ as your desired business structure.

There are 3 compulsory ROC compliance procedures for a private limited company, namely Form ADT 1 (appointment of the first Auditor of the company), Form MGT 7 (all Indian registered companies annually), and Form AOC 4 (filing the balance sheet along with the statements of Profit and Loss Account and Director Report).

The documents that are required for private company registration are as follows:

  • Self-attested PAN card copy
  • Self-attested address proof (Passport/Driving Licence/Voters ID/Aadhar Card)
  • Self-attested Bank statement or Mobile bill or Gas (Latest)
  • Proof of registered office (Electricity bill/landline bill/Mobile bill/Gas bill)
  • Rent agreement or No objection (NOC) from the person who owns the property

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Planning to start your business in India? Welcome to SetMyCompany, which is the right company for quick and easy start-up registration. We help you choose between different types of organisations and support you throughout all stages. Our other services include accounting and booking, due diligence, GST compliance services, payroll and investment compliance. We strive to achieve 100% client satisfaction.

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