Private Limited Company Registration

What is a Private Limited Company?

A private limited company is a private entity held by small entities. In order to register a private company, a minimum 2 members are required, but there is a limited on maximum number of members, that is 200. The best part is that the liability of directors and members is limited only to the extent of their unpaid amount of the shares. 

Requirements of Private Limited Company

The requirements of a private limited company are mentioned below:

• There must be a minimum of 2 directors and shareholders for the registration of a company under the Companies Act, 2013. Moreover, there can be a maximum of 200 members and 15 directors.
• For registration of a private limited company, the directors must have a directors identification number (DIN).
• Among all the directors of the company, at least one director must be an Indian resident who must have stayed in India for a total of 182 days in the previous calendar year.
• The name of your private limited company must be unique and not similar to any existing company.
• During the company registration, the applicant is required to submit the permanent address and address of the place of operation of the company, where all the business activities are the company is conducted on every day basis. 

Types of Private Limited Company

There are three types of private limited companies on the basis of share capital: 

Limited by Shares

In such companies, the liability of shareholders or members is limited to a particular extent. 

Limited by Guarantee 

In such companies, the liability of the members is limited by a guarantee. Such a guaranteed amount is claimed from the person who gives the guarantee to indemnify the losses of the company to the extent as decided, during the company winding-up process. 

Unlimited Liability 

Here the liability of all the members will be unlimited to the extent of their personal property as well. In case of default or winding up, the member will be held personally liable to repay the debts of the company. 

Documents required for Online Private Limited Company Registration

Ensure you have the following documents to register new company,

• For Indian Nationals: Self-attested PAN card copy, passport-sized photo, Aadhaar Card, proof of identity, and address proof.
• For Foreign Nationals: Notarized documents, passport-sized photo, passport, and address proof.
• Registered Office Documents: Proof of business address, copy of the rent agreement (if applicable), and owner’s no objection certificate.

Procedure for Private Limited Company Registration

The process of Private limited company registration in India is mentioned below: 

Step 1: Get a Digital Signature Certificate (DSC)

A Digital Signature Certificate (DSC) from the Controller of Certification Agencies (CCA) is required for each director of the proposed company. For this, the director will be required to furnish a few important information including a phone number, email address, PAN, Aadhaar card, and passport-sized photographs.

Step 2: Obtain a Director Identification Number (DIN) 

If you want to serve as a director for the organization, you must have a Director Identification Number (DIN). This is important because DIN is required for signing the documents of the company. 

Step 3: Reserve the Company’s Name (SPICe+ Part A)

To obtain a distinctive business name, start by filling out the SPICe+ Part A form. Here, you will have to choose the type of business, class, category, and subcategory, and providing a thorough business description. Two names must be suggested for approval.

Step 4: Fill application for Company Incorporation (SPICe+ Part B)

Submit complete details about the capital, the address of the registered office, the subscribers and directors’ information, the stamp duty, the PAN and TAN application, and any required attachments. Make sure that the requirements of the Companies Act, 2013 are complied with properly. Therefore, it is advised to take help from industry experts.

Step 5: Submission of MOA and AOA

Now, the next step is to draft the two most important documents, that is MOA and AOA. Once the documents are drafted, you need to submit them to the Registrar of Companies. After this process is done, you need to register for a bank account, GST, EPFO, ESIC, and a store and establishment license (which may vary by state) by submitting the AGILE-PRO-S form.

Step 6: Grant of Incorporation Certificate

The MCA will issue the Certificate of Incorporation (COI) with the Company Identification Number (CIN), PAN, and TAN after a successful document verification process.

Private Limited Company Registration Fees in India

Fees for registering a Private Limited Company typically include government filing charges, professional service fees, and additional costs for name reservation, legal documentation, and compliance services. Prices vary by jurisdiction.