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Private Limited CompanyRegistration in India

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Get Your

Private Limited CompanyRegistration in India

with SOFTRE®

SIMPLE. AFFORDABLE. TRANSPARENT. LEGAL.

Start Working with us

What is a Private Limited Company in India?

 A Private Limited Company is one of the most popular types of business entity in India. It is formed by a minimum of 2 directors or 2 people. Private Limited Company registration is defined by stating the objectives in Memorandum of Association and Articles of Association. The business entity can be owned by a group of members called shareholders with a minimum requirement of 2 members or shareholders or subscribers. The maximum number of subscribers for a private limited company is 200. Once exceeding the limit.

 A Private Limited Company is one of the most popular types of business entity in India. It is formed by a minimum of 2 directors or 2 people. Private Limited Company registration is defined by stating the objectives in Memorandum of Association and Articles of Association. The business entity can be owned by a group of members called shareholders with a minimum requirement of 2 members or shareholders or subscribers. The maximum number of subscribers for a private limited company is 200. Once exceeding the limit.

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Grow your organisation in the world of digitization, emerge thriving and re-invent new ways to operate. SOFTRE® helps you in building scalable digital business with stronger digital presence while also protecting your digital assets and staying compliant.

Frequently Asked Questions

For Private Company registration in India, following requirements must be fulfilled:
1. Minimum 2 directors shall be appointed, out of which one must be a resident of India.
2. Minimum 2 shareholders are required for this registration. Here, an individual may become shareholder and director at the same time.
3. A place of business in India must be provided as a registered office address.
During the registration, a minimum of INR 1 Lakh should be provided as an authorized capital. A minimum paid-up capital requirement is eliminated as a part of Government’s initiative to simplify the business registration in India. However, each shareholder must subscribe at least 1 share for the registration to introduce the sufficient amount for running the business.
The name of a company should be formulated as mentioned above. The applicants can provide the maximum of 2 names with their preference order under RUN form. The applicant should comply with the provisions of the Act or regulations. The registrar may ask to re-submit the application with a different name if names do not fall under the criteria of uniqueness, relevancy or do not fulfill other requirements.
Any natural person above the age of 18 years can become the director in the company after procuring Director Identification Number (DIN). And since there are no specific criteria provided in terms of citizenship or residency, a foreign national can also become a director. The application of DIN Allotment is now merged with the application for the formation of a company subject to a limit of maximum 3 DIN.
Director Identification Number is a unique number assigned by the Ministry of Corporate Affairs to Individuals on whose name the application is made, allowing an individual to be a Director in any Company or Designated Partner in an LLP.
Digital Signature Certificate is provided in the form of a token issued by Certified Authorities. Any form filed for online company registration in India shall be submitted after affixing the DSC of an Applicant. Also, the directors will require DSC for DIN application and the subscribers to MOA shall possess DSC for submitting e-forms for incorporation.
Authorised capital shows the maximum amount of capital that a company can raise by way of issue of shares at present or in the future. Whereas, the Paid-up Capital refers to the actual amount raised by a company i.e.; amount paid by the shareholders on the issuance of shares. One can register a company in India by any amount of paid-up capital which can be less or equal to the authorized capital but not exceeding the authorized capital.
Yes, a Private Company can carry multiple businesses if it is mentioned in the company’s MoA and approved by a registrar. The company can mention more than one business operating within the same field or of the same nature. Activities which are unrelated, such as fashion designing and event management or construction, those cannot be registered under the same company.
Yes, it is possible to register a Private Company at a commercial or residential place by providing the sufficient proof. A registered office is a place where the business receives communication, if any, from the MCA or any concerned authorities. This address is displayed at the portal of Ministry as well.
Yes, NRIs or foreigners can hold shares subject to FDI guidelines. However, a foreign participation above 50% will place the company under the category of Foreign Company.
Once, the company is registered, it should follow below-mentioned requirements on priority:
The opening of the company’s current account within 30 days after receiving the PAN card.
Appointment of a Statutory Auditor
Depositing paid-up capital as mentioned while registration
Issue and allotment of shares
During every financial year, the company must hold one Annual General Meeting (AGM) and at least 4 board meetings (one in each quarter). Further, the accounts and financial statements must be audited by an independent auditor. Subsequently, it shall file form AOC – 4 and MGT – 7 as part of Annual Compliance within given time.