Private Limited Company Registration in India

Through 100% online process, we provide fast and economical service to register a private limited company.

Starts at

₹6998.00*

Private Limited Company Registration in India

Through 100% online process, we provide fast and economical service to register a private limited company.

Starts at

₹6998.00*

What is a Private Limited Company in India?

A Private Limited Company sometimes written in short as Pvt Ltd. 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 ceases to exist and becomes a public limited company with more stringent compliance requirements. Typically, Indian startups and businesses with the idea of raising investment and scaling up to reach the sky opt for a Private Limited Company as ownership of the company is defined by shareholders. Private Limited company gets recognised as a Company through its registration under Companies Act of 2013. The governing body is the Ministry of Corporate Affairs, widely known as MCA, please take a look of the website mca.gov.in

What is a Private Limited Company in India?

A Private Limited Company sometimes written in short as Pvt Ltd. 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 ceases to exist and becomes a public limited company with more stringent compliance requirements. Typically, Indian startups and businesses with the idea of raising investment and scaling up to reach the sky opt for a Private Limited Company as ownership of the company is defined by shareholders. Private Limited company gets recognised as a Company through its registration under Companies Act of 2013. The governing body is the Ministry of Corporate Affairs, widely known as MCA, please take a look of the website mca.gov.in

Tax benefits from Private Limited Company

A Company in simple terms is like a body without life in it and the body is operated by a group of people. It is an instrument to remain perpetually existent through generations of people. But that being said, a company can take responsibilities and duties of a real person like legally binding contracts, possess properties in its own name, go under litigation etc.,

In short, a private limited company has the most trusted mode of procuring funds and attracting investment opportunity.

Startup’s which are looking to raise capital and businesses Looking for better credibility and recognition, better compliance and governance, and the best taxation benefits choose private limited companies.

Limited Liability

The biggest advantage of limited liability for business debts is separated from the owners of the company. The company, being a separate entity, is the owner of its assets and bound by its liabilities. The liability of a member as shareholder extends to the contribution to the share capital of the company up to the nominal value of the shares held and not paid by him. Members, even as a whole, are neither the owners of the company’s undertakings, nor liable for its debts.

Perpetual Existence

An incorporated company never dies unlike a person but exists forever as long as the compliances are met. The only exception is when it is failing, it can be closed as per company closure law.

Tax benefits from Private Limited Company

In short, a private limited company has the most trusted mode of procuring funds and attracting investment opportunity.

Limited Liability

Perpetual Existence

An incorporated company never dies unlike a person but exists forever as long as the compliances are met. The only exception is when it is failing, it can be closed as per company closure law.

Private Limited Company Registration Benefits

Director can take remuneration as salary that can be claimed as “Expenditure” in the hands of the company and is exempt in the hands of individuals under prescribed limits.

A company may pay a sitting fee to a director for attending meetings of board or committee thereof.

Deductions of company formation expenses (Preliminary Expenses) can be claimed and taxes can be saved

Deductions of Rent expense if property/office is on rent can be claimed as “Expenditure” in the hands of company and is exempt in the hands of individual under prescribed limit.

Salary expenditure of a Family Member deductible in the hands of company and exempt in the hands of individual under prescribed limit i.e. Dual savvy of tax

Entertainment expenses, Meeting expenses and Director’s Vehicle Expenses accounted in the books of the company can also be claimed as deduction.

Private Limited Company Registration Benefits

Director can take remuneration as salary that can be claimed as “Expenditure” in the hands of the company and is exempt in the hands of individuals under prescribed limits.

A company may pay a sitting fee to a director for attending meetings of board or committee thereof.

Deductions of company formation expenses (Preliminary Expenses) can be claimed and taxes can be saved

Deductions of Rent expense if property/office is on rent can be claimed as “Expenditure” in the hands of company and is exempt in the hands of individual under prescribed limit.

Salary expenditure of a Family Member deductible in the hands of company and exempt in the hands of individual under prescribed limit i.e. Dual savvy of tax

Entertainment expenses, Meeting expenses and Director’s Vehicle Expenses accounted in the books of the company can also be claimed as deduction.

Private Limited Company Registration FEES: How much does it cost to start a private limited company in India?

The Cost of Private Limited Company Incorporation / Registration of Pvt Ltd Company would start around INR 5,000/- to INR 20,000+ depending upon the No. of Directors, No. of members, authorized share capital and Professional fees.

Professional fees vary on the complexity of the business formation

Starts at

₹6998.00*

Private Limited Company Registration FEES: How much does it cost to start a private limited company in India?

The Cost of Private Limited Company Incorporation / Registration of Pvt Ltd Company would start around INR 5,000/- to INR 20,000+ depending upon the No. of Directors, No. of members, authorized share capital and Professional fees.

Professional fees vary on the complexity of the business formation

Starts at

₹6998.00*

How to search a pvt ltd company registration name availability?

Go to MCA’s official website

The Registrar of Companies (RoC) which is part of MCA across India expects applicants to follow a few naming guidelines. Some of them are subjective, which means that approval can depend on the opinion of the officer handling your application. However, the more closely you follow the rules listed below, the better your chances of approval.

The first part of the name should be a unique and not similar or trademarked name. The second part/suffix should be describing the area of business. The name will be For Eg., Amazon Internet Services Private Limited

Abbreviations, adjectives and generic words are rejected.

Consult us for specific advice on getting your desired legal name for your company

How to search a pvt ltd company registration name availability?

Go to MCA’s official website

The Registrar of Companies (RoC) which is part of MCA across India expects applicants to follow a few naming guidelines. Some of them are subjective, which means that approval can depend on the opinion of the officer handling your application. However, the more closely you follow the rules listed below, the better your chances of approval.

The first part of the name should be a unique and not similar or trademarked name. The second part/suffix should be describing the area of business. The name will be For Eg., Amazon Internet Services Private Limited

Abbreviations, adjectives and generic words are rejected.

Consult us for specific advice on getting your desired legal name for your company

Documents required

Registered Office Address Proof & Legal Documents Regarding the same.

Utility Bill as proof must be Latest less than 30 days old,

NOC from owner of premises + Rental agreement OR sale deed,

Signed Declaration (s) from Promoters,

Email of company,

Mobile of company

Address Proof Documents

Bank Statement or Passbook with the transaction entry less than 30 days old,

Electricity Bill in the name of the promoter less than 30 days old,

Telephone bill, or any other Mobile Bill less than 30 days old,

Utility bill in the name of promoters like Gas Bill less than 30 days old,

Documents to be Submitted by the Directors

Photographs of Directors,

PAN Card of Each Director,

AADHAAR,

Passport if available,

Address Proof of Promoter ,

Mobile Number (personal),

Email (personal)

NOTE: Further documents and scrutiny can be made on a case by case basis which is beyond our control.

Documents required

Registered Office Address Proof & Legal Documents Regarding the same.

Utility Bill as proof must be Latest less than 30 days old,

NOC from owner of premises + Rental agreement OR sale deed,

Signed Declaration (s) from Promoters,

Email of company,

Mobile of company

Address Proof Documents

Bank Statement or Passbook with the transaction entry less than 30 days old,

Electricity Bill in the name of the promoter less than 30 days old,

Telephone bill, or any other Mobile Bill less than 30 days old,

Utility bill in the name of promoters like Gas Bill less than 30 days old,

Documents to be Submitted by the Directors

Photographs of Directors,

PAN Card of Each Director,

AADHAAR,

Passport if available,

Address Proof of Promoter ,

Mobile Number (personal),

Email (personal)

NOTE: Further documents and scrutiny can be made on a case by case basis which is beyond our control.

Private Limited Company Registration Process

To register a Pvt Ltd Company, it takes minimum of 5 working days* to process if all documents are received without any issues.

The issues arise when there is name mismatch between identity documents of directors.

We will help you with all the documents through our Documents verification team.

Private Limited Company Registration Process

To register a Pvt Ltd Company, it takes minimum of 5 working days* to process if all documents are received without any issues.

The issues arise when there is name mismatch between identity documents of directors.

We will help you with all the documents through our Documents verification team.

Frequently Asked Questions

What are the minimum requirements to register a Private Limited Company?

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.

What is the minimum Capital Requirement?

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.

How to reserve the name of a company?

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.

Who can become a Director of a Private Limited Company?

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.

What is the Director Identification Number (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.

What is a Digital Signature Certificate? Who shall procure it?

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.

What is Authorized Capital and Paid-up Capital?

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.

Can a Private Company carry multiple businesses?

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.

Can I register the company at the residential place?

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.

Can NRIs / Foreigners hold shares in Private Limited Company?

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.

What are the statutory requirements to be fulfilled once Private Company is registered?

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

What are the Annual Compliance requirements to be fulfilled by a Private Company?

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.

Frequently Asked Questions

What are the minimum requirements to register a Private Limited Company?

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.

What is the minimum Capital Requirement?

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.

How to reserve the name of a company?

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.

Who can become a Director of a Private Limited Company?

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.

What is the Director Identification Number (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.

What is a Digital Signature Certificate? Who shall procure it?

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.

What is Authorized Capital and Paid-up Capital?

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.

Can a Private Company carry multiple businesses?

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.

Can I register the company at the residential place?

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.

Can NRIs / Foreigners hold shares in Private Limited Company?

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.

What are the statutory requirements to be fulfilled once Private Company is registered?

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

What are the Annual Compliance requirements to be fulfilled by a Private Company?

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.

Talk to a Legal Expert

Have queries? Call today

You’ve Come To The Right Place

We are experts in business formation and we have helped lot of people in starting their business across a variety of industries. Our service is fully online and industry’s lowest price.

Talk to a Legal Expert

Have queries? Call today

You’ve Come To The Right Place

We are experts in business formation and we have helped lot of people in starting their business across a variety of industries. Our service is fully online and industry’s lowest price.

SOFTRE powers businesses with Digital Strategy since 2013 to create stronger digital presence on the most agile, and secure cloud platforms available combining a suite of services that include Design, Development, Digital Marketing, Legal and Regulatory Compliance for creating scalable global businesses that is perpetual with limited liability.