What is a Private Limited Company?
A Private Limited Company is a type of business entity that is privately held by a small group of people. It offers limited liability protection to its shareholders, meaning their personal assets are protected from business debts and liabilities. The company has a separate legal identity from its owners and can enter into contracts, own property, and sue or be sued in its own name.
Key Benefits of Private Limited Company
Private Limited Companies offer several advantages:
Limited Liability Protection - Shareholders' personal assets are protected
Separate Legal Entity - Company has its own legal identity
Easy Transfer of Ownership - Shares can be easily transferred
Perpetual Succession - Company continues even if shareholders change
Easy Access to Funding - Can raise capital through equity or debt
Tax Benefits - Lower corporate tax rates compared to partnership firms
Professional Credibility - Enhanced business credibility with customers and suppliers
Eligibility Criteria for Registration
To register a Private Limited Company in India, you must meet these requirements:
Minimum 2 Directors (Maximum 200 Directors)
Minimum 2 Shareholders (Maximum 200 Shareholders)
Minimum Authorized Capital of ₹1,00,000
At least one Director must be an Indian Resident
Registered Office address in India
Directors must have valid PAN and Aadhaar
Required Documents for Registration
Gather these essential documents before starting the registration process:
PAN Card of all Directors and Shareholders
Aadhaar Card of all Directors and Shareholders
Passport size photographs of Directors
Proof of registered office address (Rent Agreement/Sale Deed/Utility Bills)
No Objection Certificate from property owner
Bank statement or utility bill as address proof
Digital Signature Certificate (DSC) of Directors
Director Identification Number (DIN) for all Directors
Step-by-Step Registration Process
Follow these steps to register your Private Limited Company:
Step 1: Digital Signature Certificate (DSC)
Obtain DSC for all directors from authorized certificate agencies. This is mandatory for filing online applications.
Step 2: Director Identification Number (DIN)
Apply for DIN for all directors through MCA portal. Each director needs a unique DIN for their lifetime.
Step 3: Name Reservation
Check name availability and reserve your company name through RUN (Reserve Unique Name) service on MCA portal.
Step 4: File SPICe+ Form
File SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form with all required documents.
Step 5: PAN and TAN Application
Apply for PAN and TAN simultaneously through SPICe+ form for tax registration purposes.
Step 6: Certificate of Incorporation
Once approved, MCA will issue Certificate of Incorporation along with PAN and TAN.
Registration Fees and Timeline
Understanding the costs and timeline involved:
Government Fees:₹4,000 to ₹5,000 (depending on authorized capital)
Professional Fees:₹8,000 to ₹15,000 (varies by service provider)
DSC Cost:₹1,500 to ₹3,000 per director
Total Estimated Cost:₹15,000 to ₹25,000
Timeline:15-20 working days (if all documents are in order)
Conclusion
Registering a Private Limited Company in India has become more streamlined with digital processes, but it's crucial to follow the correct procedures and maintain compliance. Consider consulting with legal experts to ensure smooth registration and ongoing compliance with regulatory requirements.