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Private Limited Company

Company registration including Government Fee &
Stamp Duty*. Incorporation kit with share certi?cates.

Name Approval +
Name Approval
Incorporation

✓ Instant Filing

✓ 4 Name Choices

✓ Company Registration

✓ Share CertiZcates

✓ Current Account Opening

✓ 2 Digital Signatures

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Company Registration in India

In India, company registration can be completed online

through IndiaFilings. Private limited company is the most

common type of legal entity that is preferred by millions of

Indian Entrepreneurs and popular startups like Flipkart,

PhonePe and Swiggy. A private limited company can be

registered online in less than 10 days at a very affordable price

of just Rs. 7899.

What is a Private Limited Company?

A Private Limited Company (PLC) is one of the most common

types of legal entityin India. Private Limited Companies are

governed by the Companies Act, 2013 and require a minimum

of 2 Directors and 2 Shareholders with one of the Directors

being an Indian Resident and Indian Citizen.

To register a company in India, the following are minimum

requirements:

✓ 2 Directors – 1 Person should be an Indian National and

Indian Resident

✓ 2 Shareholders – The Directors can be shareholders

✓ Registered OWce in India

100% Foreign Direct Ownership (FDI) is permitted in most

sectors in India and there is no restriction on foreign

shareholding of a private limited company. Hence, most

foreign subsidiaries are established in India as private limited

company.

Documents Required for Company

Registration
The proposed directors of a private limited company must

present the following documents as proof of identiZcation in

order to register a company:

Indian Nationals: PAN card mandatory

Foreign Nationals: Passport is mandatory

In addition to the above document, the Directors must submit

one of the following documents that contain the address of

the Director.

Indian Nationals: Passport / Driver’s License / Election ID /

Ration Card / Aadhar ID

Foreign Nationals: Drivers License / Bank Statement /

Residence Card

Finally, as proof of residency, the prospective Directors must

produce one of the following documents. This document must

have been generated within the last two months:

Indian Nationals: Bank Statement / Electricity Bill / Phone Bill

Foreign Nationals: Bank Statement / Electricity Bill / Phone

Bill

If one of the company's shareholders is a company based in

India or abroad, the following documents must be submitted:

✓ Board resolution authorizing investment in the company

✓ Incorporation CertiZcate of the Company

✓ Address proof of the company

Capital Required to Start a Company

A company can be started in India with a very minimum

amount of capital. There is no Zxed amount and the

shareholders of the company being incorporated can

determine the capital they wish to contribute. While setting up

the capital structure of the company, the following are some

of the concepts to be kept in mind:

Face Value of Share: The face value of a share is the price per

share with which the company is incorporated. Normally, the

face value of share is Rs. 1 or Rs. 10 or Rs. 100 or Rs. 1000 or

Rs. 10,000.

Authorised Capital: Authorised capital is the total value of

shares a company can issue to shareholders. Normally, all

companies are incorporated with an authorized capital of Rs.

1 lakh or Rs. 10 lakhs. If a higher authorized capital is required,

the company would be required to pay additional fees to the

Ministry of Corporate Affairs. The authorised capital of a

company can be increased at any time after incorporation.

Paid-up Capital: Paid-up capital of a company is the number

of shares issued to shareholders for which they have paid or

deposited money to the company. Paid-up capital of a

company cannot be more than the authorized share capital of

the company.

Company Registration Process

The following are the steps involved in registering a company

in India:

Step 1: RUN Name Approval

An application for company name approval is Zrst submitted

to the Ministry of Corporate Affairs to reserve the company

name. In the name approval application, 1 or 2 names with

business objectives can be submitted. If a name approval is

rejected, 1 or 2 more names can be resubmitted. Normally, the

MCA approves all name approval applications in less than 5

working days.

Step 2: Digital Signature for Directors

In India, the Ministry of Corporate Affairs does not allow wet

signatures. All signatures for Zlings with the MCA must be

completed with a digital signature that is issued by a

CertiZcation Authority in India. Hence, digital signatures are

mandatorily required for the Directors before incorporation.

Digital signature for the Directors will be obtained through an

Authorized Certifying Authority by IndiaFilings. To obtain

Digital Signature, the Directors will have to submit a copy of

their identity proof and complete a video KYC process. If the

Director is a foreign national, the passport and other

documents submitted must be apostilled by a local embassy.

Step 3: Incorporation Application Submission

Once the digital signatures are obtained, the incorporation

application can be Zled in SPICe Form to the MCA with all

relevant attachments. Along with the incorporation

application, the Memorandum of Association (MOA) and

Articles of Association (AOA) of the company are Zled. If the

MCA Znds the incorporation application to be complete and

acceptable, the Incorporation CertiZcate is granted along with

PAN of the company. The MCA normally accepts all

incorporation applications in less than 5 working days.

Private Limited Company Compliances

Once a company is registered in India, various compliances

must be maintained from time to time to avoid penalties and

prosecution. The following are some of the compliances a

company would be required to complete after company

registration:

Auditor Appointment: All companies registered in India must

appoint a practicing and licensed Chartered Accountant

registered with the ICAI within 30 days of incorporation.

Director DIN KYC: All persons who hold a Director

IdentiZcation Number (DIN) – which is allocated during the

incorporation process must complete DIN KYC each year to

validate the phone and email address on record with the

Ministry of Corporate Affairs.

Commencement of Business: Within 180 days of

incorporation, the company must open a Bank Current

Account and the shareholders must deposit the subscription

amount mentioned in the MOA of the company. Hence, if the

company was to be incorporated with a paid-up capital of Rs.

1 lakh, then the shareholders must deposit Rs. 1 lakh in the

Company’s bank account and Zle the bank statement with the

MCA to obtain a commencement of business certiZcate.

MCA Annual Filings: All companies registered in India must

Zle a copy of the Znancial statements with the Ministry of

Corporate Affairs each Znancial year. If a company is

incorporated between January – March, the company can

choose to Zle the Zrst MCA annual return as a part of the next

Znancial year’s annual Zling. MCA annual return consists of

Form MGT-7 and Form AOC-4. Both these forms must be

digitally signed by the Directors and a practising professional.

Income Tax Filing: All companies must Zle an income tax

return using Form ITR-6 each Znancial year. Income tax Zling

must be done for each Znancial year before the due date –

irrespective of the incorporation date. The income tax return

of a company must be digitally signed using one of the

Director’s digital signature.

Registered Office of Company

All companies registered in India are required to maintain a

registered oWce in India. The registered oWce must have a

board with the name of the company and should be a place

where notice or communication if any can be served. Hence,

the registered oWce of a company cannot be vacant land or

under construction premises.

After incorporation, the registered oWce of a company can be

changed if required. In case the registered oWce is changed

within the same city or same Registrar of Company, the

process can be completed easily. In case the registered oWce

of a company is changed from one state to another, the

process would be longer and more cumbersome.

GST Registration after Company

Registration
During the company registration process, the Directors can

opt to obtain GST registration along with the incorporation.

However, it is not mandatory for a company to be registered

under the GST unless certain turnover limits are crossed. You

can know more about the turnover limit and process for

obtaining GST registration in our detailed guide on GST

registration in India.

Go To GST Registration

Bank Account for Private Limited

Company
After company registration, a bank current account must be

opened in the name of the company within 180 days and the

subscription amount must be deposited. If the above steps

are not completed, the commencement of business certiZcate

would not be issued and a penalty would be applicable.

The following are documents required to open bank account

for a private limited company:

✓ Incorporation CertiZcate of Company

✓ Directors KYC Documents

✓ Board Resolution Authorizing the Directors to open Bank

Account

✓ Address Proof of the Company

At IndiaFilings, we work with various banks to help our clients

open a current accounts for their companies in a seamless

fashion.

Advantages of Private Limited Company

The following are the major advantages of incorporating a

private limited company in India versus other entity types.

Separate Legal Entity

A company is both a legal entity and a juristic person.

Therefore, a company has broad legal rights to like acquiring

property, incurring debts, hiring people, etc. As a company is a

separate legal entity, the company's members (shareholders

or directors) are not personally liable for the company's

liability.

Limited Liability
A private limited company is a separate legal entity with

limited liability provisions. Therefore, the shareholders are not

liable for the losses of the company – for an amount more

than what was invested by them into the company as share

capital.

Uninterrupted Existence
A company has 'perpetual succession,' which means it will

continue to exist until it is legally dissolved. Because a

company is a separate legal entity, it is unaffected by the

death or other departure of any of its members, and it

continues to exist regardless of membership changes.

Fund Raising
A private limited company has multiple options for

fundraising. A company can raise funds from shareholders,

investors, angels, venture capital funds, private equity funds,

foreign funds, NBFCs, banks and other Znancial institutions.

Only a company can raise debt and equity funds from

investors.

Disadvantages of Private Limited

Company
While a company has various advantages, registering a

company may not be ideal for all entrepreneurs due to the

following reasons:

Compliances
A company has to mandatorily maintain various compliances

irrespective of business turnover or activity. Hence, operating

a company involves a minimum recurring cost each year.

Related Guides
What is a private limited company India?

What are the advantages and disadvantages of a private

limited company?

Private Limited Company Registration

Comparison – One Person Company and Private Limited

Company

How do you name a Private Limited company?

How to open a current account for a Private Limited

Company?

CIN Number of a Company: Everything You Need to Know

Search Business Name Search Trademark

Check Business Name Availability

Find if business name can be registered with MCA in
India

Enter business name SEARCH

To register a company in India, the Zrst step is to obtain name

approval for the business from the Ministry of Corporate

Affairs (MCA). This process takes about 24-48 hours. A private

limited company name in India must end with the words

private limited. One Person Company ends with (OPC) private

limited. LLP end with LLP and Section 8 companies can end

with words like foundation, association or institution.

A company name proposed to be registered cannot be

identical or similar to an existing company name. Also, every

company name must include a word that denotes the activity

undertaken. For example, in VERVE Financial Services Private

Limited - Financial Services denote the activity undertaken.

Check Business Name Availability

Documents Required

PAN Card
PAN is mandatory for Indian Directors.

Passport (Foreign Nationals Only)

Passport is mandatory for Foreign Directors or

Shareholders.

Aadhaar Card
Aadhaar is mandatory for Indian Directors.

LOAD MORE

Documents Required for LLP Registration 11

Documents Required for Proprietorship Registration 2

Documents Required for Trademark Registration 6

Documents Required for GST Registration 10

Documents Required for Partnership Firm

5
Registration

Proprietorship vs Limited Liability

Partnership (LLP) vs Company

Features Proprietorship Partnership L

DeKnition Unregistered A formal A Limite

type of agreement Partners

business between two or hybrid

entity more parties to combina

managed by manage and having fe

one single operate a similar to

person business partners

and liabi

similar to

compan

Ownership ✓ Sole ✓ Min 2 ✓ Des

Ownership Partners Partner

✓ Max 50

Partners

Registration 7-9 working

Time

Promoter Unlimited Liability

Liability

Documentation ✓ MSME ✓ Partnership ✓ LLP

✓ GST Deed ✓ Inco

Registration CertiZc

Governance - Under LLP Act,

Partnership Act

Transferability Non Transferable if

Transferable registered under

ROF

Compliance ✓ Income ✓ ITR 5 ✓ For

Requirements tax Zling if ✓ For

turnover is ✓ ITR

more than

Rs.2.5 lakhs

Private Limited Company FAQ's

What is the registration process of a company? ↓

How much does it cost to register a company? ↓

What are the types of registration? ↓

Can NRIs or foreign national or foreign entities register a

company in India? ↓

How do I check the availability of names for my company? ↓

Is GST registration mandatory at this stage? ↓

What are the compliances of a Private Limited Company? ↓

When is the statutory auditor to be appointed? ↓

Which Form is to be ?led for the ITR ?ling of Private Limited

Company? ↓

Which form is to be ?led for ?ling the annual returns of a

Company? ↓

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Proprietorship
From ₹ 2899

Class 3 Digital Signature with

ePass Token
From ₹ 1899

FSSAI Registration
From ₹ 1499

Zero Late Fee Platform

Many small businesses pay lakhs in penalty every year to the

Government for late Zling various statutory returns. Such

penalty or late fee paid is not tax deductible and is a drain on

proZtability. At IndiaFilings, our mission is to provide the most

affordable services to our customers and help them avoid all

late fee.To achieve our mission - we have built enterprise

grade technology to help you proactively know the upcoming

compliance and avoid penalty.Checkout our compliance

services below, talk to an Advisor and stop paying unwanted

late fees.

Manage Compliance for Proprietorship From Rs. 2899

Manage Compliance for Partnership From Rs. 4899

Manage Compliance for Limited Liability

From Rs. 4899
Partnership

Manage Compliance for Private Limited

From Rs. 7899
Company

Related Business Registrations

In addition to registration or incorporation, a business may

require other registrations depending on the business activity

undertaken. Talk to an Advisor to Znd out registrations your

business may require post registration.

Digital Signature
From ₹ 1499

Company Compliance LLP Compliance FY 2022-2023

Every registered entity has to comply with all the compliance

obligations after the completion of each Znancial year.

Majorly, it includes the audit of books of accounts, income tax

return Zling, and annual forms with the MCA.

Company

Form Compliance Due date Penalty

COB Commence To be Zled Rs.50,000 for non-

Filing of Business before 180 compliance

CertiZcate days of

company

Incorporation

DIR 3 Any director Before 30th Deactivation of

EKYC with DIN September the DIN

GET STARTED every year A late
LIVE CHAT
Zling fee of