Private Limited Company

Privately owned companies are those where owners own all the shares in the organization
Private limited company registration has significant importance in providing this ownership structure, allowing entrepreneurs to safeguard personal assets while fostering operational control.

Furthermore, opting for a private limited company enhances credibility and financial assistance opportunities
The shareholders might hire directors, who manage the firm or operate themselves.
This level of control and ownership in a private limited company is crucial for entrepreneurs seeking a balance between autonomy and risk management.
Opting for a private limited company enhances credibility and financial assistance opportunities. The private limited company registration ensures legal compliance, providing a foundation for the business to thrive with protected assets, controlled management, and improved access to resources.

Eligibility Criteria

• The shareholders and directors may be the same individual
• The company should have at least two directors and shareholders
• One of these directors need to be an Indian Resident
• The company should have INR One Lac (100,000) as the Minimum Authorized Share Capital
• Provide the Director Identification Number (DIN) for all the directors
• Digital Signature Certificate for one witness and 2 promoters

Documents Required

Registration Procedure

You can register private limited company by following process

  • You need at least two directors and two shareholders to register a private company.
  • Among them, one of the members needs to be an Indian resident. The shareholders may consist of companies, individuals, or LLPs. However, only one individual may become a company director.
  •  A director may not necessarily be a shareholder of the respective organization. Likewise, a shareholder may not be a director in the company.
    Members or shareholders are the individuals holding shares in a particular organization.
  • The management of the company is entrusted to the directors. They look after legal adherence to different norms. In general, shareholders appoint the directors.
  • According to the laws of the Indian companies, only a single individual can hold the post of the director.
  • DSC is the Digital Signature Certificate which is required for signing electronic documents
  • The director requires the DSC to authenticate the documents that must be submitted to the ROC.
  • DIN stands for Director Identification Number; it is a unique identification number for the directors
  • For Indian nationals who apply for this number, it is essential to have a PAN Card.
  • For foreign nationals, the passport would serve the purpose.
  • You should also have a valid address of the company's registered office.
  • You can use one of the promoters’ residential addresses or any other address that can be identified for this purpose.
  • The correspondence connected to the respective company will be dispatched to the registered address by the ROC.
  • The location of your office would influence the ROC’s jurisdiction.
  • As a private limited company, you should not have any minimum limit of paid-up capital.
    Therefore, you can use any amount as the authorized capital. The fee for registering a company depends on the capital authorized.
  • Before you proceed with the incorporation process, you need to file an application, through which the company's name gets approved by the ROC.
  • You must come up with multiple names in the application for the company, arranging them in a preferential order.
  • Follow the Company Name Guidelines while applying with the company name.
  • In INC-1, the application with the company name has to be filed with the Ministry of Corporate Affairs of the Indian government.
  • In the process, they will check whether the proposed name is available to register your company.
  • When you obtain this approval, this name will be in reserve for a span of 60 days, within which you need to execute and file the documents for company registration.
  • After the company name, the words ‘Private Limited’ should be added at the end.
  • The promoters need to execute documents like AOA and MOA for company incorporation in the prescribed format when the name of the company gets approved.
  • The subscribers must execute the AOA and MOA.
  • They need to furnish details like their father’s name, own name, occupation, residential address, and how many shares they decide to buy, writing the details in their handwriting. and need to sign this document.
  • It’s necessary to attach a witness’s signature,
  • After the execution of the AOA and MOA, you need to submit a copy for company registration to the ROC of the state under concern.
  • For reference in the future, the promoters should reserve it.
  • One also needs to fill in the details of the registered office and director with the ROC, besides the incorporation documents.
  • After verifying the AOA, MOA and other details, the company will be registered by the ROC and issue the COI (Certificate of Incorporation).
  • The ROC will also allocate a CIN (Corporate Identification Number) to the company which has been registered.
  • For a private limited company, it is possible to start operating its business after getting the Certificate of Commencement of Business and COI