Private Limited Company Registration in India

Want to register your private limited company?

Not finding the appropriate service provider?

Finacbooks offers you best services and the most popular ways by which you can easily set up your business in India. In addition to it, you will also get to learn about all the tax and regulatory advantages in relation to private limited company.

We help you register in three simple steps:

  • Firstly, we register the Directors of the company with the Ministry of Corporate Affairs (MCA)
  • Secondly, we help you in choosing the most appropriate company name
  • Lastly, we help you in drafting your company’s constitution. (Memorandum of association & articles of association)

A Private Limited Company (PLC) is considered as the most common and accepted corporate legal entity in India. The registration of a Private Limited Company is governed by the Companies Act, 2013 and Companies Incorporation Rules, 2014. No less than two shareholders and two directors are required to register a Private Limited Company. A natural person can be a director and shareholder both, while a company legal entity can only be a shareholder.

If we take the current scenario, Start-ups and small businesses are increasingly choosing Private Limited Companies for doing businesses as it becomes easy for them to raise the funds from outside and at the same time it also limits the liabilities of its shareholders. It enables owners to provide employees with the option to own shares while reserves the right to hire and retain the best talent. Foreign nationals, foreign corporate entities or even NRIs can be Directors as well as Shareholders of a Private Limited Company via Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.

A Private Limited Company has many unique features that make it an ideal business for countless small and medium sized businesses that are professionally managed or family owned. Some of the unique features of a Private Limited Company are as follows –

  • Limited liability protection to shareholders,
  • Separate legal entity status
  • Ability to raise funds
  • Perpetual existence.

Let us take a look at few immediate advantages of a Private Limited Company:

  • Greater freedom with limited liability
  • Increased capital contribution and greater stability
  • The prospects for future business scalability

What Is Included In Our Package?

Eligibility Consultation

Document Preparation

Application Drafting

Government Fees


Procedure for Private Limited Company Registration

Fill out Registration Form

You have to fill up our easy-to-use business registration form and submit the required documents to register your business.

Obtain DSC and DPIN

After issuing your documents, we provide you with Designated Partner Identification Number and a Digital Signature Certificate.

Verification and Name Approval

Your all details will be verified. Subsequently we move ahead with the name approval.

Document Submission

All the essential papers are created by us and then filed with ROC on your behalf.

Your work is done!

When your organization is registered, we hand over all the files and DSCs.


Documents Required for Pvt Ltd Company Registration in India

Identity and Address Proof:

For the Indian nationals, it is necessary to submit identity proof and address proof of all the shareholders and directors. Permanent Account Number (PAN) card copy of all the directors is also a mandatory requirement for company registration.

If you are submitting bank statements or electricity bills as a proof of address, it should not be less than 2 months old at the time of submission.

For foreign nationals, Submission of apostilled or notarized (attested to/by a notary) copy of your passport is a mandatory requirement. In case the document is in foreign language, it should be translated into English and notarized or apostilled. The address proof submitted by the director should have his name mentioned in the passport with the current address. The document submitted by a foreign national as an identity or address proof should not be older than 1 year.

Registered Office Proof:

To validate the registered office address of the company, the following documents must be submitted during company registration process or within 30 days of incorporation of the company –
  1. The registered document containing the name of the company and its address of the registered office. Or
  2. Notarized copy of lease/Rent agreement in the name of the company plus rent paid receipt copy not older than 1 month.
Following additional documents may be provided as a proof of registered office –
  1. If it is rented, the NOC from the landlord is required.
  2. Proof of utility bills such as Telephone, electricity, gas, water showing the address of the premises in the name of owner.
  • Identity proof of Directors and Shareholder

    PAN for Indian Nationals Notarised Passport Copy for Foreign Nationals

  • Proof of Registered Office in India

    Rental Agreement or Sale Deed / Copy of electricity Bill or Electricity Bill NOC letter from Landlord for Use of

  • Address Proof of Directors and Shareholders

    Passport, Drivers Licence, Aadhar card and Bank Statement

  • Signed Incorporation Documents

    Signed Digital Signature Application Documents in Hard Copy Other Incorporation Documents Signed and Uploaded


Advantages of a Private Limited Company

Separate Legal Entity

A Private Limited Company is a legal entity and a juristic individual established under the Companies Act. Thus, a company has a range of legal capacities, such as opening of a bank account, hiring of employees, taking on equity, obtaining licenses and much more. The members (Shareholders/Directors) of an enterprise have no personal liability towards the creditors of the enterprise for company's debts.

Uninterrupted Existence

A Private limited company has an advantage of perpetual succession. It means that it has an uninterrupted existence until it is legally dissolved. A company is a distinct legal entity and is unaffected by the departure or the death of any of its Directors or shareholders. It continues to exist regardless of any changes in the ownership.

Easy Transferability

The ownership of a business can easily be transferred to a company by transferring shares. The signing, transfer and filing of the share transfer form along with the share certificates are sufficient documents for transferring the ownership of a company. In a private limited company, the consent of other shareholders may be required for the transfer of shares.

Borrowing Capacity

Private limited company has the ability to raise funds in India. With the RBI permission, a company can issue equity shares, preference shares, debentures and accept deposits too. Banks and financial institutions are more willing to provide funds to a company rather than partnership firms or proprietary firms.

Owning Property

A private limited company is an artificial person who can acquire, own and also isolate property in its name. The property owned could be machinery, building, factory, residential property, land, intangible assets etc. No shareholder can claim the property of a company as long as the business is a going concern.


Registering a Private Limited Company is an Easy 3 Step Process

Obtaining DSC & DPIN

A Digital Signature Certificate (DSC) and a Designated Partner Identification Number (DPIN) both are necessary for the proposed Directors of the Private Limited Company. DSC and DPIN can be obtained within five to seven working days for the proposed directors.

Name Approval

A minimum of one and a maximum of six suggested company names must be submitted to the MCA. Subject to availability, naming standards as well as the MCA processing period, name approval can be obtained in 5 to 7 working days.

Company Registration

Registration documents along with an application for registration can be submitted to MCA. Subject to the application processing time, MCA will usually approve the application of company registration in 5 to 7 working days.


Minimum Requirements for Private Limited Company Registration

  • A unique name
  • A minimum of two shareholders
  • A minimum of two directors
  • Any amount of capital
  • Requisite documents
  • MOA & AOA

Concerns Related to a Private Limited Company

  • The statutory compliances are high.
  • The directors have to be involved in decision making.
  • Transfer of shares to others cannot be made without an agreement.

Things to be considered while Choosing a Name for your Private Limited Company

Selecting the name of the business is an important aspect. It is the very first impression for the vendors, the stakeholders and the buyers. Therefore, it needs to be in relation of the nature of the business. It must be relevant and attractive. Here are some of the following aspects which we should keep in mind while naming the business -

  • The name of the company should be concise and short. People should be able to pronounce it easily and recollect the name as early as they read it or hear it.
  • It needs to be the face of the company.
  • The company name should be unique. It should not be identical or similar to an already existing business or a trademark.
  • It is best to avoid the name of a person (be the owner or a shareholder) to be used in the company’s name. This avoids the need to rename the company in the event of his or her exit.
  • The company name needs to be ended with the suffix "Private Ltd".
  • The company name should not be contradictory to the law. It should not be abusive and against the practices, beliefs and values of any particular group of people.

How Finacbooks help in Private Limited Company Registration?

Finacbooks is a leading Indian portal providing accounting, finance & taxation services to small businesses. We are having more than 10 years of experience in helping individuals providing Private Limited Company registration at a least possible price. We will guide you through the entire process of Pvt Ltd Company registration. To avail the best deals on Private Limited company registration, kindly call us at 8800221252 or you can also e-mail us at info@finacbooks.com

Pvt Ltd Company Registration FAQs

There is no need to present at all. A new business registration is a complete online process and all written documents are filed electronically. You have to send us scanned documents of your all necessary forms and documents.
If your all files are in order, it is going to take no longer than fifteen days. Nevertheless, it depends on the work of the registrar.
Digital Signature Certificate is provided in a token form and it is given by Certified Authorities. Any form submitted to register a Private Limited Company online shall be published after affixing the DSC of an Applicant. The directors of the company should obtain DSC (Digital signature certificate) as absence of DSC can cause site related problems to the website visitors and subscribers.
Director Identification Number is a unique number issued by the Ministry of Corporate Affairs to an existing or a proposed director of a company which is incorporated.

The Registrar of Companies (ROC) expects that India should follow few naming guidelines. The more closely the guidelines are followed, the greater the chances of your name approval. Few guidelines for name approval are as follows -

Blacklist: Generic names, adjectives and abbreviations will be rejected. For ex- Abbreviations like ABP or CNN will be rejected. The terms like bank, exchange, stock exchange will also be rejected unless it is authorized by SEBI or RBI.

No Common Trademark: Trademark should not be common. The registered trademark should not be similar to any other trademark displayed on the Intellectual property website of India. If found similar, you will get the name approval only when you get an NOC Objection Certificate (NOC) from its owner - authorizing you to make use of it.

Descriptive Component: The company name should convey the details about your business you are doing or you want to do. For ex - In Eli Research Private Limited, the word' Research' conveys that the company is into a research business. If your business is different, you cannot use the word “Research” in your business name as it will surely get rejected.

All directors should provide a copy of identity proof and address proof. In addition to it, a copy of PAN Card is also required. No-objection Certificate (NOC) should also be submitted by the proprietor of the registered business premises.
Yes, private limited company has a continued existence till they are achieving the annual compliances. When they don’t comply with the conditions, it is going to be dormant and lastly it struck out from the register altogether.
The expense of managing a private limited business is usually split into 4 categories: expense of establishing a private limited business, price of accounting and auditing, cost of miscellaneous expenses and compliance. You have to spend minimum Rs.40000 in every cost category.
Yes, a private limited company must employ an auditor. An auditor should be appointed within thirty days of incorporation. Compliances are crucial and should be followed by private limited company as non-compliance may cause company a penalty of lakhs of rupees and sometimes may result in blacklisting of directors.
Memorandum of association is a legal document which specifies the scope of business activities of the company and defines its relationship with the shareholders whereas articles of association is a document which specifies the company’s rules and regulations for its operations as well as defines the company purpose. The document also explains how the tasks will be accomplished in an organization including the appointment of directors and handling of financial records.
A minimum of 2 directors are required to run a private limited company. The maximum number of peoples can be 200. One director can start a business by registering the company as One Person Company (OPC) only.
Any individual/organization can become a part of a private limited company including foreigners, NRI etc. The person should be 18+ above and must hold a valid PAN card.
You can use any amount of capital to form a private limited company.
Yes, a salaried person can become a director in private limited company, one person company (OPC) or limited liability partnership (LLP). In this case, one needs to look at the employment agreement, if it enables such provisions.
Unfortunately no, one cannot transform an LLP into a Private Limited Company. The LLP Act, 2008 and the Companies Act, 2013, both are not having any provision for transforming the LLP into a private limited company. If one desires to transform it, he or she has to purchase a brand new Private Limited Company with exactly the same name and LLP Company has to issue a no objection certification (NOC) for it.
FinacBooks can incorporate a Private Limited Company in 15 to 25 days. The time taken also depends upon on the relevant documents provided, speed and the granting of approvals from the authorities. To guarantee a speedy registration, kindly choose a unique title as well as make sure you have all the necessary documents with you before starting the registration process.
Yes, NRIs as well as Foreign Nationals can easily become directors in a Private Limited Company but they need to qualify and obtain a Director Identification number (DIN) from the Registrar of companies in India. 2 directors are needed to form a private limited company. If one is an NRI, then the other must be an Indian.
A private limited company is a separate legal entity like any other person incorporated under the Act. It separates the actions of the entity from its members. Therefore, it is separate at law from its shareholders, directors, promoters etc.
Yes, One can register a private limited company on their residential address. One has to submit the electricity copy of the same address as evidence.
An existing private limited company can be transformed into a LLP under following circumstances -
  1. If the company have no security interest in its assets at the time of application.
  2. When there are no partners of the LLP and the shareholders of the company are the only partners.
In order to register a section 8 company, Firstly, the applicant is needed to file form INC 1 for title availability. After that, When the title is approved, another form INC 12 is to be filed by the company to obtain a license. After getting the license number, the applicant is able to move forward and add a business by filing e forms INC-7 or SPICe (in case numbers of members are more than seven).
100% Foreign Direct Investment is permitted in India in most of the industries under automatic route. Under Automatic Route, You don’t require any approval from RBI or government of India. You will find some of the industries which are listed under govt. of india and where investment approval is needed from RBI.
To register a Part 1 Company, the applicant is needed to file Form INC 1 for the title availability. After the title is approved, the applicant will have to file Form No. URC 1 alongside e-forms INC 7, DIR-12 and INC-22.
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