Private Limited Company

Register Private Limited Company (Pvt Ltd) India

Rs. 8,701/- (inclusive of all taxes & fees)

Important Points

- Private Limited Company in 10 to 15 days.

- Completely online service - No physical presence required.

- No minimum capital requirement.


What is Private limited company?

Private Limited Company registration is the most popular legal structure option for businesses in India. A private limited company can have a minimum of two members and a maximum of fifty members. The directors of a private limited company have limited liability to creditors. In a case of default, banks/creditors can only sell company’s assets but not personal assets of directors. If you want to start a company in India then make sure your company is registered as Company Registration should be your first priority. It is very important to register your company as a registered company have multiple advantages from easy to register to easy to dissolve.

Start-ups and growing companies prefer private limited company as it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to pull in top talent.

Private Limited Company Benefits

  • It is flexible and has limited liability
  • Greater capital contribution and greater stability
  • Possibility to grow big and expand


Documents required for Private Company Registration

For Directors/Shareholders:-
  • Copy of PAN Card
  • Aadhar Card
  • Address Proof (Bank Statement, Mobile bill, Telephone bill)
  • Passport Size Photo
For Registered Office:-
  • Ownership Proof (Electricity bill etc)
  • Utility Bill (Gas bill, Electricity bill)
  • NOC (Download format)

5 Steps For Company Registration

  • 1. Application of DSC & DPIN :
  • First of all, the partners have to apply for Digital signature and DPIN. Digital signature is an online signature used for filing and DPIN refer to Directors PIN number issued by MCA. If the directors already have DSC and DPIN, then this step can be skipped.

  • 2. Name approval :
  • You need to provide 3 different options for your company name to MCA of which one will be selected. Names provided should ideally be unique and suggestive of company business.

  • 3. MOA & AOA submission :
  • Once name is approved, one needs to draft Memorandum of association and Articles of Associate. Both MOA and AOA are filed with the MCA with the subscription statement and

  • 4. Get incorporation certificate :
  • It typically takes 15- 25 days to form a Private limited company and get the incorporation certificate. Incorporation certification is a proof that company has been created. It also includes your CIN number.

  • 5. Apply for PAN, TAN and Bank account :
  • Then you need to apply for PAN and TAN. PAN and TAN are received in 7 working days. Post this, you can submit the Incorporation certificate, MOA, AOA and PAN with a bank to open your bank account.


Time & Cost for Private Company Registration

The Total Cost Breakup

Items

Qty

Price

.Digital Signature Certificate (DSC) 2 999
.Director Identification Number (DIN) 2 999
.Name Approval 1 1,000
.MOA, AOA and Incorporation Fee - Nil
.Stamp Duty of the Respective State* - 1,400/-
.PAN and Tan Application - 200/-
.INC 22 - 300
.CA Certification - 600
.Professional Fee - 2,700
.Goods and Service Tax (GST) - 503

Total Private Ltd. Registration Cost in India 8.701

Note: Stamp duty Extra for States: Punjab, Kerala and Madhya Pradesh.


How to choose Company name for Pvt. Company Registration?

Company name is the most important part of registration & hence should be selected with utmost care. Here is the name format


ABC (Prefix) + Technologies (Suffix) + Private Limited (End)

ABC - Prefix:

The prefix should reflect your brand name and should be unique. I.e. no it should not match with any existing company or trademark. The example of prefix i.e. your first word is TATA, Reliance, Hubco etc.

Technologies - Suffix:

It is regarded as the second word of your company name. This should reflect your main proposed business. E.g., if you are into technology company, then write technology, for steel business, you can use TATA Steel Ltd.

Private Limited - End:

These are the ending words which are mandated by law. Every private company shall end his name with Private Limited. The words indicate that Private meaning no public is involved and limited means capital is limited.


Further some other conditions of rule 8 of Companies (Incorporation) Rule, 2014 needs to comply with.

Mandatory Requirements for Private Company Registration

Now a days, Private company registration has been eased a lot by the Ministry of Corporate Affairs (MCA), further initiatives like startup India has also boosted the company registrations all over India. Further, company allows you to raise funding from the Angel investors, Venture Capital etc. However, to form a private limited company following are the mandatory requirements:

Minimum two people are required to start a private limited company in India.

Whatever is the capital amount of your company, you should invest the same within 2 months of incorporation.

Have a basic understanding of the compliance to avoid delays and penalties.

Further, this type of loan cannot exceed 50% of the total loan amount.


Loan against FDR and Deposits:
  • Nidhi can advance loan against FDR and also even against the deposits kept by it. Further, this type of loan is also subject to certain restrictions:

The repayment period under this loan shall not exceed the period of Fixed Deposit.

The maximum finance under this case shall be up to the value of Fixed Deposit under Nidhi Company.

  • Loan Against NSC / Bonds:

    This type of loan are very rare but Nidhi company can advance loan against these securities as well.
  • Unsecured loan by Nidhi Company:

    This type of loan is completely prohibited by Nidhi Company.
  • Vehicle (Car Loan) Finance:

    This type of loan is also not allowed under Nidhi Company. Vehicle finance restricted to Non-Banking Financial Companies (NBFC) in India.