Private Limited Company

A Private Limited Company is a type of business structure registered to give a separate legal existence to the business apart from its directors and shareholders. This means that a company continues to exist even after the death of any member. A private company in India can consist of a maximum of 200 members at a time. In a Private Limited Company, the shareholders are considered to be the owners of the company and the directors are responsible for the everyday operations of the business. This ensures that the personal assets of the shareholders and directors are separate from that of the company.

Private Limited Company registration is regulated by the Companies Act, 2013 and the Ministry of Corporate Affairs acts as the regulatory body for registration. To register a Private Limited Company in India, there must be at least 2 directors and 2 shareholders. The most important feature of a Private Limited Company is that it is the most favoured form of business structure by investors as it limits the liability of the investors only to the investment they have made in the company.

Register Your Private Limited Company

Documents for Private Limited Company registration

  1. PAN card- All Directors
  2. ID Proof (Aadhar card/DL/Voter ID) of all Directors
  3. Permanent address Proof (Bank Passbook-front page/Latest utility bill)- All Directors
  4. Address Proof of proposed Registered Office of company
    1. If taken on rent then NOC with the utility bill from the owner
    2. If not taken on rent or owned by any other entity then NOC signed by an owner
    3. If owned by Director then sale deed with an electricity bill
  5. Passport size photograph of all directors
  6. Main objects of the proposed company in detail
  7. Four names of the proposed company as per preference
  8. Significance of names of the proposed company
  9. Shareholding proportion
  10. Signed forms (Format provided)

Process to incorporate a Private Limited Company

The process of Private Limited Company registration involves obtaining the Digital Signature Certificate (DSC) & Director Identification Number (DIN), obtaining approval for name, creating and filing of documents with RoC and filing of an application for PAN & TAN. It takes around 15-20 days to complete all the legal formalities to register a Private Limited Company in India. This time period is subject to the time taken by government authorities to process the application.

FAQs

How many people can start a Private Limited Company?
To incorporate a PLC, there must be at least 2 directors and 2 shareholders. The maximum number of directors in a Private Limited Company is 15 and maximum number of shareholders are 200.
How much capital is required to start a Private Company?
It does not require any minimum amount to be infused as capital. There is no legal requisite to present the proof of capital invested at the time of Private Limited Company registration.
What is a Digital Signature Certificate (DSC)?
A Digital Signature Certificate (DSC) is the digital equivalent (that is electronic format) of physical or paper certificates. Like physical documents are signed manually, electronic documents, for example e-forms are required to be signed digitally using a Digital Signature Certificate.
What is Director Identification Number (DIN)?
A Director Identification Number (DIN) is a unique identification number given to an existing or a potential Director of a company.
Can NRIs / Foreign Nationals be a Director?
Yes, a NRI or Foreign National can be a Director in a this form of company after obtaining Director Identification Number.
What is Memorandum of Association (MoA)?
A Memorandum of Association (MOA) is a legal document prepared in the formation and registration process of a company to define its relationship with shareholders.
What is Articles of Association (AoA)?
The Articles of Association is a document that contains the purpose of the company as well as the duties and responsibilities of its members defined and recorded clearly. It is an important document which needs to be filed with the Registrar of Companies.
What is TAN?
Tax Deduction and Collection Account Number (TAN) is a 10 digit alphanumeric number issued to persons who are required to deduct or collect tax on payments made by them under the Indian Income Tax Act, 1961.
What if I already have a DIN. Do I need to get a new one?
No, DIN is issued only once by the Central Government.
Do I need to be physically present for PLC registration?
No, the entire process is completely online. All the documents can be scanned and sent through mail.