Private Limited Company Incorporation in India

Know About Private Limited Company

In India, Private Limited Company is the most popular type of body corporate. Companies Act 2013 governs the incorporation of the private limited company. The basic requirement to incorporate is that there should be a minimum of 2 shareholders and 2 directors. Moreover, MCA has recently simplified the procedure of private limited company incorporation in India.

Steps Involved in Private Limited Company Incorporation

• Step 1: Obtain DSC
• Step 2: Apply for DIN
• Step 3: Application for name availability and approval
• Step 4: Furnishing MOA (Memorandum of Association) and AOA (Articles of Association)
• Step 5: Applying for PAN and TAN
• Step 6: Private Limited Company Incorporation certificate issued by registrar of companies (ROC) along with PAN and TAN

Advantages of Private Limited Company

1. Private Limited Company is a separate legal identity
2. Members of the Private Limited Company has limited liability
3. To incorporate the private limited company there is no minimum paid-up share capital required. However, a company must have 1 Lakh INR authorized capital.
4. Greater chances of investments and capital contribution
5. Higher chances of getting a bank loan with ease

List of Documents Required for Private Limited Company Incorporation

Documents of Partners

1. Identity Proof
2. Address Proof
3. Photograph
4. Passport (in case of NRIs or foreign nationals)

Documents of Private Limited Company

1. Address proof of registered office:

• Own office – Copy of electricity bill/landline bill/ water bill/ municipal khata copy/ property tax receipt
• Rented office – Rent agreement with an electricity bill of owner and No objection certificate (NOC) from the owner

1. DSC (Digital Signature Certificate) of the proposed directors
2. DIN (Directors Identification Number)of the proposed director
3. Memorandum of Association (MOA)
4. Articles of Association (AOA)