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 ltd 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
- Private Limited Company is a separate legal identity
- Members of the Private Limited Company has limited liability
- 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.
- Greater chances of investments and capital contribution
- Higher chances of getting a bank loan with ease
List of Documents Required for Private Limited Company Incorporation
Documents of Partners
- Identity Proof
- Address Proof
- Passport (in case of NRIs or foreign nationals)
Documents of Private Limited Company
- 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
- DSC (Digital Signature Certificate) of the proposed directors
- DIN (Directors Identification Number)of the proposed director
- Memorandum of Association (MOA)
- Articles of Association (AOA)
Why choose Masters India Services?
- We provide regular updates about the Private Limited Company Incorporation
- We have active client support that assists you through the Private Limited Company Incorporation process
- No physical visit to the office completely online process
- Dedicated expert to process your end to end query
- Obtain Private Limited Company Incorporation certificate within 15-20 business days
Q1. Can I use my residential property as a registered office?
Ans. Yes, a person can use the residential property as a registered office but it shall be noted that you cannot use vacant land or building as your registered office.
Q2. I want to know whether the NRIs and foreign nationals/entities can register a private limited company in India?
Ans. Yes, foreign nationals/entities and NRIs can register a private limited company as per the norms set by the RBI for FDI. However, to incorporate a private limited company it is mandatory to have one Indian national in the Board of Directors.
Q3. What is the authorized capital and paid-up capital of the private limited company?
Ans. Authorized capital is the maximum amount of money a company can raise through the issue of shares. On the contrary, paid-up capital is the amount of money the company has received by the shareholder from the issue of shares. In addition to this, a company can raise the limit of authorized capital at any time after the incorporation.
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