Private Limited Company — Incorporation

Overview

Overview of Private Limited Company

A Private Limited Company is a privately maintained small business entity. The liability of the members of a Private Limited Company is limited to the amount of shares respectively held by them. Shares of Private Limited Company cannot be publicly traded. All the businesses in India including Private Limited Companies are regulated by the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013.

Advantages of a Private Limited Company

Limited Liability Protection: The personal assets of the founders and directors are protected. In case of financial default, the liability is limited only to the amount invested in the company's share capital.
Separate Legal Entity: A Private Limited Company is a juristic person capable of owning property, incurring debts, and entering into contracts in its own name.
Ease of Raising Funds: Preferred by Venture Capitalists (VCs), Angel Investors, and Private Equity (PE) funds since it allows for the issuance of equity shares.
Uninterrupted Existence (Perpetual Succession): The company continues to exist even if directors or shareholders die, resign, or leave. It can only be dissolved through a formal legal process.
High Credibility: Registered companies have higher trust among vendors, employees, banks, and customers compared to unregistered businesses.

Minimum Requirements for Registration

Minimum 2 Directors (at least one must be a Resident of India).
Minimum 2 Shareholders (Directors can also be shareholders).
No minimum capital requirement (you can start with ₹1,000 or ₹1 Lakh).
A registered office address in India (can be a residential or commercial property).

Registration Process

Name Approval (RUN/SPICe+ Part A): We apply for a unique company name that complies with MCA naming guidelines.
Digital Signature Certificate (DSC): We obtain DSCs for all proposed directors to sign electronic forms.
Drafting MOA & AOA: The Memorandum of Association and Articles of Association are drafted by our experts outlining the company's objectives and rules.
Filing SPICe+ Form: We submit the final incorporation forms along with KYC and address proofs to the ROC.
Certificate of Incorporation: Upon approval, the ROC issues the Certificate of Incorporation along with the company's PAN and TAN.

Documents Required

For Directors & Shareholders (Indian Nationals):

PAN Card (Mandatory for all Indian nationals)
Identity Proof: Aadhaar Card, Passport, or Voter ID
Address Proof: Latest Bank Statement, Telephone Bill, Mobile Bill, or Electricity Bill (Not older than 2 months)
Photograph: Latest Passport-size colored photograph

For Foreign Nationals (if applicable):

Passport: Notarized & Apostilled
Address Proof: Notarized & Apostilled (Not older than 2 months)

For Registered Office:

Utility Bill: Latest Electricity Bill, Gas Bill, or Property Tax Receipt of the premises
NOC: No Objection Certificate from the owner of the property
Rent Agreement: If the premises are rented (Notarized)