Private Limited Company is the most prevalent and popular type of corporate legal entity in India. The Ministry of Corporate Affairs governs private limited company registration in India. Companies are incorporated and regulated under the Companies Act, 2013 and the Companies Incorporation Rules, 2014. IndiaFilings can help you with company registration across India at a very affordable price point.
To register a private limited company, a minimum of two persons to act as Directors and shareholders are required. The shareholders of a private limited company can be a corporate entity or a natural person. Director can only be a living person with one Director being a resident and Indian Citizen. A person is designated as a resident if he/she spends over 186 days in India.
There are no restrictions on foreign companies or foreign nationals being Directors or shareholders of a private limited company. As, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and Shareholders of a Company with Foreign Direct Investment, incorporating a company is the preferred choice of entry to India for foreign promoters.
Equity Raise: A company can raise equity capital from persons or entities interested in becoming a shareholder. Hence, a private limited company is a must for Entrepreneurs looking to raise money from angel investors, venture capital firms, private equity firms and hedge funds.
Limited Liability Protection: A private limited company provides limited liability protection to its shareholders. In case of any unforeseen liabilities are created, it would be limited to the company and would not impact the shareholders.
Separate Legal Entity: A private limited company is legally recognised as a separate entity. Hence, a company can have its PAN, bank accounts, licenses, approvals, contracts, assets and liabilities in its unique name.
Perpetual Existence: A company has perpetual existence and never ends without reason. For a company to lose its existence, it has to be wound-up by the Promoters or be wound-up by the Government. Hence, a company can only be wound up for reasons like non-compliance or failure to comply with rules and regulations.
Easy Transferability: As the ownership of a company is represented by shares - the ownership of a company can be transferred to any other legal entity or person in India or abroad easily - in part or whole. Further, since the shareholders control the Board of Directors, the Directors can also be replaced easily by shareholders to ensure business continuity easily at all times.
The documents required for company registration can be grouped under three heads:
Documents for Directors: Two identity proof documents like Aadhaar, PAN, Passport, Drivers License or any other Government-issued identity document would be required. Indian nationals are mandatorily required to provide PAN. Foreign nationals are mandatorily required to submit attested or apostille passport copy.
In addition to the identity proof, the Directors must submit residence proof that is less than three months old. Proof of residence documents includes bank statements, electricity bill, water bill, gas bill and telephone bill.
Documents for Registered Office: Companies registered in India must mandatorily maintain a registered office within India. In the case of leased property, the copy of lease deed for the registered office premises along with a NOC from Landlord and EB bill/property tax receipt/water bill copy of the registered office property. In case of own property, copy of sale deed along with the EB bill/property tax receipt/water bill copy of the registered office property.
Documents for Corporate Entities: In case one of the shareholder or subscriber to the MOA and AOA is a Corporate Entity (Company, LLP, etc.,) then Certificate of Incorporation of the Body Corporate must be attached along with the resolution passed by the Body Corporate to subscribe to the shares of the company under incorporation.
IndiaFilings can incorporate a company in less than ten days - subject to Government processing times and availability of all documents. On collecting the necessary information and documents digitally, the process for company registration begins with obtaining digital signatures for the proposed Directors and Shareholders. Your IndiaFilings Engagement Manager will submit the digital signature application and generate a link to complete video eKYC verification. The applicant would then have to complete a short selfie video and verify OTP to authenticate the application. Upon approval of the application, the digital signature will be issued on the same day.
Parallel to the digital signature process, your Engagement Manager will also submit a name approval request to the Ministry of Corporate Affairs for approval. Please ensure that you provide multiple options for the company name that are in line with the Companies Naming Regulations in India to ensure quick approval. The Government typically provides name approval within 48 hours in India.
On obtaining name approval, we will prepare all the legal documents that must be signed by the Directors and Shareholders on the same day. Once you have verified the documents and signed off, we will apply for incorporation with the MCA on the same day. The MCA will provide incorporation approval in about 48 - 72 hours during business days. If the incorporation approval is approved, the Government will issue the incorporation certificate, PAN for the company and the TAN.
IndiaFilings has exclusive relationships with top Banks in India wherein we can help you open a zero-balance Current Account digitally through our platform. Based on your choice of Bank, we can forward the request digitally to the Bank for opening the company’s current account from the comfort of your home in any city or town in India. Note: Bank account opening would be subject to the bank's process and products offered by the Bank from time to time.
All companies registered in India are required to maintain compliance under various regulations. Failure to maintain compliance can lead to penalty or disqualification of Directors. IndiaFilings can help you with accounting and maintaining of statutory compliances for the company at a very affordable price point.
Some of the important compliances for companies registered in India include, but not limited to:
Appointment of Statutory Auditor: The Board of Directors must appoint a practising Chartered Accountant within 30 days of incorporation.
Commencement of Business: Within 180 days of incorporation, the capital mentioned in the MOA [Memorandum of Association] must be deposited in a bank and commencement certificate must be obtained from MCA.
Income Tax Filing: Companies registered in India must file income tax return each year in Form ITR-6.
Annual Return: Companies registered in India must file MCA annual return each year in Form AOC-4 and MGT-7.
DIN KYC: DIN KYC procedure must be completed each year for the Directors of the company.
Process for company registration as announced by the MCA for the year 2018. The MCA has simplified the company incorporation process by introducing Reserve Unique Name (RUN) form for simplifying name approval process and reducing incorporation fee for private limited companies.
List of documents required for company registration in India. Documents required for Indian or Foreign Director, registered office and shareholder in company.
Difference between authorised capital vs paid up capital explained in detail with an illustration. Visit IndiaFilings to know more about authorised capital.
The Ministry of Corporate Affairs has re-introduced the concept of commencement of business certificate in 2019. All companies registered are now required to obtain commencement of business certificate before commencing any business or exercising any borrowing powers.
GST registration procedure, eligibility and documents required. Entities with an annual revenue of more than Rs.20 lakhs must obtain GST registration. Complete your GST registration online with expert help from IndiaFilings and obtain your GSTIN in less than a week from the comfort of your home.
File GST return online through IndiaFilings with GST Expert Support. You can prepare and file GSTR-1, GSTR-2, GSTR-3 and GSTR-4 return online through IndiaFilings. In addition to filing GST returns, you can also issue GST invoices and record purchases on LEDGERS to automatically file GST returns.
Online trademark registration, trademark search, documentation and Expert help for TM filing. Easily submit your trademark application for just Rs.5988 in less than a day from the comfort of your home. IndiaFilings provides a range of trademark services from trademark filing to objection handling.
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* Incorporations from Maharashtra state will also receive complimentary Professional Tax Registration.
Open a new or link your existing ICICI bank current account with LEDGERS for seamless bank account reconciliation, account balance check and sending of payments through NEFT / RTGS / IMPS.
Open a new or link your existing DBS bank business account with LEDGERS for seamless bank account reconciliation, account balance check and sending of payments through NEFT / RTGS / IMPS.
Opening a current account for a private limited company is easier when compared to opening of current account for a sole proprietorship firm as a company is a registered legal entity – recognized by law. Therefore, once a company is incorporated, a bank account can be opened in the name of a company with the incorporation certificate of the company and identity/address proof of the Directors.
Limited liability is the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a private limited company the liability of the shareholders in respect of the company’s liabilities is limited. In other words, the liability of the shareholders of a company is limited only to the value of shares taken up by them.
Authorised capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid up capital is the amount of shares issued by the company to shareholders. Authorised capital can be increased after incorporation at anytime to issue additional shares to the shareholders.
To register a private limited company, a minimum of two people are required to act as directors and shareholders. The directors must be natural persons, while the shareholders can be natural persons or corporate entities. In addition, a registered office address in India is also required for company registration.
On average, private limited companies are registered by IndiaFilings in 10 to 15 days. The processing time would vary on a case to case basis based on the time taken by our clients to submit the necessary documents and government processing time.
Yes, NRIs, foreign nationals and foreign entities can register a company and invest in India, subject to the Foreign Direct Investment norms set by the RBI. However, incorporation rules in India require for one Indian national to be a part of the company on the Board of Directors.
Any person over the age of 18 years can become a director in a company. Also, there are no conditions on residency or citizenship. Hence, NRIs and Foreign Nationals can easily start and manage a private limited company in India.
Yes, every company registered in India must have a registered office where all official communication is sent by the MCA, governmental agencies, financial institutions, etc., The registered office of a company can be in any state of India.
Use the IndiaFilings company name availability search functionality to search for available company names in India. It is important to note that IndiaFilings would just provide available choices, based on identical names already registered. However, the government could still reject a name based on test for similarity.
Company incorporation certificate is provided as a pdf document by the Ministry of Corporate Affairs (MCA). MCA does not provide hard or printed copy of incorporation certificate.