Private Limited Company Registration in India

What are the Characteristics of a Private Limited Company?

Key Characteristics of a Private Limited Company:

• Limited Liability Protection – Shareholders’ liability is limited to the number of shares they hold.
• Separate Legal Entity – A company has its own identity, distinct from its owners.
• Minimum 2 Shareholders & Directors – At least two individuals must act as shareholders and directors. (A director and shareholder can be the same person.)
• Maximum 200 Shareholders – A Pvt Ltd Company cannot have more than 200 shareholders.
• No Public Share Offering – The company cannot raise funds by issuing shares to the public.
• Mandatory Compliance – Annual filings, audits, and regulatory adherence are required.

Types of Private Limited Companies in India

There are three types of Private Limited Companies:

1. Company Limited by Shares

• The liability of each shareholder is limited to the amount unpaid on their shares.

2. Company Limited by Guarantee

• Members guarantee a specific amount to be paid in case of company closure.

3. Unlimited Company

• No limit on member liability; personal assets may be used to settle debts.

Benefits of Pvt Ltd Company Registration

Many entrepreneurs prefer Private Limited Company Registration over other business structures because of the following benefits:

1. Limited Liability Protection: Shareholders are only liable for the amount they have invested.

2. Separate Legal Entity: The company is distinct from its owners and can enter contracts, own property, and sue or be sued in its own name.

3. Ease of Raising Funds: Investors prefer investing in Pvt Ltd Companies as they offer more credibility and structured governance.

4. Perpetual Succession: The company continues to exist even if a shareholder or director exits.

5. Better Credibility: Pvt Ltd Companies gain trust among customers, suppliers, and financial institutions.

Documents Required for Pvt Ltd Company Registration

The following are the documents required for Pvt Ltd Company Registration:

For Directors and Shareholders:

• PAN Card
• Aadhaar Card
• Passport-size photograph
• Address Proof (Bank Statement/Utility Bill)

For Registered Office:

• Rental Agreement or Sale Deed
• NOC from the property owner
• Utility Bill (Electricity/Water/Gas)

Process for Private Limited Company Registration

Registering a Pvt Ltd Company involves five key steps:

Step 1: Obtain a Digital Signature Certificate (DSC)

• Why? The entire Company Registration process is online, and a DSC is required for signing electronic documents.
• How to Obtain? Apply through government-approved certifying agencies.
• Documents Required: Passport-size photo, PAN, Aadhaar, email, and mobile number.

Step 2: Obtain a Director Identification Number (DIN)

• What is DIN? It is a unique identification number for directors.
• How to Apply? DIN is obtained through the SPICe+ form during registration.

Step 3: Name Reservation (SPICe+ Part A)

• Guidelines for Company Name:
• The name should be unique.
• It must end with “Private Limited.”
• Cannot be identical to an existing company or trademark.
• Approval Process: Submit SPICe+ Part A form to the MCA.

Step 4: File Incorporation Forms (SPICe+ Part B, MoA, AoA)

• Memorandum of Association (MoA): Defines business objectives.
• Articles of Association (AoA): Governs internal management.
• SPICe+ Part B: Submit details of directors, shareholders, and registered office address.

Step 5: Certificate of Incorporation Issued by MCA

Once all documents are verified, MCA issues the Certificate of Incorporation (CoI), along with Company Identification Number (CIN), PAN, and TAN.

Post-Registration Compliance for Pvt Ltd Companies

Once a Pvt Ltd Company is registered, it must comply with various regulatory requirements:

1. Appointment of Auditor – Within 30 days of incorporation.
2. Income Tax Filings – Annual ITR filings are mandatory.
3. ROC Compliance – Filing of MCA annual returns (AOC-4 and MGT-7).
4. GST Registration – If applicable, based on turnover.
5. Board Meetings – Conduct at least four board meetings per year.
6. Accounting & Bookkeeping – Maintain proper financial records.

Why Choose Compliance Calendar LLP for Pvt Ltd Company Registration?

Compliance Calendar LLP specializes in hassle-free Company Registration in India. Our experts handle everything from documentation to final approval.

Our Services Include

• Name Reservation Assistance
• DSC & DIN Application Processing
• Drafting of MoA & AoA
• Filing of SPICe+ Form
• Obtaining GST, EPFO & ESIC and EPFO Registration
• Post-Incorporation Compliance Guidance

Why Us?

• 100% Online Registration Process
• Affordable Pricing
• Expert Consultation
• End-to-End Compliance Support

Private Limited Company Registration is a vital step toward building a successful business in India. With benefits like limited liability, ease of fundraising, and credibility, it remains the most preferred choice for entrepreneurs.

If you are looking to register a Pvt Ltd Company, trust Compliance Calendar LLP to make the process seamless and stress-free. Get in touch with us today and start your journey towards business success!