Private Limited Company Registration Online in India

Private Limited Company Registration formally incorporates your business under the Companies Act, 2013. It separates your assets from business risks and helps attract investors.

This type of company is ideal for startups, growing businesses, and anyone planning to raise capital. A Private Limited Company must have at least two directors and two shareholders to begin.

Objectives of Registering a Private Limited Company

• Establish Legal Personality: Secure a recognized business identity to build credibility with clients and lenders.
• Protect Personal Assets: Shield founders’ wealth from company debts and liabilities.
• Access Funding: Facilitate investment by issuing equity shares to angel investors, VCs, or strategic partners.
• Ensure Continuity: Maintain uninterrupted operations, even if shareholders or directors change.
• Qualify for Government Benefits: Get tax incentives, grants, and schemes available to registered companies.

Laws Governing Private Limited Company Registration in India

Private limited company registration in India is primarily governed by the following laws and regulations:

1. Companies Act, 2013: The primary legislation governing all aspects of company formation, operation, dissolution, and corporate governance standards.
2. Income Tax Act, 1961: Regulates the taxation aspects of private limited companies, including corporate tax rates, deductions, and filing obligations.
3. Goods and Services Tax (GST) Laws: Mandatory GST registration is required for companies crossing specified turnover thresholds.
4. Foreign Exchange Management Act (FEMA): Controls foreign investment in Indian companies and regulates overseas operations.
5. Securities and Exchange Board of India (SEBI) Regulations: Governs securities issuance and trading, particularly relevant for companies planning to raise capital.
6. Information Technology Act, 2000: Applies to companies engaging in electronic commerce and digital business activities.

Regulatory Authorities

To establish and operate your company legally, the key regulatory authorities you will interact with include:

• Registrar of Companies (ROC): Under the Ministry of Corporate Affairs, the ROC processes your SPICe + application, and issues the Certificate of Incorporation.
• Income Tax Department: Manages corporate tax filings.
• Reserve Bank of India (RBI) (if you have foreign investment): It regulates Foreign Direct Investment approvals, external commercial borrowings, and repatriation of dividends under FEMA.

There are three main types of Private Limited Companies in India. The difference lies in how much the members are responsible for if the company faces losses or shuts down.

1. Company Limited by Shares

In this type, the liability of each shareholder is limited to the unpaid amount on their shares. If the shares are fully paid, there’s no further liability.

Example: Reliance Industries Limited shareholders are only responsible for any unpaid share amount.

2. Company Limited by Guarantee

Members agree to pay a certain amount if the company closes down. This amount is mentioned in the Memorandum of Association (MOA). It is usually used for non-profit organizations and defines the foundation of a company. The MOA outlines the purpose, scope, and structure of the company and acts as its charter.

On the other hand, an Articles of Association (AOA) defines the internal rules, regulations, and management structure of a company.

Example: Indian Olympic Association members guarantee a fixed sum only if the company is dissolved.

3. Unlimited Company

Members have no limit on their liability. If the company cannot pay its debts, members may have to use their funds. Still, the company has its own legal identity, so members are not sued directly.

Example: Some family-owned businesses choose this structure for more control and privacy.

To register a private limited company in India, the following eligibility criteria must be met:

• A company must have at least two directors to be eligible for registration.
• Out of all the directors, at least one must be an Indian resident, meaning they must have stayed in India for 182 days or more in the previous financial year.
• A Private Limited Company can have up to 15 directors by default. However, this number can be increased beyond 15 by passing a special resolution with shareholder approval.
• At least two shareholders are required to incorporate the company. The same individuals can also act as directors.
• The total number of shareholders is limited to 200, excluding current and former employees holding shares under an employee stock option or similar plan.
• Registered Office: The company must have a physical registered office in India. This address will be used for all official government communication and must be supported by address proof and a No Objection Certificate (NOC) from the property owner if rented.
• There is no minimum paid-up capital requirement. However, the company must declare its authorized share capital, for which a government fee is applicable during registration.
• Every director must obtain a Director Identification Number (DIN), which is issued by the Ministry of Corporate Affairs (MCA).
• All proposed directors are required to obtain a Class 3 Digital Signature Certificate (DSC). It is used for digitally signing incorporation documents during the registration process.

Documents Required for Private Limited Company Registration:

For Directors and Shareholders

• PAN Card
• Aadhar Card (for Indian nationals)
• Recent passport-sized photographs
• Residential Utility bills as an address proof (not older than two months)
• Personal Bank statement (not older than two months)
• Passport copy (for foreign nationals/NRIs)
• Driver's license or Voter ID card
• The mobile number linked with Aadhaar
• Email ID
• Specimen signature

For Foreign Directors/Shareholders (Additional)

• Copy of passport with visa details
• Address proof from the home country
• Bank statement from the home country
• Notarized and apostilled documents as per country requirements

For Registered Office

• Proof of registered office address (utility bill, property tax receipt)
• NOC from the property owner if the premises are rented/leased
• Rent/lease agreement copy
• Recent electricity bill or property tax receipt

Company-Related Documents

• Proposed company name options (3-4 alternatives)
• Description of business activities and objectives
• Details of authorized and paid-up capital
• Shareholding pattern
• Draft Memorandum of Association (MOA)
• Draft Articles of Association (AOA)
• Resolution appointing the first directors

Document Formats for Pvt Ltd Company Registration (Download PDFs)

Follow this process to learn how to register a company in India as a private limited quickly and efficiently:

1. Get Digital Signature Certificates (DSC)

Each proposed director and subscriber to the Memorandum of Association (MOA) must obtain a Class 3 DSC. This is used to digitally sign documents for a paperless registration process.

• Validity: 2 years
• Cost: Rs. 1,000 – Rs. 2,000 (varies by certifying authority)
• Recommended Providers: eMudhra, NIC, or other MCA-recognized agencies.

2. Apply for Director Identification Number (DIN)

Every director must have a unique DIN. For new companies, DINs are issued as part of the SPICe+ incorporation form, so a separate application is not needed.

• DIN is valid for life and remains the same even if the director changes companies.
• Foreign nationals can also apply using a passport and overseas address proof.

3. Reserve a Company Name

Use the RUN (Reserve Unique Name) service on the MCA portal to request your preferred company name. You can submit up to 4 name options.

Naming Guidelines:

• The name must be unique and not identical to existing companies
• Should follow MCA naming rules and not include restricted words
• Approval Time is usually 1–2 working days
• Approved names are reserved for 20 days

If rejected, you can reapply immediately with alternate name options.

4. Prepare Required Documents

You’ll need to draft and finalize several legal documents:

• The Memorandum of Association (MOA) defines the company's main objectives.
• Articles of Association (AOA) set rules for internal management.
• Director Declaration of Consent
• Rent agreement, utility bill, and NOC from the property owner

All documents must be formatted as per MCA rules and digitally signed by the concerned parties.

5. File the Incorporation Form (SPICe+)

Submit the SPICe+ form online along with all required documents. Pay the applicable government fees, based on your company's authorized capital.

This single form covers:

• Company registration
• PAN & TAN allotment
• EPFO & ESIC registration
• Bank account opening

Ensure all files are in PDF format, and cross-check director details to avoid rejection.

6. Receive the Certificate of Incorporation

After the documents are verified, the Registrar of Companies (ROC) will issue the Certificate of Incorporation (COI). This certificate confirms the legal formation of your company and includes:

• A unique Corporate Identity Number (CIN)
• Your company’s PAN (Permanent Account Number)
• TAN (Tax Deduction and Collection Account Number)

At RegisterKaro, we aim to complete the process within 7–10 working days for standard applications. However, the entire registration may take 10–15 working days, depending on:

• The accuracy of the submitted documents
• The response time of government authorities

Once received, the COI allows you to start business operations legally and open a corporate bank account.

The fees for registration of a private limited company and the penalties for non-compliance are:

Registration Costs

The cost of private limited company registration involves several components:

Penalties for Non-Compliance

Failing to meet regulatory requirements can result in significant penalties:

When looking into how to open a company in India, opting for Private Limited Company registration provides key advantages for sustainable business growth, trust, and compliance.

1. Legal Recognition & Protection

• Separate Legal Identity: The company is recognized as a separate legal entity. It can own property, enter into contracts, and initiate or face legal action in its name.
• Limited Liability: Shareholders are protected from personal liability. Their risk is limited to the amount invested in shares.

2. Enhanced Transparency & Credibility

• Builds Trust: Being a registered company improves your credibility with clients, suppliers, and financial institutions.
• Investor Confidence: Proper compliance and structured governance help attract serious investors.

3. Financial Advantages

• Easier Access to Loans: Banks and NBFCs prefer to offer loans to registered companies over unregistered entities.
• Equity Investment Ready: You can raise funds by offering shares to angel investors, venture capital firms, or strategic partners.

4. Operational Advantages

• Easy Transfer of Ownership: Shares can be transferred smoothly, making changes in ownership or investment simple under company law.
• Asset Transactions in Company Name: The company can own, buy, or sell assets directly. Transactions are backed by board resolutions, simplifying operations compared to sole ownership.

5. Growth Opportunities

• Eligible for Government Schemes: Registered companies can benefit from schemes under Startup India, MSME incentives, and various industry-specific policies.
• Strategic Partnerships Made Easier: Being a formal entity makes it easier to enter joint ventures, mergers, or partnerships.

6. Perpetual Succession

• Continues Beyond Owners: The company exists independently of the founders or shareholders.
• Supports Long-Term Vision: Helps create a legacy by carrying forward the founder’s goals and values, even after their exit.

Disadvantages of Private Limited Company Registration

While the benefits are strong, there are also some challenges to consider:

1. More Compliance Requirements

Regular filings, statutory records, board meetings, and audit procedures must be followed as per the Companies Act.

2. Higher Operational Costs

The cost of registration, legal services, compliance, and maintaining books is higher than for unregistered or simpler structures.

3. Limited Financial Privacy

Details such as financial statements, directors’ names, and other information are publicly available on the MCA portal.

4. Restrictions on Share Transfer

The company’s Articles of Association may restrict share transfers, which can complicate investor exits or new investments.

5. Complex Closure Process

Winding up a private limited company involves multiple legal steps and can be time-consuming.

6. Slower Decision-Making

Decisions must go through formal procedures like board meetings and resolutions, which may reduce operational flexibility.

Tip: Working with a legal or financial advisor helps manage compliance easily and ensures you meet all legal obligations without delays.

Choosing the right business structure is essential, as it impacts liability, tax benefits, compliance, and investment opportunities. Below is a quick comparison to help you understand the key differences between popular company registration types in India:

After completing private limited company registration, businesses must maintain annual compliance with various statutory requirements:

After your Private Limited Company is successfully registered with the Ministry of Corporate Affairs (MCA), you’ll receive a Certificate of Incorporation, also known as the COI. This official document confirms that your company has been legally formed under the Companies Act, 2013.

The COI includes your company’s legal name, Corporate Identification Number (CIN), date of incorporation, and registered office details. It’s a crucial document that proves your company’s legal existence.

You’ll need the COI for several business activities, such as:

• Opening a business bank account
• Registering for PAN, TAN, and GST
• Entering into legal contracts
• Applying for licenses and permits
• Seeking funding or attracting investors

Having a valid COI builds trust with customers, government authorities, and potential partners.

How to Get a Registration Number for a Private Limited Company?

After your company is registered with the Ministry of Corporate Affairs (MCA), you will receive a Certificate of Incorporation. This certificate includes your Corporate Identification Number (CIN), which serves as the official registration number of your private limited company.

Steps to Get a Private Limited Company Registration Number:

1. Get DSC and DIN – Apply for a Digital Signature Certificate and Director Identification Number for all proposed directors.
2. Choose and Approve a Company Name – Submit your name choice to MCA through the SPICe+ or RUN form.
3. Fill and submit the SPICe+ Form – Provide company details like business address, directors, and capital.
4. MCA Reviews Your Application – The government verifies the documents and details.
5. Receive Your Certificate of Incorporation – Once approved, MCA issues the certificate along with your CIN.

Your CIN is used in all legal, tax, and compliance matters. It is also needed for opening a company bank account, filing GST, or submitting annual returns.

How to Download the Private Limited Company Registration Certificate?

If you need a digital copy of your company’s Certificate of Incorporation, here’s how to get it:

1. Visit the MCA Portal: Go to www.mca.gov.in.
2. Log in to your account: Use your registered username and password (Business User account).
3. Go to the ‘MCA Services’ section: Click on “Get Certified Copies” or “View Public Documents.”
4. Search for your company: Enter your company’s CIN or full name to locate it.
5. Pay the applicable fee (if any): Some documents may have a nominal fee for download.
6. Download the COI: Once the document is ready, download the Certificate of Incorporation in PDF format.
7. Keep it safe: Save the file and print a copy for your company records.

This certificate is often requested during audits, legal filings, or when applying for official approvals, so it’s important to have it readily accessible.

How to Check Private Limited Company Registration Status?

To check whether your Private Limited Company is registered in India, follow these simple steps:

1. Visit the MCA website: Go to www.mca.gov.in.
2. Access the Company Master Data: Click on “MCA Services” in the main menu, then select “View Company/LLP Master Data.”
3. Enter company details: Type in your company’s name or Corporate Identification Number (CIN).
4. Complete the CAPTCHA and submit: Enter the verification code and click “Submit.”
5. Check the status: You’ll see key information such as the company’s registration number, date of incorporation, current status (active, inactive, etc.), and registered address.

If you run into any issues or need help, you can contact the MCA helpdesk or visit the local Registrar of Companies (RoC) office.