Private Limited Company refers to any type of business entity that has ‘private’ ownership and limited liability. To start a private limited company, it is mandatory to have a minimum of 2 members, and the highest digit can go up to 200 members as per the Company Act 2013. As the startup ecosystem is booming in India, individuals who are willing to start their business must learn about various company registration processes, and one such is private limited company registration.

Want to know how to register a Private Limited Company in India? Read along!

Step 1 - Obtain DSC (Digital Signature Certificate)

Individuals must obtain DSC for all promoters of the company. DSC is equivalent to the paper signature under the Information Technology Act. Private limited company registration in India is an online procedure. Hence, obtaining DSC is mandatory.

Step 2 - Obtain DIN (Director Identification Number)

Individuals can obtain DIN by filing Form DIR-3 or filing through SPICe+.

Step 3 - Search for Name Availability

Complete name reservation via Part-A of SPICe+ or complete the name approval process by filling Part-A and Part-B of SPICe+ form together.

Step 4 - Complete Filing for SPICe+

Individuals must complete filing for SPICe+ and submit to the ROC along with necessary documents.

Step 5 - Complete Filing for e-MOA and e-AOA

Individuals must complete filing for e-MOA (electronic Memorandum of Association) and e-AOA (electronic Articles of Association).

Step 6 - Apply for the Company’s PAN and TAN

Once all the details are correctly filled and submitted along with the required documents, the Ministry of Corporate Affairs (MCA) will approve the registration procedure of a private limited company.

As individuals now know how to register a company in India, let’s move on to other important details related to it.

A private limited company and its members must prepare all the documents of all shareholders and directors such as:

• PAN card of Indian directors and passports of foreign directors
• Directors’/shareholders’ address proof (latest telephone bill, electricity bill, bank account statement)
• Identity proof (Ration card, voter ID, Aadhaar card, driver’s licence)
• Evidence of the company’s registered address Incorporation certificate
• Notarised rental agreement
• NOC from the property owner
• Photograph

Following is a list of eligibility parameters for registering a private limited company in India.

• There must be 2 persons as owners, i.e., shareholders.
• The company must have at least 15 directors (directors and shareholders can become the same persons).
• They must be a resident director meaning one of the directors must be Indian.

The cost of registering a private limited company in India may range from ₹ 6,000 to ₹ 30,000 depending on the number of directors, members and many other factors.

Successful registration of a private limited company can benefit a company in many ways. Read on to know about this in detail.

The benefits of private limited company registration in India are as follows below,

• The process improves the credibility of the entity.
• The registration process reduces risk related to personal assets as a private limited company has limited liability.
• The private limited company registration process allows members/shareholders to raise funds through equity, debt, and expansion while limiting liability.
• This process further ensures easy transferability of ownership.
• Businesses can attract foreign investment if they have registered their private limited company.
• A private limited company has a separate legal entity, i.e. it is different from any of the members or promoters. Therefore, in cases of loss, no creditors can sue you to get the money back.
• A private limited company has ‘perpetual succession’, meaning the death or cessation of any member or changes in membership will not affect the existence of the entity. This is possible only because of the registration of a private limited company.

With such a detailed discussion, individuals can conclude their search for how to register a private limited company in India. The registration process is a bit complex. Hence, individuals/startups can take the help of professionals. Even if they hire a professional, they must know the registration process and everything related to it to handle the company with more efficiency.