Company Registration

The default option for start-ups and growing businesses as only private limited companies can raise venture capital.

  • Two DSC & up to two DINs

    The directors must be registered with the MCA

  • Company Name Reservation

    We will then help you pick a unique name

  • MoA & AoA

    We will draft your company's constitution

  • SPICe i.e. INC-32 Approval

    Your company is now incorporated

  • Company PAN & TAN

    We will send in a request to the NSDL

First Consultation Absolutely Free

What is Company Registration?


Private Limited Company, the most popular legal structure for businesses, should be chosen by anyone looking to build a scalable business. It is one of the most popular legal structure option for businesses in India. A Private limited company has a minimum of two members and a maximum of fifty members. A director of a private limited company has limited liability to creditors. In case of a default, banks / creditors can sell only company’s assets but not the personal assets of a directors. A Private limited company is considered one of the most popular corporate entity amongst the small, medium and the large businesses in India due to its various advantages.

Start-ups and growing businesses choose to register a company in India because it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to attract top talent. As these entities must hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA), they tend also to be viewed with more credibility than a Limited Liability Partnership (LLP), One Person Company (OPC), or General Partnership. At VakilSearch, we are continuously available to help you understand how to register a private limited company. Company Registration in India can be done through VakilSearch in all major cities including Hyderabad, Mumbai, and New Delhi, Chennai, Kolkata & all other Indian cities.

Choose Private Limited Company Registration as
  • It is flexible and has limited liability.
  • A greater capital contribution and greater stability
  • The possibility to grow big and expand

The process for registration of a company is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. A natural person can be a director and as well as shareholder, where a corporate legal entity can only be a shareholder. In addition to that, foreign nationals, foreign corporate entities or NRIs are also allowed to be the Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.

Some of the unique features of a private limited company like the limited liability protection to shareholders, the ability to raise the equity funds, separate legal entity status and the perpetual existence make it one of the most recommended type of business entity for the millions of small and medium sized businesses that are owned by families or professionally managed.

It takes 10-15 working days on an average to complete online company registration, subject to the government processing time and the client document submission.

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6 Essential Facts on Company Registration


What if I am a single founder?

A private limited company is an entity with two directors and two shareholders at the minimum. If you are a single shareholder, you can also bring in your mother, father or any other relative to be part of the limited company with just one single share.

Why do start-ups prefer private limited companies?

Simple. Start-ups set-up private limited companies so that they can raise venture capital funding and offer their best employees stock options. Without funding and stock options, it's almost impossible to build and scale a large business. Banks and other lenders would also much rather lend to private limited companies, as compared to sole proprietors.

What is the procedure to register one?

Initially, we help you get a digital signature certificate (also known as DSC), which is nothing but an e-signature to help you complete the new company registration online. It usually takes two days to get the DSC from the time you submit the documents. Next, we apply for the Director Identification Number (also called a DIN). This typically takes one day. The third phase involves selection of a name for your company. Now, do remember that your company name need not be your brand name. For example, Naukri.com has been incorporated as InfoEdge Technologies. Once done, we will prepare the Memorandum and Articles of Association and apply for the Certificate of Incorporation.

How many shareholders can there be in a private limited company?

A private limited company must have at least two directors and shareholders, and can have a maximum of 15 directors and 50 shareholders.

How much do you need to invest?

Good news. You don't need to invest any money upfront. Most entrepreneurs do bring computers and other necessities at the very beginning. These can be the assets of the company. Private limited companies in India do not need to have any paid-up capital (that is, they do not need to introduce any money into the company).

What regulatory requirements are placed on private limited company?

As private limited companies are not traded publicly, regulatory requirements placed on them are fewer than on public companies. For example, they need not disclose their books of accounts. Because of this advantage, they need only worry about the long term rather than face the music from their shareholders in case their results in a particular quarter are poor.

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Documents Required for Company Registration


Identity and Address Proof

Identity and the address proof will be needed for all the directors and the shareholders of the company to be incorporated. In case of an Indian national, PAN card is mandatory. For the foreign nationals, apostilled or notarised copy of the passport has to be submitted mandatorily. All documents submitted should be valid. The residence proof documents like the bank statement or the electricity bill must be less than 2 months old.

Registered Office Proof

All companies should have a registered office in India. To prove admittance to the registered office, a recent copy of electricity bill or the property tax receipt or water bill must be submitted. Along with the rental agreement, utility bill or the sale deed and a letter from the landlord with her/ his consent to use the office as a registered office of the company should be submitted.

List of documents to be submitted by the Director and the Shareholders

  • Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
  • Scanned copy of Voter's ID/Passport/Driver's License
  • Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
  • Scanned passport-sized photograph
  • Specimen signature (blank document with signature [directors only])
  • Note: Any one of the directors must self-attest the first three documents. In case of foreign nationals and NRIs, all the documents must be notarised (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).


    For the Registered Office

  • Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
  • Scanned copy of Notarized Rental Agreement in English
  • Scanned copy of No-objection Certificate from property owner
  • Scanned copy of Sale Deed/Property Deed in English (in case of owned property)
Note: Your registered office need not be a commercial space; it can be your residence, too.

Advantages of a Private Limited Company


Limited Liability

Businesses often need to borrow money. In structures such as General Partnership, partners are personally liable for all the debt raised. So if it cannot be repaid by the business, the partners would have to sell their personal possessions to do so. In a private limited company, only the amount invested in starting the business would be lost; the directors' personal property would be safe.

Separate Legal Entity

A Private Limited Company is legal entity and juristic person established under the Companies Act. Therefore, a company has a large range of legal capacities including that of opening of a bank account, hiring employees, taking on the equity or obtaining the licenses and more as an independent corporate entity. A member (Shareholders/Directors) of a company has no personal liability to the creditors of a company for company's debts.

Investment-ready

Private limited companies easily accommodate equity funding as there is a clear distinction between shareholders and directors as well as limited liability. In fact, venture capitalists and private equity funds are unlikely to invest in any other structure. This is because LLPs would require them to become partners in the business, while an OPC can have only one shareholder. This feature also gives you the ability to hire top talent you may not be able to afford by merely paying a salary.

Easy Debt Access

A private limited company has more options for taking on debt than LLPs. Not only are bank loans easy to obtain (relative to OPCs and LLPs), the option of issuing debentures and convertible debentures are always available to it.

Borrowing Capacity

A Private Limited Company can raise the equity funds in India. The Companies can also issue equity shares, preference shares, debentures and accept the deposits with RBI permission. The Banks and Financial Institutions prefer to provide the funding to a company rather than the partnership firms or proprietary concerns.

Uninterrupted Existence

A Private Limited Company has 'perpetual succession', that means, it has an uninterrupted existence until it is legally dissolved. As a company is a separate legal person, it is unaffected by death or other the departure of any member and it continues to be in existence irrespective of the changes in ownership.

Easy Transferability

The ownership of a business can be very easily transferred in a company by transferring the shares. The signing, transfer and filing of share transfer form and the share certificates is adequate to transfer the ownership of a company. In a private limited company, the consent of other shareholders may be required to effect share transfers.

Owning Property

A Private Limited Company being an artificial person, can obtain, enjoy, own and alienate, property in its name. Property owned by a company may be building, machinery, intangible assets, land, residential property, factory, etc., No shareholder can stake a claim upon the property of the company - as long as the company is the going concern.

List some disadvantages of a Private Limited Company:-

  • The statutory compliance are high.
  • Requires a high setup cost as compare to others.
  • The involvement of other Directors in the decision making.
  • The restriction to transfer shares to others without an agreement.

What are the minimum requirement for Company registration?

  • Minimum 2 Shareholders
  • Minimum 2 Directors
  • Minimum 1 Lac Share Capital
  • DPIN for all Directors
  • At least one Designated partner must be an Indian Resident

What are factors one should consider in selecting the company name?

The name of the company is very important. It is considered the first impression for the suppliers, buyers and the stakeholders. It must, therefore, be suggestive, relevant and attractive. There are various factors that one must keep in mind while naming the company.

It must be short & simple:

The name must be concise and not be too long. People should be able to say it easily and they should be able to recollect your company’s name the first time they read it or hear it.

It must be meaningful:

The name of the company should be related to the business. It must fit the company’s branding.

It must be unique:

The name of the company mustn’t be the same or identical to an already existing company or a trademark. One must preferably avoid the plural version

Add suffix:

The name of the company must end with the suffix “Private Ltd” in a case of a Private limited company and “LLP” in case of a limited liability partnership.

It shouldn’t be illegal / offensive:

The name of the company shouldn’t be against the law. It shouldn’t be abusive or against customs and the beliefs of any religion.

FAQs on Private Limited Company


No, new company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.
If you have all the documents in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar.
The Registrar of Companies (RoC) across India expect applicant to follow a few naming guidelines. Some of them are subjective, which means that approval can depend on the opinion of the officer handling your application. However, the more closely you follow the rules listed below, the better your chances of approval. First, however, do ensure that your name is available.
Unique Component: In Flipkart Internet Private Limited, Flipkart is the unique component. Now, once taken, the name Flipkart will not be given to any other business within the suffix Internet or even related categories (E-commerce and Online Solutions, for example). But there is some subjectivity, too. Some RoCs may not even approve the name Flipkart Chemicals Private Limited, reasoning that the e-commerce brand Flipkart is too well-known. Similar sounding names would also be rejected (so no Flipkart).
Blacklist: Abbreviations, adjectives and generic words are rejected. So BBC or XYZ would be rejected, as would Good Quality Biscuits. The words bank, exchange and stock exchange, unless approved by RBI or SEBI, would also be rejected.
No Common Trademark: There should not be a registered trademark by the same name on the IP India website. If there is one, the name can only be approved if you are able to get a No-Objection Certificate from its owner authorising you to use it.
Descriptive Component: In Biocon Research Private Limited, the word 'Research' describes the business the company is into. You cannot have 'Research' in your name if you're, say, in the logistics or restaurant business.
All directors must provide identity and address proof, as well as a copy of the PAN Card (for Indian Nationals) and Passport (for foreign nationals). No-objection Certificate must be submitted by the owner of the registered office premises.
The DSC is an instrument issued by certifying authorities (TCS and n-Code are two of them) by which you can sign electronic documents. As all documents needed are electronic, partners need a DSC.
Yes, so long as the annual compliances are met, the private limited company will continue to exist. If you do not comply with the requirements, it will go dormant, until it is struck off the register altogether.
The cost of running a private limited company can be divided into four categories: cost of setting a private limited company, cost of accounting and auditing, cost of compliance and miscellaneous expenses. At the very minimum, you can expect to spend Rs. 40,000 on all of these.
Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs or rupees and even lead to the blacklisting of directors.
These documents contain the rules, vision and mission of your organisation, and define, among other things, the exact business and the roles and responsibilities of shareholders and directors.
Yes, a minimum of two directors are needed for a private limited company. The maximum members can be 200. You can register as a One Person Company, if you are the sole owner of the company.
Any individual/organization can become a member of a private limited company including NRI/foreigners. Nonetheless, the individual must be 18+ above in terms of age and should hold a valid PAN card.
One needs to start a company with a minimum capital of Rs. 100,000. However, you needn’t pay this amount to bank. One can show that the capital has been used as the pre-incorporation expenses of the start-ups. For example: private limited registration expenses. One can show this capital has been infused in the form of assets like computers etc.
Yes, a salaried person can become the director in private limited, LLP or OPC private limited company. One needs to check the employment agreement if that allows for such provisions. In a lot of cases, the employers are quite comfortable with the fact that their employee is a director in another company.
No, one cannot convert an LLP into a Private Limited Company as it is not a MCA. The LLP Act, 2008 and the Companies Act, 2013, both don’t have any provisions on conversion of the LLP in a private limited company. However, if one wants to expand their business they can register a new Private Limited Company with the same name. The LLP Company needs to just issue a no objection certificate.
Vakilsearch can integrate a Private Limited Company in 15-25 days. The time taken also depends on the relevant documents provided by the applicant and the speed of approvals from the government. To ensure a speedy registration, kindly pick a unique name as the proposed Company name and also ensure that you have all the required documents prior to the starting of the registration process.
Yes, a NRIs and Foreign National can become Directors in a Private Limited Company. They need to get a DPIN from the Indian ROC. They can also be a majority shareholder in the company. Provided at least one Director on the Board of Directors should be an Indian Resident.
The entire procedure is done online and one does not have to be present at our office or any other place for the incorporation. A scanned copy of the documents have to be sent via mail. They get the company incorporation certificate from the MCA via courier at the business address.
A company is a legal entity and like a different person established under the Act. It is treated as a different person which can own a property and have debts or creditors. The members (Directors/Shareholders/) of a company have no liability to creditors of a company in a case company is unable to pay the debts.
Yes, one can register the company at their residential address. One requires to submit the utility bill copy of the same.
Yes, it is a good to register a family member as a partner. At a later stage one can change this or transfer shares of the directors.
By filling Form 27 (Registration of particulars by Foreign Limited Liability Partnership (FLLP), any foreign LLP may establish its place of business in India. The eForm has to be digitally signed by the authorized representative of the FLLP. There is no are mandatory requirement to apply and obtain DPIN or DIN for the Designated Partners of the FLLP but the DSC of the authorized representative is obligatory.
Any unlisted company/ private company that is eager to convert into a LLP needs to apply through Form 18 (Application and Statement for conversion of a private company/ unlisted public company into limited liability partnership (LLP). Form 17 needs to be filed along with the Form 2 (Incorporation document and Subscriber’s statement).
All existing partnership firm that are willing to get converted into a LLP have to apply through Form 17 (Application and statement for the conversion of a firm into LLP. The Form 17 needs to be filed along with the Form 2 (Incorporation document and Subscriber’s statement).
To register an Indian LLP, one needs to apply for a Designated Partner Identification Number (DPIN) first. This can be done by filing an eForm for acquiring the DIN or DPIN. One would then be required to acquire their Digital Signature Certificate and register the same on the portal. Subsequently, one needs to get the LLP name approved by the Ministry. Once the LLP name is approved, a LLP can be registered by filing the incorporation form.
To register a section 8 company, the applicant is required to file Form INC-1 for name availability. After the name is approved, there is a further need of obtaining a license for a Section 8 Company, for which the Form INC-12 is to be filed by such a company. After gaining the license number, the applicant can proceed further to incorporate a company by filing an e forms SPICe or INC-7 (in case number of subscribers are more than seven) along with linked forms as the case may be.
In order to register a Part 1 Company, the applicant is required to file Form INC-1 for the name availability, first. After the approval of the same, the applicant is then required to file Form No. URC-1 along with filing e forms INC-7, INC-22 and DIR-12 or e-forms INC-7 and DIR-12 as the case may be.

Other concerns regarding A Private limited Company:
  • A Private Limited Company needs a few more ROC compliance translating into an additional cost of 5000 to 10000/annum.
  • The minimum capital required is Rs.100,000.
  • A Private limited company can have a maximum of 200 members.

Company Registration Process


5 Working Days

One director must apply for the Digital Signature Certificate (DSC), which is necessary to file the company registration documents. For this, you will only need to provide a few scanned documents and details; our representatives will fill the form and submit it online.

7 Working Days

As soon as we apply for the DSC, we will ask you to pick a name for your company, and send us some scanned documents regarding it and its directors. These will be used to file SPICe i.e. INC-32 and the Memorandum of Association (MoA) and Articles of Association (AoA). The Certificate of Incorporation will be approved at the end of this process.

2 Working Days

Every company needs a registered Permanent Account Number (PAN) and Tax Account Number (TAN). We will make the application online ourselves, but you will need to courier hard copies of the required documents yourself. The PAN and TAN will be couriered to your registered office address in 21 working days.

Compare Your Options


Private Limited Company Limited Liability Partnership One Person Company Partnership
Firm
Sole Proprietorship
Recommended For
Start-ups and growing companies Professional services firms Sole promoters Home businesses Small traders and manufacturers
Ease of Accommodating Investment
Very easy to accommodate Possible, but unlikely Possible, but severely unlikely Almost impossible Impossible
Limited Liability Protection
Yes Yes Yes No No
Tax Advantages
Few benefits Most efficient Few benefits Minimal Minimal
Perpetual Existence
Yes Yes Yes No No
Statutory Compliances
High Low High Minimal Minimal
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Why Vakilsearch


3 Working Days

Just tell us a few details about your brand and we'll process your application. In three working days, you'll be ready to use the symbol alongside your brand name.

9.1 Customer Score

We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

160 Strong Team

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.