How to Register a Private Limited Company in India

How to Register a Private Limited Company in India: A Step-by-Step Guide

Starting a tech-based startup in India offers distinct benefits when structured as a private limited company. This structure ensures limited liability, safeguarding personal assets in the event of business losses. A private limited company also provides a separate legal identity, attracting investors who favour well-structured entities. Additionally, features such as perpetual succession, increased credibility, a professional image, and tax benefits enhance long-term sustainability.

‍

Agrim Advisors offers a cost-effective solution to register a Private Limited Company in India. We handle all legal processes and ensure compliance with regulations set by the Ministry of Corporate Affairs (MCA).

Registration Criteria for Private Limited Companies

Minimum Shareholders and Directors: A private limited company must have at least two shareholders and two directors.

‍

Residency Requirement for Directors: Among the two directors, at least one must be an Indian resident, ensuring local accountability and compliance with Indian corporate laws.

‍

Capital Requirement: There is no minimum capital requirement for forming a private limited company in India, making it accessible for startups and small businesses.

‍

Company Name: The name of your company should be:

• Short and simple for easy recall
• Meaningful, reflecting the nature of the business
• Not illegal or offensive
• Unique, avoiding confusion with existing companies
• Ending with the suffix "Private Ltd." to denote its legal status as a private limited company

Company Registration Process

Registering a company in India involves a straightforward five-step procedure:

‍

Step 1: Obtain a Digital Signature Certificate (DSC)
Each director and shareholder must secure a Digital Signature Certificate (DSC) from the Controller of Certification Agencies (CCA). Required documents include passport-sized photos, PAN, Aadhaar Card, phone number, and email address. Foreign nationals must submit notarized and apostilled documents if applicable.

‍

Step 2: Secure a Director Identification Number (DIN)
Prospective directors need to obtain a Director Identification Number (DIN). This is mandatory for directors and must be included in the registration form.

‍

Step 3: Reserve Your Company Name (SPICe+ Part A)
Fill out the SPICe+ Part A form to reserve a unique company name. Choose the company type, class, category, and sub-category, specify the primary division of industrial activity, and provide a detailed business description. Propose two names for approval.

‍

Step 4: Provide Company Details (SPICe+ Part B)
Submit comprehensive information about the capital, registered office address, subscriber and director details, stamp duty, PAN and TAN application, and necessary attachments. Ensure compliance with the Companies Act 2013 and obtain digital signatures from assisting professionals.

‍

Step 5: Draft and Submit Incorporation Documents (SPICe+ MOA and AOA)
Prepare the Memorandum of Association (MOA) and Articles of Association (AOA), containing essential company details. Obtain digital signatures from subscribers and professionals before submitting these documents to the MCA for approval. Additionally, file the AGILE-PRO-S form to register for GST, EPFO, ESIC, a bank account, and a shop and establishment license (depending on the state).

Certificate of Incorporation

Upon successful verification of the submitted documents, the MCA will issue the Certificate of Incorporation (COI), including the Company Identification Number (CIN), PAN, and TAN.

Document Checklist

For Indian Nationals:

• Self-attested PAN card copy of all the directors/shareholders
• Passport-sized photo of all the directors/shareholders
• Aadhaar Card of all the directors/shareholders
• Proof of identity of all the directors/shareholders
• Address proof of all the directors/shareholders

For Foreign Nationals:

• Notarised documents of all the directors/shareholders
• Passport-sized photo of all the directors/shareholders
• Passport of all the directors/shareholders
• Address proof of all the directors/shareholders

For Registered Office:

• Proof of business address
• Copy of the rent agreement (if applicable)
• Owner's no objection certificate

How Agrim Advisors Can Help

At Agrim Advisors, we are committed to providing end-to-end professional consulting solutions for founders and investors. Our services span from company incorporation and fundraising to compliance management, acquisitions, and beyond. If you believe we can assist you, feel free to reach out, and we will connect with you shortly.

Disclaimer

This content is for general informational purposes only and does not constitute professional advice. For specific legal, tax, or financial needs, seek professional guidance. Agrim Advisors assumes no liability for reliance on this information. Note that the content is based on current laws, which may be subject to change.