How to Register a Private Limited Company in India?

You need to file the SPICe+ form on the MCA (Ministry of Corporate Affairs) portal to register your private limited company in India. This detailed form covers name reservation for the company, DIN allotment, incorporation, and PAN/TAN allotment. According to the Companies Act of 2013, a minimum of two directors and a maximum of 200 members are required to register a private limited company in India. At least one director needs to be an Indian resident, and all directors must obtain a DIN issued by the MCA. 

There are two types of fees involved for registering a Pvt Ltd. company in India: government fees and professional fees (optional). The registration process may take approximately 7-15 working days. Additionally, you can propose two unique names for consideration, and the name must not be similar to the name of any existing company/LLP/trademark. A private limited company's name must be in the form of 'ABC Pvt. Ltd'. 

Moreover, once the company is registered, it must appoint its first auditor within 30 days of incorporation at the first board meeting. It must also conduct a minimum of 4 board meetings during the calendar year at specific durations. In this blog, we will learn more about how to register a private limited company in India. 

What are the Steps to Register a Private Company in India?

Follow the steps below to register a private limited company in India:

• Step 1: Obtain a Digital Signature Certificate (DSC)

All shareholders and directors need to obtain a DSC issued by the Controller of Certification Agencies (CCA). They need to provide key details such as PAN, Aadhaar, passport-sized photos, phone number, and email address. If applicable, foreign nationals must also submit notarized and apostilled documents. 

• Step 2: Director Identification Number (DIN)

Anyone who wishes to serve as a director of the company must obtain a director identification number (DIN). It must be submitted along with the registration form. 

• Step 3: Reserving a Name for the Company (SPICe+ Part A)

To secure a unique name for your company, you need to start by completing the SPICe+ Part A form. You can propose two names for approval. Filing the form includes choosing the type of company, class, category, and sub-category. It also includes stating the primary division of industrial activity and providing a detailed description of the business. 

• Step 4: Submitting the Company Details (SPICe+ Part B)

Provide detailed information regarding capital, registered office address, stamp duty, PAN and TAN application, subscriber and director details, and other required details. 

• Step 5: Preparing and Submitting the Incorporation Forms (SPICe+ MoA and AoA)

Draft the MoA (Memorandum of Association) and AoA (Articles of Association) that contain crucial details related to the company. Before submitting these documents to the MCA for approval, obtain digital signatures from subscribers and professionals. 

Moreover, to register for GST, EPFO, ESIC, a bank account, a shop, and an establishment license, file the AGILE-PRO-S form. 

• Step 6: Receive Certificate of Incorporation

Once your documents are successfully verified, you will be issued a Certificate of Incorporation (COI) by the MCA along with the Company Identification Number (CIN), PAN, and TAN. 

What are the Documents Required to Register a Private Company?

Below are the documents you need to submit for registering an LLP, one-person company, private limited company, and public limited company:

Documents of the Directors and Shareholders of the Company/ Partners of the LLP

• Submit DIN (Director Identification Number) and DSC (Digital Signature Certificate of all the directors (partners, if LLP). In case of an LLP, submit DPIN (Designated Partner Identification Number)
• Any of the following can be submitted as the identity proof of the company's directors and shareholders (partners in case of LLP):
  • PAN card 
  • Passport
  • Aadhaar Card
  • Driving License
• Any of the following documents can be submitted as proof of address for all the directors and shareholders (partners in case of LLP):
  • Bank account statement with address
  • Electricity bill, not older than 2 months
  • Telephone bill, not older than 2 months

Documents of the Company/LLP

• The Memorandum of Association (MoA) specifies the company's objectives for which the company is going to be established, and also the company's members' obligations. 
• The Articles of Association (AoA) define the bylaws on which the company will operate. 
• Submit the following documents as proof of address of the registered office of the company:
  • A letter or NOC from the landlord confirming their permission to use the office/premises as the company/LLP's registered office. 
  • Tenancy/rental agreement between the landlord and the company/LLP.
  • Sale deed of the company/LLP office premises in the company/LLP's name. 

What are the Steps to Register a Company in India for NRIs?

For NRIs, registering a private limited company in India is simple and entirely online. The process is the same as that of Indians, which is the MCA SPICe+ process. However, you need to provide some additional proof, like a passport. You need to have at least one Indian resident director, and the total time for registration may take 7-15 days. Follow the steps below to register a private limited company in India as an NRI:

• Step 1: Obtain Digital Signature Certificate (DSC)

All directors of the company must apply for a Class 3 DSC online via eMudhra or CAMS. You must use your foreign address for the same, and it might take 1-2 days. 

• Step 2: Name Reservation for the Company and Acquiring DIN

Complete SPICE+ form Part A on the MCA portal. You can propose two names for consideration. The name approval process may take 1-3 days. Also, obtain a DIN (Director Identification Number) for up to 3 directors. 

• Step 3: Submit the Application

File SPICe+ Part B form with company details, MoA/AoA, and pay the fees online. It will also help you get your company's PAN, TAN, EPFO, and ESIC automatically without even applying. 

• Step 4: Receive the Certificate and Start the Business

Upon approval, the MCA will issue a certificate of incorporation (COI) along with the CIN number. You can now start the business by filing INC-20A within 180 days (proof of share money deposit). 

What are the Documents Required to Register a Company for NRIs?

The table below lists the documents NRIs need to submit to register a private limited company in India:

What are the Fees and Timelines for Company Registration?

For registering a private company in India, two types of fees are involved, which are as follows:

1. Government Fees: It includes MCA filing fees and state-wise stamp duty. The fee may vary by authorized capital. 

2. Professional Fees (Optional): It is charged by consultants or professionals. 

Fee for Private Company Registration in India

The table below lists the approximate fees for registering a company in India. Keep in mind that the fee may vary based on the authorized capital, professional fees, stamp duty, and the number of directors and members:

General Timeline for Company Registration 

• Name approval: 1-2 working days
• Incorporation Approval: 3-5 working days
• Total timeline: Approximately 7-15 working days

What are the Advantages of Company Registration in India?

Registering a private limited company offers several benefits, which are as follows:

• Offers trustworthy investors bank credits and good investments.
• Enhances the ability to develop and grow the company by ensuring greater commitment to wealth and stability. 
• It builds goodwill and also supports more customer attraction. Also, it protects against threats and losses. 
• Covers the responsibility to protect the company's assets and also against personal obligations. 

Selecting the Name and Capital of the Company

Choosing a unique name for the company is crucial for ensuring legal protection and differentiating from your competitors. Additionally, understanding the capital requirement is also important to ensure the business has sufficient funds to manage day-to-day operations. Here is detailed information related to selecting the name and capital of the company:

Choosing the Company's Name

• Submit the name of the company in the Form SPICe+ application. 
• For reserving the company's name, enter the type of entity and the proposed names for the company. The proposed name must not be similar to any existing company/LLP/ trademark's name. 
• If your name gets rejected, you can propose another name by submitting another SPICe+ form application and paying the required fees. 
• An OPC must have its name in the form of 'XYC (OPC) Private Limited'. Similarly, a public company's name must be in the form of 'XYZ Limited' and a private company's name must be 'XYZ Pvt. Ltd.'

Capital of the Company

• Paid-up capital means the amount of funds a company has received from the shareholders in exchange for the company's shares. It is created when a company sells its shares in the market directly to the investors, usually through an IPO (Initial Public Offering). 
• To start a Public limited company, private limited company or a one-person company, there is no minimum paid-up capital requirement.
• Companies can be incorporated with any authorised capital, even ₹1. It means the maximum amount of share capital that the company may issue to its shareholders under the MoA. Ensure to mention the authorised capital in the MoA. 

What are the Steps to Consider After Company Registration?

You need to consider certain compliance requirements annually after your company is registered, which are as follows:

• The company must appoint its first auditor within 30 days of incorporation at the first board meeting. 
• A minimum of 4 board meetings during the calendar year at specified intervals must be conducted. 
• The company must file certain annual forms with the ROC (Registrar of Companies). Before the due date with the ROC, it must maintain and file a profit and loss account, annual return, and balance sheet every financial year, along with an auditor's report. 
• Every company is required to maintain certain Statutory Registers. 

The Bottom Line

The company registration process in India is an important step for businesses looking for legal recognition, credibility, and long-term growth. The entire registration process is handled online through the MCA portal using the SPICe+ form. Completing the necessary documentation, selecting a unique name, obtaining a DIN and DSC, and other relevant steps are important to ensure a smooth registration process. 

To ensure your company registration process is professionally managed, contact an expert at Savetaxs. At Savetaxs, we aim to simplify the registration process by providing comprehensive guidance and support throughout. Our team of experts offers tailored guidance to your specific requirements and business goals. We will also guide you in gathering the required documents and ensuring accuracy. Connect with us right away and start your entrepreneurial journey with expertise by Savetaxs.