Description
Company Registration
Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required. A natural person can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.
Unique features of a private limited company like limited liability protection to shareholders, ability to raise equity funds, separate legal entity status and perpetual existence make it the most recommended type of business entity for millions of small and medium-sized businesses that are family owned or professionally managed.
Advantages Of Private Limited Company?
There are multiple reasons to choose private limited company :
- Preferred by banks, VCs & investors.
- Easy to allocate and redistribute shares to investors or other directors.
- Separate legal entity which limits your liability.
- Offers the flexibility of a partnership firm and the advantages of a Public Ltd Company.
- Easy to register, manage & run.
- Easy to dissolve or wind-up.
Minimum Requirements For Company Registration
- Minimum 2 Shareholders
- Minimum 2 Directors are required
- Minimum 1 Lac Share Capital
- DIN for all the Directors
- Atleast one Director should be an Indian Resident
Steps involved in Private Limited Company Incorporation in India
Stage 1: DSC (Digital Signature) of two directors
Stage 2: DIN (Directors Identification Number) of two directors
Stage 3: Company Name Approval from ROC
Stage 4: Certificate of Incorporation is generated by Submitting Final Documentation (like AOA, MOA, Subscription Pages, Consent Letters, Business Address Proofs, etc.)
Stage 5: Application for PAN & TAN
Timeline for Company Registration in India
It takes 15 to 20 working days (approx.) to complete Private Limited Company Registration procedure. Timeline may vary depending on replies from ROC department.
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