Page Contents
TogglePrivate Limited Company
Registration @ Rs. 5,100*
- Pvt Ltd Company Registration Starting at just ₹5,100 + Govt Fees (as per State) + DSC Fees.
- Name Approval on MCA, including 2 Digital Signatures (DSC) and 2 Director Identification Numbers (DIN).
- Comprehensive support covering MCA Fees, State Govt. Fees, and GST Registration with 3 Months of GST Return Filing FREE.
Private Limited Company Registration
A private limited company is a preferred business structure among Indian entrepreneurs due to its benefit of limited liability, which safeguards your personal assets in case the business runs into financial trouble. It is also simpler to establish and operate than other business types, making it ideal for startups and small to medium enterprises.
At Tax2Fin, we provide hassle-free online company registration services across India. Our experienced team handles all the paperwork and formalities, ensuring a smooth and accurate registration process.
Whether you’re launching a startup, running a small business, or planning to scale up, we’re here to support you every step of the way. Let’s begin your journey toward effortless company registration.
Types of Company Registration in India
The Companies Act of 2013 in India provides various company registration options tailored to different business models:
- Private Limited Company: Best suited for small to mid-sized businesses, it requires a minimum of two members and two directors. This structure limits the liability of its members and does not permit public share offerings.
- Public Limited Company: Geared toward larger enterprises seeking to raise funds from the public, this type needs at least seven members and three directors. It can also list its shares on stock exchanges.
- One Person Company (OPC): Ideal for individual entrepreneurs, this format allows a single person to establish a company with limited liability. While it involves fewer compliance obligations, there are limitations on expansion.
Additional types include Section 8 Companies—created for charitable or non-profit purposes—and Producer Companies, which are formed by groups of agricultural producers.
Comparison chart of Different types of Companies at a glance
Aspect | Private Ltd. Company | Public Ltd. Company | LLP (Limited Liability Partnership) | One Person Company (OPC) |
---|---|---|---|---|
Governing Law | Companies Act, 2013 | Companies Act, 2013 | LLP Act, 2008 | Companies Act, 2013 |
Members Required | At least 2 | At least 7 | Unlimited partners | Only 1 member |
Directors/Partners | Between 2 and 15 directors | Between 3 and 15 directors | 2 designated partners | Only 1 director required |
Minimum Capital | No minimum capital needed | No minimum capital needed | No minimum capital needed | No minimum capital needed |
Liability Coverage | Limited to shareholding | Limited to shareholding | Limited to contribution | Limited to shareholding |
FDI Permissibility | Allowed | Allowed | Allowed | Allowed |
Audit Obligation | Mandatory | Mandatory | Mandatory | Mandatory |
Compliance Schedule | Annual | Annual | Annual | Annual |
Corporate Tax Rate | 22% | 22% | 30% | 22% |
Steps for Private Limited Company Registration
Registering a private limited company in India requires following a precise set of procedures to meet the Ministry of Corporate Affairs (MCA) regulations.
Step 1: Obtain Director Identification Numbers (DINs) Every individual who plans to serve as a director for a company in India must have a unique Director Identification Number (DIN) issued by the MCA. This is a mandatory prerequisite for appointment. You can apply for a DIN for up to three directors through the SPICe+ form during company incorporation, or separately via Form DIR-3. The application requires identity proof (e.g., PAN card), address proof (e.g., Aadhaar card), and a recent photo. Foreign nationals must also provide their passport and address proof. To prevent rejections, ensure all provided information precisely matches your documents and use clear, scanned copies.
Step 2: Get Digital Signature Certificates (DSCs) Digital Signature Certificates (DSCs) are vital for directors to electronically sign documents submitted to the MCA, which is essential for the online company registration process. To get a DSC, select an MCA-approved Certifying Authority (CA) and complete their application, providing identity proof (like a PAN card) and address proof (like an Aadhaar card). You’ll then undergo a verification process (either video or in-person). Once approved, download your DSC onto a USB token or computer. A Class 2 DSC is typically sufficient for MCA filings. Make sure your documents are current to avoid delays.
Step 3: Apply for Company Name Approval Before finalizing your company name, use the MCA’s name availability tool to check potential options. Then, submit the Reserve Unique Name (RUN) form with up to two preferred names. If approved, the name will be reserved for 20 days, with the approval process usually taking 2-3 days. When choosing a name, aim for something easy to spell, avoid common words, ensure it aligns with your brand, and consider trademark registration for added protection. Always have alternative names prepared in case your initial choices are rejected.
Step 4: Draft Memorandum and Articles of Association (MoA & AoA) The Memorandum of Association (MoA) and Articles of Association (AoA) are fundamental legal documents that establish the company’s constitution and its internal operational rules. The MoA outlines the company’s core details, such as its name, registered office, primary objectives, director and shareholder liability, and capital structure. It’s crucial that the object clause comprehensively covers all intended business activities. The AoA specifies the company’s internal management framework, including procedures for shareholder meetings, director powers, and other operational guidelines. You can either adopt standard model articles or customize them to suit your company’s specific needs. Properly drafted MoA and AoA are essential for legal compliance and smooth business operations.
Step 5: File SPICe+ Form for Incorporation The SPICe+ form is an all-in-one web form that streamlines the company incorporation process by combining multiple services into a single application. It consists of two parts: Part A for name reservation (if required) and Part B for detailed incorporation information. If you’ve already reserved a name, proceed directly to Part B, where you’ll provide comprehensive company details, including the registered office address, information about directors and shareholders, share capital structure, and business activity codes. You must also attach the MoA, AoA, and identity proofs, and pay the relevant fees based on your authorized capital. Submit the form electronically with digital signatures. The Registrar of Companies (RoC) typically takes 5-7 working days for approval. It’s crucial to ensure all information is accurate and documents are complete to avoid rejection.
Step 6: Receive Certificate of Incorporation along with TAN & PAN Upon successful approval of the SPICe+ form by the RoC, you will receive the Certificate of Incorporation, which legally confirms your company’s existence. Your Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) will also be assigned at this time. With this certificate, your private limited company is officially registered, marking the beginning of your business operations. It is imperative to keep this document secure, as it is a vital requirement for future compliance and legal matters.
Post-Registration Requirements
Once your private limited company is successfully registered, you must complete the following compliance requirements:
- Open a Bank Account: Establish a current bank account under the company’s name to handle all financial activities. You’ll need documents such as the Certificate of Incorporation, Memorandum of Association (MoA), Articles of Association (AoA), and a board resolution to open the account.
- Issue Share Certificates: In accordance with the Companies Act, share certificates must be issued to all shareholders within two months of the company’s incorporation.
- GST Registration: If your business anticipates exceeding the specified turnover threshold, you are required to register for Goods and Services Tax (GST).
- Commencement Certificate: You are required to apply for a Commencement Certificate within 180 days from your company’s incorporation date.
- Auditor Appointment: It is mandatory to appoint an auditor for your company.
- Annual Compliances: Fulfill all yearly filing obligations, which include submitting annual returns and financial statements to the Ministry of Corporate Affairs (MCA) and holding annual general meetings.
Tax2fin also offers support for these post-registration tasks, helping ensure your company maintains compliance and operates efficiently.
Cost of Pvt Ltd Company Registration
The total expense for registering a private limited company in India is influenced by several elements, such as the company’s authorized capital, the applicable state stamp duty, and the fees charged by professionals. A typical breakdown of these costs is as follows:
- Government Fees: These fees cover various essential aspects like Director Identification Numbers (DINs), company name approval, incorporation, and the allocation of PAN and TAN. The specific incorporation fee is dependent on the authorized capital; for instance, a company with an authorized capital of ₹1 lakh typically incurs a government fee of approximately ₹1,000 for incorporation.
- Stamp Duty: This charge varies by state and is calculated based on the company’s authorized capital. For example, in Rajasthan, the stamp duty for the Memorandum of Association (MoA) is ₹1,000, and for the Articles of Association (AoA), it is ₹500.
- Professional Fees: These are the charges levied by consultants or service providers, like Tax2Fin, for managing the entire registration process. Our pricing is competitive, ensuring clients receive expert guidance and value for their investment.
How Tax2Fin helps you in this Company Registration Process?
When you choose our services, you’ll be assigned a dedicated personal manager who will provide comprehensive guidance throughout the entire process, guaranteeing a smooth and effortless experience.
Our services encompass:
- Company Name Search and Approval: We assist you in selecting a distinctive company name and managing the approval procedure.
- Obtaining DIN (for up to 2 Directors): We support directors in their applications for Director Identification Numbers.
- Drafting of MoA & AoA: Our team of legal professionals meticulously drafts your Memorandum of Association (MoA) and Articles of Association (AoA) to ensure full compliance with Ministry of Corporate Affairs (MCA) regulations.
- Filing of SPICe+ Form: We take care of preparing and submitting the integrated SPICe+ incorporation form on your behalf.
- Getting Certificate of Incorporation, PAN & TAN: We ensure you receive all essential documents, including your Certificate of Incorporation, Permanent Account Number (PAN), and Tax Deduction and Collection Account Number (TAN), after successful registration.
Furthermore, we provide a range of post-registration services, such as Goods and Services Tax (GST) registration, assistance with opening a bank account, and comprehensive compliance management, all designed to help your business flourish.
FAQs
What are the expenses associated with registering a private limited company in India?
The cost varies based on authorized capital and state stamp duty. Government fees typically start from ₹1,000, with additional stamp duty (e.g., ₹5,510 in Rajasthan). Tax2Fin’s fees for private limited company registration begin at ₹5,100, covering all essential services.
Could you explain the procedure for registering a private limited company?
The registration process involves obtaining Director Identification Numbers (DINs) and Digital Signature Certificates (DSCs), securing name approval, drafting the Memorandum and Articles of Association (MoA & AoA), and submitting the SPICe+ form. Upon approval, you receive the Certificate of Incorporation, completing the streamlined process via the MCA portal.
What documents are required for private limited company registration?
Key documents required include identity proof (like PAN/Aadhaar) and address proof (utility bill) along with a recent photo for directors. Additionally, proof of the registered office (such as a rent agreement or utility bill) is needed. All these documents are submitted during the online registration process.
How does one go about registering a private limited company in India?
To register, you must obtain DINs and DSCs, get your company name approved, and then draft the MoA and AoA. The final step involves filing the SPICe+ form and receiving the Certificate of Incorporation. Services like Tax2Fin can simplify this entire company formation procedure.
Who is qualified to form a private limited company?
Any individual over 18 years old, including Indian residents and foreign nationals, can register a private limited company. A minimum of two directors is required, with at least one being an Indian resident, along with a minimum of two shareholders.
Is it possible to register a private limited company independently?
While it’s possible to register a private limited company independently through the MCA portal, it demands significant legal understanding and time investment. Engaging experts such as Tax2Fin can ensure a smoother and more efficient online registration process.
What is the method for registering a private limited company online?
To register online, you need to apply for DINs and DSCs, secure name approval, and draft your company’s MoA and AoA. Subsequently, you will file the SPICe+ form through the MCA portal. Tax2Fin offers comprehensive support for a seamless online company registration experience in India.