Private Limited Company Registration
At Nikitha & Associates, we help you set up a Private Limited Company—the most preferred and flexible business structure for startups and growing enterprises in India.
Key Advantages of a Private Limited Company
- Limited Liability Protection: Safeguards the personal assets of directors from business liabilities.
- Enhanced Credibility: Boosts trust and professionalism in the eyes of clients, banks, and investors.
- Easier Access to Funding: Ideal structure for raising capital through equity or loans.
- Startup-Friendly: Recognized as the most suitable model for startups by the government.
- Attractive to Investors: Preferred structure for venture capital and angel investments.
Basic Requirements for Registration
- A minimum of two directors and two shareholders
- At least one director must be a resident of India
- No minimum capital is required to incorporate
- Up to fifteen directors allowed under law
Introduction
A Private Limited Company is one of the most popular and widely adopted business structures in India, especially ideal for small to medium-sized enterprises. However, the number of shareholders in such companies is restricted to a maximum of 200.
Once incorporated, the company acquires a distinct legal identity—separate from its directors and shareholders. This legal status ensures the continuity of the business even in the event of a director’s or shareholder’s demise, making it a stable and reliable business form.
Registering a Private Limited Company is a critical step in establishing a professional business framework. The process can be efficiently handled by legal experts or through the official Ministry of Corporate Affairs (MCA) portal.
The registration and governance of Private Limited Companies are guided by the Companies Act, 2013, with the Ministry of Corporate Affairs serving as the overseeing authority.
Reasons to Register a Private Limited Company
- Limited Liability Protection
- Separate Legal Entity
- Perpetual Existence
- Enhanced Credibility and Professionalism
- Easier Access to Funding
- Potential Tax Advantages
- Flexibility in Ownership and Management
- Brand Protection and Recognition
Requirements for Incorporation of a Private Limited Company
Companies Act, 2013 has listed the following requirements for the incorporation of a Pvt. Ltd. Company
- Minimum directors and shareholders
- Director Identification Number (DIN) and Digital Signature Certificate (DSC)
- Company name
- Registered office address
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Capital
- Mandatory declarations and forms
- Compliance and reporting
Basic Information Required
- Directors and shareholders
- Number of Directors & Shareholders: A minimum of two directors and two shareholders are required for a Private Limited company.
- Residential Status: At least one director must be a resident of India, defined as someone who stayed in India for a minimum of 182 days in the previous calendar year.
- Identification: All proposed directors and shareholders must have a Permanent Account Number (PAN) card. For foreign nationals, a passport is required and must be apostilled or notarized depending on the country of origin.
- Proof of Identity & Address: Aadhaar Card, Voter ID, Passport, or Driving License are accepted for identity proof. For address proof, a recent bank statement, electricity bill, telephone bill, or mobile bill (not older than 2 months) is needed.
- Company name and capital
- Company Name: The name must be unique and not similar to existing registered companies or trademarks. It must end with “Private Limited”.
- Capital: There’s no minimum paid-up capital requirement, as per the Companies Act, 2013. However, a nominal capital structure must be defined.
- Registered office address
- A registered office address in India is mandatory for official correspondence.
- It can be a commercial or residential location, but not an empty plot or virtual office.
- Proof of address is required: sale deed/property deed if owned, or a rental agreement and NOC from the property owner if rented. A recent utility bill (not older than two months) is also necessary.
- Other key documents and information
- Memorandum of Association (MOA) & Articles of Association (AOA): These documents outline the company’s objectives and internal rules.
- Digital Signature Certificate (DSC) & Director Identification Number (DIN): All directors and subscribers must obtain a DSC and DIN for digital signatures and identification purposes.
- Business Activities: Clearly define the company’s main business objectives and activities.
- Contact Information: Valid email addresses and phone numbers for directors and shareholders are required.
- Post-registration requirements
- Opening a company bank account.
- Registering for GST if the turnover threshold is met.
- Obtaining other industry-specific licenses or permits if required.
By gathering and preparing this basic information and the necessary documentation, you can efficiently proceed with the company registration process in Hyderabad. Remember that adhering to the requirements set by the MCA and other authorities is crucial for smooth and successful registration.
