Procedure for registering a Private Ltd Company in India


What is a Private Limited company


A Private Limited Company is the most popular form of business entity used for Foreign Investors in India. Private Limited Companies are a form of incorporated business that is used to reduce exposure to debt by the owners. A Private Limited Company provides a limited liability to the shareholders of the company. It also has restrictions to ownership. The shares held by shareholders of a Private Limited Company are never offered to the public or another entity to protect both the company and shareholders from hostile takeovers or unknown investors. This type of business form is called a "closed corporation," similar to a partnership but with more formal restrictions.


Procedure for Private Limited Company

  1. A minimum of two directors are required and maximum is 8 directors.
  2. Minimum two shareholders.
  3. The number of shareholders is limited to fifty.
  4. All directors should have a Directors Registration Number (DIN) if they don’t have DIN then they have to apply and it will take one day, charges will be Rs.100.
  5. If there is DIN no then apply for the company name.
  6. You need to go with 5-6 names in the order which you prefer. If the name is not available then they go to the next one in the order you have provided. The name of the company will be approved within three days and the charges will be Rs. 500.
  7. When applying for the incorporation of the company you have to prepare the Memorandum of Association with details such as first list of directors and who all are going to be in the board, etc. It will take 6 months time and there are no charges to t=do this.
  8. Once your company has been incorporated you can open a Current account in any bank.
  9. Then you need to apply for TAN and PAN for the Company
  10. If your services are in Software related area you can apply for STPI license.


Required Documents:

    1. For Identity Proof:

·        PAN Card

·        Driving License

·        Passport

·        Voter ID Card


    1. For Residence Proof

·        Driving License

·        Passport

·        Voter ID Card

·        Telephone Bill

·        Ration Card

·        Electricity Bill

·        Bank Statement


Rules for a Private Ltd Company

  1. The right to transfer shares is restricted as per the articles of association.
  2. An invitation to the public to subscribe to any shares or debentures is prohibited.
  3. No invitation or acceptance of deposits from persons other than members, directors or their relatives is allowed.
  4. Lesser number of compliance requirements