Private Limited & Company Registration
Registering a Private Limited Company (Pvt. Ltd.) is one of the most popular and trusted forms of business structures in India and globally. It offers a separate legal identity, limited liability for owners, and improved credibility, making it an excellent choice for startups, SMEs, and businesses seeking investment.
Why Choose a Private Limited Company?
- Separate Legal Identity – The company is distinct from its owners.
- Limited Liability – Shareholders’ liability is limited to their shareholding.
- Ease of Fundraising – Preferred by investors, venture capitalists, and banks.
- Business Credibility – Increases trust among clients, partners, and stakeholders.
- Perpetual Existence – Continues even if shareholders or directors change.
Step-by-Step Process of Company Registration
| Step |
Process |
Details |
| 1. |
Digital Signature Certificate (DSC) |
Mandatory for directors & shareholders to sign documents electronically. |
| 2. |
Director Identification Number (DIN) |
Unique identification number for company directors. |
| 3. |
Name Approval |
Apply to MCA (Ministry of Corporate Affairs) for a unique company name. |
| 4. |
Drafting Documents |
Prepare Memorandum of Association (MoA) & Articles of Association (AoA). |
| 5. |
Filing with MCA |
File SPICe+ Form (INC-32), MoA (INC-33), and AoA (INC-34). |
| 6. |
Certificate of Incorporation |
Issued by MCA with CIN (Corporate Identity Number). |
| 7. |
PAN & TAN Application |
Automatically generated with incorporation. |
| 8. |
Bank Account Opening |
Open a current account in the company’s name. |
Documents Required
- PAN Card & Aadhaar Card of all directors/shareholders
- Passport-size photographs
- Address proof (Electricity Bill / Telephone Bill – not older than 2 months)
- Rent agreement (if office is rented)
- NOC from landlord
- Utility bill of registered office address
Compliance After Registration
- Appointment of Auditor – Within 30 days of incorporation.
- Issue of Share Certificates – Within 60 days of incorporation.
- Statutory Registers – Must be maintained.
- Filing of Annual Returns & Financial Statements – With MCA.
- Income Tax Returns – Yearly filing.
Comparison with Other Business Structures
| Feature |
Private Limited |
LLP |
Partnership |
Proprietorship |
| Legal Status |
Separate Legal Entity |
Separate Legal Entity |
No |
No |
| Liability |
Limited |
Limited |
Unlimited |
Unlimited |
| Fundraising |
Easy (Equity, VC) |
Moderate |
Difficult |
Very Difficult |
| Compliance |
Moderate |
Low |
Low |
Very Low |
| Ideal For |
Startups, SMEs, Investors |
Professionals, Consultants |
Small family businesses |
Solo entrepreneurs |
Timeframe & Cost
- Time Required: 7 – 15 working days (approx.)
- Cost: Depends on professional charges + Government fees
Benefits in a Nutshell
- Credibility boost
- Limited liability protection
- Attract investors easily
- Structured growth & expansion
- Legal recognition under Companies Act, 2013
