What is Private Limited Company Registration?

Private Limited Company Registration means officially starting your business under the Companies Act, 2013. This process protects your personal money from business risks and helps attract investors.

This setup is perfect for startups and growing businesses, especially those planning to raise funds. To register, you need at least two directors and two shareholders.

Why Register a Private Limited Company?

• Get a Legal Identity: Your business gets official recognition, which builds trust with clients and banks.

• Protect Personal Money: Your personal savings are safe if the company faces any losses.

• Get Investments: You can offer shares to investors like angel investors or venture capitalists.

• Continue Business Smoothly: The company will keep running even if owners or directors change.

• Get Government Support: Enjoy tax benefits, grants, and startup schemes available to registered companies.

Laws That Govern Company Registration in India

1. Companies Act, 2013: Main law for creating and managing companies.

2. Income Tax Act, 1961: Rules about paying taxes.

3. GST Laws: Apply if your business income crosses certain limits.

4. FEMA: Manages foreign investment rules.

5. SEBI Rules: Applies if you issue shares publicly.

6. IT Act, 2000: If your business is online or digital.

Authorities Involved in Company Registration

• Registrar of Companies (ROC): Reviews your application and gives the Incorporation Certificate.

• Income Tax Department: Issues PAN and checks tax filings.

• RBI: Needed if you have foreign investors.

Types of Private Limited Companies

1. Limited by Shares: You’re only responsible for unpaid shares.
   Example: If you bought shares worth ₹1,00,000 and paid full, you’re not liable for more.

2. Limited by Guarantee: You promise to pay a certain amount if the company closes.
   Used mostly by non-profit organizations.

3. Unlimited Company: You may need to use your own money to pay debts.
   Rare and usually for family businesses.

Who Can Register a Private Limited Company?

To register, you need:

• 2 Directors (at least one must live in India for 182+ days)

• 2 Shareholders (can also be the directors)

• A Registered Office Address in India

• Up to 200 Shareholders allowed

• No minimum capital needed, but you must declare it

• Each Director must have a DIN

• Each must also get a Class 3 DSC (Digital Signature)

Documents Needed

For Directors & Shareholders:

• PAN & Aadhaar

• Passport (if foreigner)

• Photo, Email, Mobile Number

• Bank statement, Utility bill (not older than 2 months)

• Voter ID/Driver’s License

• Signature sample

For Registered Office:

• Rent agreement or property papers

• Utility bill

• NOC from the owner

Company Details:

• 3–4 name options

• Business activity details

• Capital details

• MOA & AOA drafts

• First directors’ appointment resolution

Steps to Register Your Company

1. Get DSC (Digital Signature Certificate)

   • Needed to sign forms online. Valid for 2 years.

2. Get DIN (Director Identification Number)

   • Issued automatically with SPICe+ Form.

3. Reserve Your Company Name

   • Use MCA portal. Choose 4 unique names.

4. Prepare Documents

   • MOA, AOA, office address proof, director consents, etc.

5. File SPICe+ Form Online

   • Submit all documents in PDF, pay fees.

6. Receive Certificate of Incorporation (COI)

   • Confirms your company is legally formed with CIN, PAN, and TAN.

How Much Does It Cost?

Government Charges:

• Name Reservation: ₹1,000

• Incorporation: ₹5,000 and up (based on capital)

• Stamp Duty: ₹1,000 to ₹5,000 (varies by state)

Professional Charges:

• DSC: ₹1,000–3,000

• Legal Support: ₹8,000–₹20,000

• Company Seal & Stationery: ₹500–1,500

Penalties If You Don’t Follow Rules

Benefits of a Private Limited Company

1. Separate Legal Identity: You and the company are different legally.

2. Limited Liability: Your personal money is safe.

3. Builds Trust: With banks, clients, and investors.

4. Easier to Get Loans or Funding

5. Easy to Sell Shares or Add Investors

6. Continues Even After You Leave the Company

7. Eligible for Government Schemes and Startup Benefits

Disadvantages to Keep in Mind

1. More Rules to Follow

2. Higher Costs

3. Financial Info is Public

4. Share Transfer May Be Limited

5. Harder to Close the Company

6. Decisions Take Time (Board Meetings Needed)

Private Limited vs Other Business Types

After Registration – What’s Next?

You must follow these steps every year:

Annual Filings

• MGT-7 (Annual Return)

• AOC-4 (Financial Statement)

Meetings

• 1st Board Meeting within 30 days

• Minimum 4 Board Meetings per year

• Annual General Meeting (AGM) every year

Statutory Registers

• Members, Directors, Charges, Minutes Book

Taxes

• Income Tax returns

• GST filing (if registered)

• TDS deduction and returns

Certificate of Incorporation (COI)

This document proves your company exists legally. It includes:

• Company Name

• CIN (Registration Number)

• Date of Incorporation

• Registered Address

You’ll need the COI for:

• Opening a bank account

• Getting PAN/TAN

• Signing contracts

• Getting licenses

• Raising funds

How to Get Your Company Registration Number?

1. Get DSC and DIN

2. Reserve Company Name

3. Fill SPICe+ Form on MCA Portal

4. Submit all documents and pay fees

5. MCA will verify

6. Receive Certificate of Incorporation with your CIN

How to Download COI (Certificate of Incorporation)?

1. Go to www.mca.gov.in

2. Log in to your account

3. Go to ‘MCA Services’ → ‘Get Certified Copies’

4. Search your company name or CIN

5. Pay the small fee (if any)

6. Download the PDF file

How to Check If Your Company is Registered?

1. Visit www.mca.gov.in

2. Go to ‘MCA Services’ → ‘View Company/LLP Master Data’

3. Enter company name or CIN

4. Fill the captcha

5. Submit and see your company details