Private Limited Company (Pvt ltd) Registration

A Private Limited Company is a type of business entity where ownership is divided among shareholders who hold shares proportional to their investment.

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Overview

A Private Limited Company is a type of business entity where ownership is divided among shareholders who hold shares proportional to their investment. This corporate structure has become increasingly popular among Indian entrepreneurs due to its flexibility and legal safeguards. A Private Limited Company offers a secure and adaptable legal framework for investments and operations. For registration, the following basic requirements must be met:

  • At least one Indian resident must be a director.
  • A minimum of two shareholders is required.
  • The company must have a registered office address.

Requirements of Private Limited Company Registration

To register a Private Limited Company in India, you need to fulfill the following requirements as per the Companies Act 2013:

  • Directors: At least two directors are required, with a maximum of fifteen. One director must be a resident of India.
  • Company Name: The name must be unique and not similar to any existing business name.
  • Capital: There is no minimum capital requirement, though an authorized capital of INR 10,000 is recommended.
  • Office: The company’s registered office can be located anywhere, including rented premises.

Advantages of Private Limited Company Registration

Registering a Private Limited Company offers several benefits:

  • Separate Legal Entity: The company is recognized as a separate legal entity, meaning shareholders and directors are not personally liable for the company’s debts.
  • Limited Liability: Shareholders’ liability is limited to the amount of their investment in the company.
  • Uninterrupted Existence: The company continues to exist independently of changes in ownership or management.
  • Fundraising Options: Private Limited Companies can raise funds through various sources including shareholders, venture capitalists, banks, and financial institutions.

Some disadvantages of a partnership firm include:

Documents Required For Private Limited Company Registration

Required Documents for Company Registration & Incorporation.


The company registration documents needed for a private limited company comprise legal and financial documents, including the following:

  • ID Proof – PAN card for Indian directors and Passport for foreign directors.
  • Passport-size photos of the directors.
  • Address proof of directors – Driving license, Aadhaar card, Ration card, Residence card (for foreign directors).
  • Sample signatures of directors.
  • Company Incorporation Certificate.
  • Official address proof – Bank Statement or Utility Bills (electricity).
  • Registered office proof:
  • Copy of Sale Deed – If the property is self-owned.
  • NOC from property owner – If the property is rented.
  • A self-declaration confirming directorship in other companies.

Process of Private Limited Company Registration

The process for registering a Private Limited Company involves several steps:

  • Obtain a Digital Signature Certificate (DSC): All proposed directors and shareholders must have a valid DSC.
  • Apply for Director Identification Number (DIN): Directors need to apply for DIN using Form DIR-3.
  • Choose and Reserve a Company Name: Submit the SPICe+ Form for name approval.
  • File SPICe+ Form: This form includes details about directors, shareholders, registered office, and requested PAN/TAN.
  • Registrar Inspection: The Registrar of Companies reviews the submitted documents. Corrections can be made if required.
  • Certificate of Incorporation: After approval, a Certificate of Incorporation is issued along with a Corporate Identification Number (CIN).

Why Kickstart Business Advisors?

Registering a Private Limited Company involves navigating through various legal requirements and documentation. Kickstart Business Advisors offers expert services to simplify this process. Our team of experienced Lawyers, Chartered Accountants (CA), and Company Secretaries (CS) will guide you through every step, ensuring compliance with all regulations and efficient registration. With Kickstart Business Advisors, you can focus on your business while we handle the complexities of incorporation.

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