Private Limited Company Registration – Universal Business Consultants

How to Register a Private Limited Company in India: A Complete Guide

Starting a private limited company in India is one of the most popular ways to establish a business. It offers limited liability, legal recognition, and increased credibility, making it an attractive choice for entrepreneurs and startups. Here’s a detailed step-by-step guide to help you understand the process of registering a private limited company with the Ministry of Corporate Affairs (MCA).

What is a Private Limited Company?

A private limited company is a business entity privately held by shareholders. It limits the liability of its members to their shareholdings and restricts the transferability of shares. It is governed by the Companies Act, 2013, and regulated by the Ministry of Corporate Affairs.

Key Features:

- Minimum 2 and maximum 200 members.

- Requires at least 2 directors (maximum of 15).

- Limited liability for shareholders.

- Separate legal entity.

Perpetual succession.

Step-by-Step Process to Register a Private Limited Company

Step 1: Obtain a Digital Signature Certificate (DSC)

A Digital Signature Certificate (DSC) is required to file electronic documents with the MCA. Here’s how you can get it:

- Approach a certified DSC issuing authority.

- Submit identity proof (PAN card, Aadhaar card) and address proof (passport, voter ID, utility bills).

- Complete the verification process and receive the DSC.

Step 2: Apply for a Director Identification Number (DIN)

A Director Identification Number (DIN) is mandatory for anyone intending to become a director of a company. Steps include:

- Filing Form DIR-3 (if not applying through SPICe+).

- Submitting documents like PAN card, Aadhaar card, and passport-sized photographs.

- DIN will be issued after verification by the MCA.

Step 3: Choose a Unique Name for Your Company

Selecting a unique and meaningful name is crucial. It must adhere to the MCA’s naming guidelines:

- Avoid names that are identical to existing companies or trademarks.

- Include a term that reflects your business activity.

- Ensure the name ends with “Private Limited.”

You can reserve the name through the RUN (Reserve Unique Name) service or directly within the SPICe+ form.

Step 4: Prepare the Required Documents

Compile all necessary documents for registration:

For the Company:

- Memorandum of Association (MoA): Outlines the company’s objectives.

- Articles of Association (AoA): Details the rules and regulations.

- Proof of registered office address: Rental agreement, property tax receipt, or utility bill.

For Directors and Shareholders:

- PAN card.

- Aadhaar card.

- Passport-sized photographs.

- Address proof (bank statement, electricity bill, etc.).

Step 5: File the SPICe+ Form

The SPICe+ (Simplified Proforma for Incorporating a Company Electronically Plus) form is a comprehensive online form for company incorporation. It covers:

1. Part A: Name reservation.

1. Part B: Incorporation, PAN/TAN application, GST registration (optional), EPFO, ESIC, and bank account opening.

Steps to file the SPICe+ form:

- Log in to the MCA portal and access the SPICe+ form.

- Fill in the details of the company, directors, and shareholders.

- Upload the required documents.

- Pay the applicable registration fees.

- Submit the form.

Step 6: Issue of Certificate of Incorporation (CoI)

Once the application is approved, the Registrar of Companies (RoC) issues the Certificate of Incorporation (CoI). This document includes:

- Company Identification Number (CIN).

- Date of incorporation.

- PAN and TAN details of the company.

The company is now officially registered and can commence operations.

Key Benefits of Registering as a Private Limited Company

- Limited Liability: Shareholders are only liable for the unpaid value of their shares.

- Separate Legal Entity: The company is distinct from its owners.

- Credibility: Easier to attract investors and secure loans.

- Perpetual Succession: The company’s existence is not affected by the death or departure of its members.

Frequently Asked Questions (FAQs)

Q1. How much does it cost to register a private limited company in India? The cost depends on factors like authorized capital, professional fees, and government fees. On average, it ranges between INR 5,000 and INR 25,000.

Q2. Can a single person start a private limited company? No, a private limited company requires at least two directors. However, you can start a One Person Company (OPC) if you are the sole owner.

Q3. How long does the registration process take? Typically, it takes 7-15 working days, depending on document verification and approval timelines.

How UBC Can Help

At Universal Business Consultants (UBC), we specialize in making the company registration process seamless and stress-free. Our experts handle everything from document preparation to filing, ensuring quick and hassle-free incorporation. Contact us today at UBC Online to get started!