Private Limited Company Registration: Process, Fees, Eligibility

Starting a business is a big dream for many entrepreneurs in India. Among various business structures, a Private Limited Company (PLC) is one of the most popular options. It offers benefits like limited liability, better credibility and easy access to funding. This blog will explain the Private Limited Company Registration process, Registration fees, documents, the benefits of Private Limited Company , also let you know why you should choose CRSPL Business Consultants to help you register your company.

Eligibility for Private Limited Company Registration

To register a private limited company in India, you must meet the following eligibility criteria:

1. Minimum Two Directors: A PLC must have at least two directors. One of them must be an Indian resident.
2. Maximum 200 Members: A PLC can have up to 200 shareholders or members.
3. Unique Company Name: The company name should be unique and not similar to existing trademarks or company names.
4. Registered Office Address: You must have a valid registered address in India to act as the company’s registered office.
5. Director Identification Number (DIN): All directors must have a DIN provided by the Ministry of Corporate Affairs, viz. (MCA).
6. Digital Signature Certificate (DSC): At least one director must have a DSC to sign online forms.

Private Limited Company Registration Process

The process of registering a Private Limited Company in India involves these simple steps:

1. Get Digital Signature Certificates (DSC): Each director needs a DSC to sign documents digitally.
2. Apply for Director Identification Number (DIN): File an application to get DIN for all directors who don’t already have one.
3. Name Reservation through RUN or SPICe+ Part A: Submit a request either through the MCA’s Reserve Unique Name (RUN) service or directly within SPICe+ Part A to check and reserve your preferred company name. Reserving the name in SPICe+ Part A is recommended for smoother processing as per latest MCA guidelines.
4. Draft MOA & AOA: Prepare the Memorandum of Association (MOA) and Articles of Association (AOA), which define the company’s rules and objectives.
5. Filing SPICe+ Form: Fill and submit the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form along with e-MOA and e-AOA. SPICe+ covers company incorporation, PAN, TAN, EPFO, ESIC, GST, and bank account opening.
6. Obtain Certificate of Incorporation: After MCA verification, you will receive the Certificate of Incorporation, which officially establishes your Private Limited Company.
7. Apply for PAN and TAN: PAN and TAN are automatically applied for during the SPICe+ process.
8. Open Company Bank Account: Use the Certificate of Incorporation and PAN to open a company bank account in the company’s name.

Private Limited Company Registration Fees

The cost of Private Limited Company registration depends on various factors like professional fees, state stamp duty and number of directors. On average:

• Government Fees: ₹7,000 – ₹10,000 (may vary by state and authorized capital).
• Professional Fees: ₹5,000 – ₹15,000 (varies by consultant or service provider).
• Total Estimated Cost: ₹12,000 – ₹25,000 for most small companies.

Note: The exact fees may differ based on company size, number of directors, and professional services opted.

Required Documents for Private Limited Company Registration

You need to collect and submit the following documents for Private Limited Company registration:

For Directors and Shareholders:

• PAN Card (mandatory for Indian nationals).
• Passport (mandatory for foreign nationals).
• Address Proof (Aadhar card, Voter ID, or Driving License).
• Residential Proof (latest bank statement or utility bill, not older than 2 months).
• Passport-size photographs.
• Digital Signature Certificates (DSC).

Note for Foreign Nationals: If you are a foreign national director or shareholder, your documents may need to be apostilled or notarized in your home country, as required by Indian regulations.

For Registered Office:

• Electricity Bill or Rent Agreement if rented.
• No Objection Certificate, refer as (NOC) from the property owner.

Benefits of Private Limited Company Registration

Registering your business as a Private Limited Company in India offers many advantages:

1. Limited Liability Protection: Shareholders are liable or responsible only to the limit of their shareholding. Their personal assets remain protected.
2. Separate Legal Entity: A PLC has its own legal identity, distinct from its owners. It can own property, sue, or be sued.
3. Credibility and Trust: A registered company builds trust with customers, suppliers, investors, and financial institutions.
4. Easy Funding: Venture capitalists and investors prefer investing in PLCs, which makes it easier to raise capital.
5. Perpetual Succession: The company continues to be existed even if shareholders or directors change or pass away.
6. Ownership Flexibility: Shareholders can easily transfer shares, making it easier to bring in new investors or partners...!

Why Choose Us?

Registering a Private Limited Company involves many legal formalities. Choosing our professional service ensures:

• Expert Guidance: Our experienced team members will guide you through every step.
• Affordable Pricing: Transparent and competitive pricing with any hidden charges.
• Fast Process: We ensure speedy registration so you can start your business without delays.
• All-in-One Service: From DSC to PAN, we handle it all so you don’t have to worry about paperwork.
• Post-Incorporation Support: We help you with GST registration, accounting, compliance, and more.

Let us help you make your entrepreneurial journey smooth and hassle-free.

Conclusion

Registering a Private Limited Company is the best choice if you want to start a business in India with scalability, credibility and limited liability. It offers numerous benefits over other business structures and creates a strong foundation for your enterprise. By choosing the exemplary professional service, you can complete the registration process smoothly and focus on growing your business. If you're ready to start your journey as a private limited company owner, we're here to assist you every step of the way. Get in touch with us today to turn your business idea into a reality...! Let us help you make your entrepreneurial dream come true with flying colours with expert support, hassle-free documentation, and dedicated post-registration assistance to ensure long-term success.

FAQS

Q1. How long does it take to register a Private Limited Company in India?

It usually takes 7-12 working days to complete the entire registration process, depending on document submission and MCA approvals.

Q2. Can a salaried person become a director in a Private Limited Company?

Yes, if you are a salaried person then you can also become a director in a PLC. However, they should check their employment agreement for any restrictions.

Q3. What is the minimal capital requirement for registering a Private Limited Company?

There is no minimum paid-up capital requirement. A company can be registered even with ₹1 as paid-up capital.