Private Limited Company

A private limited company can be a small or large business. A private limited company has limited liability and often these types of business have ‘Ltd’ after the business name.

What Types of Businesses Should Register As a Private Limited Company?

Private limited company is the most common type of legal entity that is preferred by millions of Indian Entrepreneurs and popular startups.

A Private Limited Company (PLC) is one of the most common types of legal entity in India. Private Limited Companies are governed by the Companies Act, 2013 and require a minimum of 2 Directors and 2 Shareholders with one of the Directors being an Indian Resident and Indian Citizen.

What is a Partnership Deed?

An agreement that defines the terms and conditions among the various parties involved in a partnership is termed a partnership deed. The partnership deed format covers the following details:

  1. A business that is being or to be undertaken by the firm
  2. The Duration for which the partnership is being made, for example, a limited period, say 5-10 years, or a specific project
  3. Details about the partners, like their names and addresses
  4. The name of the partnership
  5. The date from when the firm commenced its operations
  6. Investments made by each partner of the firm
  7. The ratio of profit and loss that is to be shared among the partners
  8. The rules and regulations pertaining to the removal or intake of partners
  9. Obligations and duties of the partners involved
  10. The type of partnership

Checklist for Registering a Company in India

As defined by the Companies Act 2013, we must guarantee that the checklist requirements are met.

Two Directors:
A private limited company must have at least two directors, with a maximum of fifteen. A minimum of one of the company’s directors must be a resident of India.

Unique Name
The name of your business must be unique. The suggested name should not match with any existing companies or trademarks in India.

Minimum Capital Contribution:
There is no minimum capital amount for a company. A company should have an authorized capital of at least ₹1 lakh.

Registered Office:
The registered office of a company does not have to be a commercial space. Even a rented home can be the registered office, so long as an NOC is obtained from the landlord.

How to Register a Company

Company registration in India benefits startups since it offers them an advantage over those who have not registered. The process of registering your company is complex and involves many compliances. 

  • Step 1: Obtain DSC
  • Step 2: Apply for the DIN
  • Step 3: Application for the name availability
  • Step 4: Submission of MoA and AoA to register a private limited company
  • Step 5: Apply for the PAN and TAN of the company
  • Step 6: RoC issues a certificate of incorporation with a PAN and TAN

Documents Required for Company Registration

In India, private limited company registration cannot be done without proper identity and address proof. Listed below are the documents accepted by the MCA for the online company registration process:

Identity and Address Proof

    • Scanned copy of PAN card or passport (foreign nationals & NRIs)
    • Scanned copy of voter ID/passport/driving licence
    • Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
    • Scanned passport-sized photograph specimen signature (blank document with signature [directors only])

Registered Office Proof

    • Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
    • Scanned copy of notarized rental agreement in English
    • Scanned copy of no-objection certificate from the property owner
    • Scanned copy of sale deed/property deed in English (in case of owned property)

Note: Your registered office need not be a commercial space; it can be your residence too.

Why Parekh Consultancy ?

Access To Experts
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Realistic Expectations
By handling all the paperwork, we ensure a seamless interactive process with the government. We provide clarity on the incorporation process to set realistic expectations.

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