How to Register a Private Limited Company in India (2024)

Why Choose a Private Limited Company?

A Private Limited Company (Pvt Ltd) is the most popular business structure for startups and SMEs in India. It offers limited liability to its shareholders, a separate legal identity, perpetual succession, and easier access to venture capital and bank funding.

Unlike a sole proprietorship or partnership, the personal assets of shareholders are not at risk if the company incurs debts — liability is limited to the amount invested in shares.

Eligibility Requirements

• Minimum 2 directors (at least one must be an Indian resident)
• Maximum 200 shareholders
• Minimum authorised share capital: ₹1 lakh (no minimum paid-up capital since 2015)
• At least one director must have a DIN (Director Identification Number)
• A registered office address in India

Documents Required

For Directors/Shareholders:

• PAN card (mandatory for Indian nationals)
• Aadhaar card or Passport (for address proof)
• Passport-size photograph
• Specimen signature

For Registered Office:

• Electricity bill or bank statement (not older than 2 months)
• Rent agreement + NOC from owner (if rented), or ownership documents

Step-by-Step Incorporation Process

1. Obtain DSC: Apply for a Digital Signature Certificate (Class 3) for all proposed directors. Takes 1–2 days.
2. Apply for DIN: Director Identification Number is obtained via SPICe+ form filing. Issued instantly for Indian citizens with valid Aadhaar.
3. Name Reservation (RUN): Apply for up to 2 name choices via the Reserve Unique Name (RUN) service on MCA21 portal. Approval takes 1–2 working days.
4. Draft MOA & AOA: Memorandum of Association (objects of the company) and Articles of Association (internal governance rules) are drafted by a CA/CS.
5. File SPICe+ Form: Submit the integrated incorporation form on MCA21 with all attachments — MOA, AOA, office proof, declarations.
6. PAN & TAN Application: Applied simultaneously with SPICe+ form — no separate application needed.
7. Certificate of Incorporation: Issued by the Registrar of Companies (RoC). Contains your CIN (Corporate Identity Number).

Timeline and Fees

Post-Incorporation Compliance

• Open a company bank account within 30 days
• File INC-20A (declaration of commencement of business) within 180 days
• Hold first Board Meeting within 30 days of incorporation
• File Annual Return (MGT-7) and Financial Statements (AOC-4) every year
• Maintain statutory registers (register of directors, shareholders, etc.)

Common Mistakes to Avoid

• Choosing a name too similar to an existing company or trademark
• Using a residential address without a proper NOC
• Not appointing a Company Secretary if turnover exceeds ₹5 crore
• Missing the INC-20A filing deadline (attracts heavy penalties)

Need expert help? EaseVyapar's CA team handles your entire incorporation — from DSC to CIN — in just 7 working days.