Private Limited Company Incorporation

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Private Limited Company Incorporation

Overview

This type of company offers limited liability for its shareholders with certain restrictions placed on the ownership. An LLP has partners, who own and manage the business. Whereas in private limited company registration, directors may be different from shareholders.

STEPS FOR INCORPORATION OF A PRIVATE LIMITED COMPANY

STEP 1: Acquiring Digital Signature Certificates (DSC)

  • All directors and shareholders of the company must acquire a Digital Signature Certificate (DSC).
  • The DSC will be used for all documents filed with the Ministry of Corporate Affairs (MCA).

Step 2: Reserving a company name

  • Choose a unique name for the company.
  • Fill in the SPICe+ Part A form with the top two-name choices.
  • The form is used to reserve a unique company name for the new private limited company.

Step 3: Submission of Company Incorporation Form

Draft and file an Incorporation Form which includes a Memorandum of Association (MOA) and Articles of Association (AOA).

Checklist for Registration

Key Features

2 DSC
Company Incorporation Certificate
Name Approval
PAN & TAN Registration
Share Certificates
MOA & AOA
Support in Opening Bank Account

Frequently Asked Questions

A private limited company is a type of business structure in India that offers limited liability protection to its shareholders and has a separate legal identity from its owners. It is governed by the Companies Act, 2013.

A minimum of two directors are required to incorporate a private limited company in India. One of the directors must be an Indian resident.

The time required to incorporate a private limited company depends on various factors, including the workload of the Registrar of Companies and the accuracy of the documents submitted. On average, it takes around 10-15 working days to complete the incorporation process.

Yes, a private limited company can have a minimum of one shareholder. However, there must be at least two directors.

Private limited companies are required to fulfil certain annual compliance requirements, such as conducting annual general meetings, filing annual financial statements, and annual returns with the Registrar of Companies, maintaining statutory registers, and complying with other applicable laws.

Yes, a private limited company can be converted into another type of business structure, such as a public limited company or a limited liability partnership (LLP), subject to the provisions of the Companies Act and applicable regulations.

Private limited companies are subject to corporate income tax in India. The current corporate tax rate is 25% for companies with an annual turnover up to INR 400 crore (approximately USD 56 million). Additionally, goods and services tax (GST) and other applicable taxes may also be applicable based on the nature of the company's activities.

Yes, a private limited company can change its name after incorporation. The name change process involves obtaining approval from the Registrar of Companies (RoC) and making the necessary amendments to the company's Memorandum of Association (MoA) and Articles of Association (AoA).

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