What is private limited?
A Private Limited Company (Pvt Ltd) in India protects owners’ personal assets from business debts and operates as a separate legal entity. It requires 2-200 shareholders and at least 2 directors, with shares not publicly traded and needing approval for transfer. The company continues even if owners change or pass away. It must be registered, hold regular meetings, and file annual financial reports, making it ideal for small to medium businesses seeking legal protection and stability.
How to register private limited company?
The process can be complex, but our experts can guide you through every step. Here’s a detailed overview:
Step 1: Obtain Digital Signature Certificate (DSC)
- Purpose: Digital signatures are required to file the forms for company formation, which is done online.
- How to Obtain: You must obtain the digital signature certificates from government-recognized certifying authorities. The cost varies depending on the certifying authority.
- Requirement: Class 3 category of DSC is mandatory for all subscribers and witnesses in the Memorandum of Association (MoA) and Articles of Association (AoA).
Step 2: Apply for Director Identification Number (DIN)
- Purpose: DIN is an identification number for a director and is required for anyone who wants to be a director in a company.
- How to Obtain:
- Option 1: File Form DIR-3 if you want to become a director in an existing company.
- Option 2: For new companies, apply for DIN through the SPICe+ form for up to three directors.
- Option 3: Use a service like ClearTax to procure DIN for you. Up to 2 DINs are covered in the ClearTax Private Limited Company registration plan.
Step 3: Name Approval
- Purpose: Secure approval for your company name.
- How to Obtain:
- Option 1: Reserve the name via Part-A of the SPICe+ Form, allowing two proposed names and one re-submission.
- Option 2: Submit Part-A and Part-B of the SPICe+ Form together for name approval and incorporation. This gives you two chances to get the name approved without extra charges.
Step 4: Form SPICe+ (INC-32)
- Purpose: Form SPICe+ consolidates various steps into a single application, simplifying the registration process.
- Incorporation Steps:
- Apply for DIN (if not already obtained).
- Reserve the company name.
- Incorporate the new company.
- Apply for PAN and TAN.
- Apply for EPFO, ESIC, and Professional Tax registrations (mandatory in Maharashtra).
- Open a bank account for the company.
- Optionally apply for GST registration.
- Process: Complete and submit the form online. Download the form in PDF format, digitally sign it, and submit it for incorporation.
Step 5: e-MoA (INC-33) and e-AoA (INC-34)
- Purpose: The electronic Memorandum of Association and Articles of Association outline the company’s charter and internal rules.
- Process: Submit these forms online, linked with the SPICe+ form. Both forms must be digitally signed by subscribers.
Step 6: PAN and TAN Application
- Purpose: Apply for the company’s PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) through the SPICe+ form.
- Process: The system auto-generates these forms after submitting the SPICe+ form. Once approved, you’ll receive the Certificate of Incorporation, PAN, and TAN via email from the Ministry of Corporate Affairs (MCA).
Final Steps
- Approval: If all details are correctly filled and required documents are provided, MCA will approve the registration.
- CIN Allocation: You’ll receive a Corporate Identity Number (CIN), which you can track online on the MCA portal.
Our experts can handle the entire registration process, ensuring compliance and smooth setup for your Private Limited Company.
Just click here and sit back and relax, we’ll handle everything for you.
FAQ's
A Private Limited Company is a type of business entity where the owners' liability is limited to their shares, it has a separate legal entity, and its shares are not publicly traded.
Registering as a Pvt Ltd company provides limited liability protection, allows for separate legal entity status, offers easier access to funding, and provides greater credibility to the business.
- Obtain Digital Signature Certificate (DSC)
- Apply for Director Identification Number (DIN)
- Reserve company name
- File SPICe+ form for incorporation
- Submit e-MoA and e-AoA
- Apply for PAN and TAN
You can obtain a DSC from government-recognized certifying authorities. The process typically takes a couple of days and involves a fee.
You can reserve the company name via the SPICe+ form, which allows two proposed names and one re-submission. You can also submit the name approval along with the incorporation application.
The entire process, including name approval and incorporation, typically takes around 2-3 days if all documents are correctly submitted and there are no discrepancies.
While it is possible to register on your own, the process can be complex. Using expert services can simplify the process and ensure all compliances are met.