What are the prerequisites to incorporate a Private Limited Company?

The prerequisites for the incorporation of a private limited company are that: The number of members must be between 2-200. There must be at least two directors and two shareholders Each director must have a Directors Identification Number (DIN) PAN card copy of directors/shareholders. Passport copy for NRI subscribers.

Can the private company be incorporated with a residential address?

Yes. The company needs to provide address proof for incorporation. But the Ministry of Corporate Affairs (MCA) allows a residential address to be used as the company's registered address. Thus any address can be provided as the registered address.

What is the authorised capital for the Private Limited Company?

Authorized capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid-up capital is the number of shares issued by the company to shareholders. Authorised capital can be increased after incorporation at any time to issue additional shares to the shareholders.

What is required to start a Private Limited Company?

To register a private limited company, a minimum of two people are required to act as directors and shareholders. The directors must be natural persons, while the shareholders can be natural persons or corporate entities. In addition, a registered office address in India is also required for company registration.

Can NRIs and foreign nationals or foreign entities register a company?

Yes, NRIs, foreign nationals and foreign entities can register a company and invest in India, subject to the Foreign Direct Investment norms set by the RBI. However, incorporation rules in India require for one Indian national to be a part of the company on the Board of Directors.

Documents Required for Private Limited Company Registration

By Online Legal India Published On 26 Feb 2021 Updated On 06 Jan 2023 Category Private Limited Company

Private Limited Company is the most preferred and prominent type of business entity as recognised in India. Though its registration under the Companies Act,2013 and its governing body is the Ministry of Corporate Affairs, widely known as MCA.

As it can be registered for pre-defined objects and can be owned by a group of members called shareholders. Hence, it is an excellant option for Startups and businesses that are passionate to grow over time, choose a Private Company as an ideal business structure.

What is a Private Limited Company?

A Private Limited Company proposes limited liability for its shareholders with certain limitations placed on the ownership.

For an instance, a Limited Liability Partnership has partners, who own and manage the business. In the case of Private Limited Company registration, directors may be different from shareholders.

Having said that, to register a Private Limited Company, a minimum of two shareholders and two directors are required. MCA has recently laid down a few major changes to the process and made it very hassle-free to incorporate a company.

In this article, we will be focussing on the Private Limited Company registration process and the documents required in detail.

Documents required for a Private Limited Company Registration

A.Where director/subscriber is an Indian

An Affidavit on a Stamp Paper is to be given by all the subscribers of the Company to state their willingness to become the shareholders of the Company
Copies of utility bills that are not older than two months
Photocopy of PAN Card or Passport (Foreign Nationals & NRIs)
Photocopy of Voter’s ID/Passport/Driver’s License
Photocopy of the latest bank statement/telephone or mobile bill/electricity or gas bill
Photocopy passport-sized photograph specimen signature (blank document with signature

B.Where director/subscriber is a Foreign National

- Passport
- Address proof: It can be a driving license, residence card, bank statement, Government issued form of identification containing an address

C.Documents Required for Registered Office

Proof of office address – Rental Agreement
NOC from the owner of the property
Photocopy of Property or Sale Deed printed in English (if the property is owned)

Private Limited Company (PLC): Process of Registration

Step 1: Apply for DSC: To obtain Digital Signature Certificate following documents are required.

Step 2: Apply for DIN: After acquiring the Digital Signature Certificate (DSC), the next step is to apply for the Director Identification Number (DIN) of the proposed Director in SPICe Form along with the name and the address proof of the director.

Step 3: Name Approval Application: The next step and a very important step while incorporating an PLC is to decide on the name of the Company.

Step 4: Documents Required: MOA & AOA requires to be submitted at the ROC

Step 5: Filing Forms with MCA: All these documents will be attached with SPICe Form, SPICe-MOA and SPICe-AOA along with the DSC of the Director, and will be uploaded to the MCA site for approval.

Step 6: Issue of certificate of Incorporation: On further verification, the Registrar of Companies (ROC) will issue a Certificate of Incorporation and we can commence our business.

How can we help you?

If you too are wondering to set up a Private Limited Company, the Online Legal India™ expert team can take care of the documentation process. We have a highly qualified CA/CS and 10+ years of experienced lawyers who would assist you to Register your Private Limited Company(PLC). We have budgeted services for those who are willing to venture into a company, business or any other kind of organization.

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