Private Limited Company Registration in India

Documents Required to Register a Private Limited Company

• Identity Proof and Address Proof
  a. Passport/ Aadhar card/ Voter ID/ Driver's License of partners, 
  b. PAN card, and
  c. Utility bills or Bank Statements as address proof.
• Proof of Registered Office
  a. Ownership of Property- Any utility bill like an electricity bill or corporation tax receipt not later than 30 days.
  b. Right to use the Property- Rental Agreement or No Objection Certificate (NOC) from the owner.
• Memorandum of Association (MOA) and Articles of Association (AOA)
  a. MOA defines the company's objectives and scope of activities. 
  b. AOA outlines the company's internal regulations and governance structures.
• Declaration and Consent of the proposed Directors
  Form INC-9 and DIR-2 serves as the official declaration and consent to assume the role of a director respectively.

Private Limited Company Incorporation Process

The MCA has introduced Simplified Proforma for Incorporating Company Electronically Plus (SPICe+), an integrated Web form offering multiple Government services. This has two parts: Part A and Part B.

• Obtain a Digital Signature Certificate (DSC)
  a. A DSC is a digital method of verifying or attesting a document.
  b. The DSC is often issued with one-year or two-year validity. DSC is mandatory for all witnesses in the Memorandum of Association (MOA) and Articles of Association (AOA).
  c. You can obtain a class 2 or 3 DSC through any listed Government Certifying Agencies (CAs).
• Apply for Name Approval using SPICe+ Part A View 
  a. Part A of the SPICe+ form provides for 'Name Reservation' with two proposed names and one re-submission (RSUB).
  b. You must re-file another SPICe+ form with the specified fee if the name is rejected due to a name resemblance with a registered company, an LLP, or a trademark or due to non-compliance with the MCA guidelines.
  Note: You can simultaneously apply for name approval (Part A) and Incorporation (Part B) through SPICe+. But in cases where both parts are simultaneously filed, you can reserve only one name.
• Apply for Company Registration using SPICe+ Part B View 
  Following name approval, Part B of the SPICe+ form must be submitted to finish the registration process. Part B helps complete the following steps:
  i. Application for allotment of DIN (Director Identification Number)
  ii. Incorporation of a new company
  iii. Submission of e-MoA(INC-33) and e-AoA (INC-34)
  iv. Application for PAN and TAN (mandatory)
  v. Application for EPFO registration (mandatory)
  vi. Application for ESIC registration (mandatory)
  vii. Application for Professional tax registration (only for Maharashtra)
  The information entered in SPICe+ Parts A and B is immediately transferred to the associated forms AGILE-PRO, eAoA, eMoA, URC1, and INC-9 (as applicable).
• Open a bank account
  Open a Current account for your company for seamless transactions & business operations. A current account offers the flexibility to handle various financial aspects, such as receiving client payments, making supplier payments, and managing payroll.
• File for the Commencement of a Business Certificate
  The commencement of a Business Certificate is the declaration that the Director of the Company needs to file with the Registrar of Companies. It is filed through Form INC-20A within 180 days of the incorporation of the Company.

Searching for a company name?

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Disadvantages

• Tedious Registration & Dissolution Process
  Registering a private limited company involves a tedious process and costs compared to a Limited Liability Partnership registration. The procedure for dissolving the company can be equally complicated, time-consuming, and costly. A lot of documentation is required and often needs a qualified CA to smoothen the process.
• More compliance requirements
  A company must maintain various compliances irrespective of business turnover or activity. Hence, operating a company involves a minimum recurring cost each year, and might face penalties for failing to fulfill these requirements. 
If you are a small-scale business and currently bootstrapped, it is advisable to register as an LLP.
• Slower Management & More Dependencies
  Since ​​it requires a minimum of two persons to act as Directors and Shareholders, this type of structure won’t allow centralized control or ownership. Also, the process of approvals and management can be slow due to dependency on all the participating members.

Private Limited Company Registration Number

The Private Limited Company Registration Number, also known as the Corporate Identification Number (CIN), is a unique 21-digit alphanumeric code assigned to a private limited company upon its registration with the Registrar of Companies (ROC). 

This number serves as a distinct identifier for the company and contains information about its registration details, including the state where it's registered and the type of company structure. 

Example of CIN for a Private Limited Company: U72200KA2013PTC097389

The CIN can be broken down into-

• The first letter indicates the listing status of the company. Unlisted companies have a CIN that starts with the letter "U," while listed companies commence with the letter "L."
• The next series of five numbers serves to classify the economic activity of a company, indicating the specific industry to which the company pertains.
• The following two letters signify the Indian state in which the company is registered. Here, it implies Karnataka.
• The succeeding four numbers denote the year of incorporation of the company, i.e., 2013.
• The subsequent three letters designate the classification of the company. These aid in determining whether the company is a Private limited company, a Public limited company, a Foreign company, or more. PTC stands for Private Limited Company.
• The last six-digit numbers signify the unique registration number issued by the relevant Registrar of Companies (ROC).

How to Get a Registration Number for a Private Limited Company?

Following the approval of the SPICe+ Form, you will receive an email from the MCA that includes the Certificate of Incorporation, PAN, and TAN. 

The Registrar of Companies (ROC)  issues the Certificate of Incorporation, a legal document that your company has been successfully registered.

The Certificate of Incorporation contains essential details such as the company's name, registration number, date of incorporation, registered office address, and the type of company structure.

Private Limited Company Registration Fees

The Cost of Registration of Private Limited Company with Razorpay Rize- Rs. 5999

Register your Private Limited Company in just ₹5,999

Register your business

*The includes DSC and DIN for 2 directors+ Incorporation Certificate +MoA+ AoA+ PAN+TAN in the case of Pvt Ltd. 

**Extra fees may apply for additional directors or authorized capital. We levy extra stamp duty for states like MP, Kerela, and Punjab. For the exact estimate, reach out to us at [contact details]. 

The cost of company registration can vary based on several factors, including the jurisdiction in which you're registering, professional fees, and any additional services you might opt for.

Checklist for Registration

A concise checklist to help you navigate the Private Limited Registration Process:

Get DSC for all designated Directors.

Draft the e-Memorandum of Association & e-Articles of Association.

Approval of Company Name, a unique and compliant name.

Apply through SPICe+.

Submit documents & pay fees.

Get Certificate of Incorporation.

Obtain PAN & TAN.

A Company bank account, Proof of the company's registered office.

Stay up-to-date with Compliances.