Private limited company
Private limited company Registration
Registering a Private Limited Company (Pvt Ltd) involves several legal and procedural steps. The process varies by country, but here’s a general guide:
Steps to Register a Private Limited Company
1. Choose a Unique Company Name
- Ensure the name is unique and not similar to any existing business.
- Check name availability with the relevant government authority (e.g., MCA in India).
2. Register Directors & Shareholders
- A Pvt Ltd company must have at least two directors and two shareholders (can be the same person).
- Directors need to provide identification documents (passport, Aadhaar, etc.).
3. Draft & File Incorporation Documents
- Memorandum of Association (MoA) – Defines the company’s objectives.
- Articles of Association (AoA) – Specifies internal rules and regulations.
- File with the company registration authority (e.g., Ministry of Corporate Affairs (MCA) in India).
4. Obtain Certificate of Incorporation
- After document verification, the authority issues a Certificate of Incorporation with the company registration number.
5. Apply for PAN, TAN, and Other Tax Registrations
- Obtain a Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) (India-specific).
6. Open a Business Bank Account
- Use the Certificate of Incorporation and tax documents to open a corporate bank account.
Overview
Private limited company Registration in India
FAQ
Frequently asked questions.
Limited Liability Protection – Shareholders are liable only up to the amount they invest.
Separate Legal Entity – The company has a distinct identity from its owners.
Perpetual Succession – The company continues to exist even if directors or shareholders change.
Easy Fundraising – Private equity investors and venture capitalists prefer Pvt Ltd companies.
Ownership Restrictions – Shares cannot be freely traded on the stock exchange.
Minimum Directors: 2 (Maximum: 15)
Minimum Shareholders: 2 (Maximum: 200)
Resident Director: At least one director must be an Indian resident.
Registered Office: A physical address in India is mandatory.
For Directors & Shareholders:
PAN Card (mandatory for Indian citizens)
Aadhaar Card/Voter ID/Passport
Passport-size photograph
Address proof (Bank statement, Utility bill, or Rent agreement)
For Registered Office:
Rental agreement (if rented)
Utility bill (not older than 2 months)
NOC (No Objection Certificate) from the property owner
Enhanced brand credibility and trust
Easier fundraising from investors
Limited liability ensures personal asset protection
Business continuity despite changes in ownership
Compliance Burden: Requires annual filings and record-keeping.
Ownership Restrictions: Cannot publicly trade shares.
Higher Setup & Maintenance Costs compared to sole proprietorships or partnerships.