A private limited company is the most popular structure for businesses that plan to grow, raise money or work with larger clients. Registration is now fully online through the Ministry of Corporate Affairs (MCA), and with the right documents it can be done in a couple of weeks. Here is the whole journey.
Why choose a private limited company?
- Limited liability — shareholders’ personal assets are protected; their risk is limited to the capital they put in.
- Separate legal entity — the company owns property, signs contracts and carries on even when owners change.
- Easier to raise funds — investors and banks are comfortable with the structure, and shares can be issued to bring in partners.
- Credibility — large customers, government departments and foreign clients often prefer to deal with companies.
The trade-off is more compliance than a proprietorship or partnership — see our annual ROC compliance checklist before you decide.
Basic requirements
- At least two directors and two shareholders — the same two people can be both.
- At least one director must have stayed in India for 182 days or more in the financial year.
- No minimum capital — you can start with any amount of paid-up capital.
- A registered office address in India, which can be rented or even a residence.
- A unique name that is not identical or too similar to an existing company or a registered trademark.
Documents you need
| For | Documents |
|---|---|
| Each director and shareholder | PAN, Aadhaar, passport-size photo, a recent bank statement or utility bill as address proof, mobile number and email |
| Registered office | Electricity or water bill (not older than two months), plus a rent agreement or a no-objection letter from the owner |
Step by step
- Digital signatures (DSC) — obtain a class 3 DSC for each proposed director; the forms are signed with it.
- Name approval — apply for up to two names through Part A of the SPICe+ form (or the RUN service). Check trademarks too, not just company names.
- SPICe+ Part B — file the incorporation form with company details, directors, shareholding and registered office. DINs for up to three directors are allotted through this form.
- e-MoA and e-AoA — the memorandum and articles of association are filed online with SPICe+.
- AGILE-PRO-S — the linked form that also applies for EPFO and ESIC registration, a bank account and, optionally, GST registration.
- Certificate of incorporation — once approved, the MCA issues the certificate with the company’s CIN, along with its PAN and TAN.
If the documents are in order and the name is approved first time, incorporation usually takes 7 to 15 working days. The MCA filing fee is nil for companies with authorised capital up to ₹15 lakh; stamp duty depends on the state.
The first 180 days after incorporation
- Open the company’s bank account and deposit the subscription money.
- Appoint the first auditor within 30 days.
- Issue share certificates within 60 days.
- File INC-20A, the declaration of commencement of business, within 180 days.
- Register under GST, and for professional tax or a shop licence if your state requires them.
Our company registration service covers the DSCs, name approval, SPICe+ filing and the first-year compliances — so you can concentrate on starting the business.
This article is general guidance based on the rules in force on its publish date, not professional advice for your specific case. Tax and company rules change often — check your situation with us before you act.
