Private Limited Company is the most common and popular type of corporate registrations in India. Private limited company registration is governed by the Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required.
In this article, we look at the private limited company registration process and documents required in detail.
Private Limited Company Registration Requirements
A private limited company must have a minimum of 2 Directors and can have a maximum of 15 directors. One of the Director of a private limited company has to be an Indian Citizen and Indian Resident. The other director(s) can be a Foreign National. Two persons are are also required to act as shareholder of a company. The shareholders can be natural persons or an artificial legal entity. Hence, a company can be owned by two corporate, which are domiciled in India or abroad.
Private Limited Company Registration Documents Required
To register a private limited company, the company’s proposed directors would have to submit the following documents as identity proof:
For Indian Nationals – PAN
For Foreign Nationals – Passport
The proposed Directors can submit the following documents as proof of address:
For Indian Nationals – Passport / Drivers License / Election ID / Ration Card / Aadhar ID
For Foreign Nationals – Passport / Drivers License Bank Statement / Residence Card
Finally, the proposed Directors must submit the following documents as proof of residence.
(This document must be less than 2 months old):
For Indian Nationals – Bank Statement / Electricity Bill / Phone Bill
For Foreign Nationals -Bank Statement / Electricity Bill / Phone Bill
In case a company in India or abroad is one of the shareholders of the company, the following documents would have to be submitted:
Board resolution authorizing investment in the company Incorporation Certificate of the Company Address proof of the company.
Private Limited Company Registration Process
The following process for company registration in India:
1. RUN Name Approval
First name approval is obtained for the proposed company names from the Ministry of Corporate Affairs. Upto 2 names can be provided. In case of rejection of both names, an opportunity is provided for re-submission of the form with 2 more names. The name must be acceptable to the MCA as per the Companies Act 2013.
Timeline: Name approval can be obtained in 1-2 business days.
2. Digital Signature
Digital signature must be obtained for the proposed Directors of the Company. Digital signature is required for signing of the incorporation application. However, digital signature is not required for obtaining name approval. Hence, this process of obtaining Digital signature can run parallel to the name approval process.
Timeline: Digital signature can be obtained in 1-2 business days.
3. Incorporation Application Submission
On obtaining the Digital Signature, the incorporation application can be submitted in SPICe Form with the MCA. There is no requirement for obtaining RUN Name Approval for submission of SPICe Form. Hence, if RUN name approval was not obtained, if the name is available, the company would be incorporated. In case of non-availability of name, the incorporation documents must be resubmitted. Hence, its advisable to obtain RUN name approval before submission of SPICe Form.
Timeline: Incorporation application can be prepared and submitted in 1-2 business days.
On submission of the incorporation application, private limited company incorporation certificate along with PAN and TAN is provided within 1-2 business days by the MCA.
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