Private Limited Company Registration

What is private limited company in India?

A private limited company is a privately held business entity held by private stakeholders owned by a small group of people, typically family members or close friends. The liability arrangement, in this case, is that of a limited partnership, wherein the liability of a shareholder extends only up to the number of shares held by them.

What is the minimum and maximum members in a private limited company?
A private limited company may consist of a minimum of two members and a maximum of 200 members.

How is private limited company taxed in India?
In terms of taxation, a private limited company in India is subject to corporate income tax on its profits, and the shareholders are subject to tax on the dividends they receive.

What are the types of registration?
There are seven types of registration in India, including Sole Proprietorship Registration, One-person Company Registration, Partnerships Firm Registration, Limited Liability Partnership (LLP) Company Registration, Private Limited Company Registration, Public Limited Company Registration, and Section 8 Company Registration.

What are the compliances of a Private Limited Company?
A company is required to maintain certain compliances once it is incorporated. An auditor needs to be appointed within 30 days and income tax filing and annual return filing need to be done every year. Apart from these, mandatory compliances like ‘Commencement of Business’ forms, and DIN eKYC also need to be done.

From Idea to Reality: What You Need to Start a Private Limited Company

Members

To register a private limited company, you need at least two and up to 200 members. The directors must have a director identification number and at least one of them should be a resident of India.

Company Name

Choosing a name for the company can be tricky. It needs to include the main name, the activity it will carry out, and ‘Private Limited Company’ at the end. You must submit 5-6 name options to the Registrar of Company for approval.

Registered Official Address and Documents

After registering, you must file the permanent address of the registered office with the registrar of the company. You also need a digital signature certificate to submit documents electronically.

The documents required for a private limited company are:

ID proof: PAN card and passport of Indian and foreign directors, respectively
Address proofs: Ration card or Aadhar card or driver’s license or voter ID
Residence proofs: Bank statement or electricity bill of the premise
Notarized rental agreement
NOC from the property owner
A copy of the sale deed or property deed (for an owned property)