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Private Limited Company Registration Everything You Need To Know About

Everything You Need To Know About Pvt Ltd Company Registration

What is a Private Limited Company?

A private company is a company which is controlled by a relatively small number of shareholders or the non-governmental organisation or members of a company. Usually a private limited company does not offer or transfer its shares to the general public. If you are establishing a new company that is a limited company with the legal structure that will ensure you meet your business goals, it is likely that you will be forming a private limited company. A private limited company can be used as a structure for any type of business including, a plumber, hairdresser salon, photographer, law firm, dental practice, accountant, or restaurant. It comes under the Companies Act 2013. It is managed and controlled by the directors and shareholders of the company.

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What are the Benefits of Private Limited Company?

  • Separate Legal Entity : A  private limited company registration offers a separate legal entity from its shareholders.  
  • Benefits of Limited Liability : The liability of the shareholders is limited in a private limited Company. This means the shareholders liability is limited to the extent of their shareholding in the company.
  • Increased Fundraising Opportunity : Private limited companies have better fundraising opportunities than sole proprietorships or partnerships firm. They can issue shares, avail loans and attract investments from various corporate bodies.  
  • Enhanced Trust and Credibility : As a private limited company it will boost your company credibility and trust between shareholders, investors, customers etc. 
  • Privacy and Confidentiality : You need to maintain the privacy and confidentiality of legal, financial and personal information in a private limited company. 
  • Ease of Ownership Transfer : In a Private limited company the shares can be easily shared to other individuals, this becomes easy to transfer the ownerships of the company registration
  • Feature of Perpetual Existence : A private limited company has a feature of perpetual existence. This indicates that its existence is not bothered by the death or retirement of any of its management or shareholders.

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What is the Procedure of Registering a Pvt Ltd Company in India?

If you want to register your private limited company then you need to follow these given below steps:-

  1. Obtain a Digital Signature Certificate: As a first step to proceed the registration process you need to apply for the Digital Signature Certificate (DSC) on the online government MCA website. 
  2. Get DIN: As a next step you need to obtain a Director Identification Number (DIN). For this you need to fill the SPICe+ form. DIN is necessary documents for all the directors of the company. 
  3. Do Online Registration: You need to visit the MCA portal to register a private limited company. You must submit the  SPICe+ form on the website portal.
  4. Name Reservation of the Company: You need to reserve the name for your company. Visit the government MCA portal to select the name for your company and if the name is available then you need to send the request for name reservation to the Registrar of Companies. At least two proposed names must be submitted. 
  5. Online Submission: You need to fill in the details of the company and directors and upload all the necessary documents including the DSC and DIN. To proceed you need to fill Part-B of the SPICe+ form. For this you need to provide this details in Part-B:-
  • Information of Subscribers and Directors
  • Capital details
  • Complete address of Registration office
  • Selection of State or Union Territory for the calculation of applicable Stamp duty
  • PAN and TAN of the company 
  • Certificate and Declaration by practising professionals like CA, CS, or CMA. 

6. Preparation of Incorporation Forms and Final Submission: You need to Draft the Article of Association (AOA) and Memorandum of Association (MOA). Get digital signatures from subscribers and professionals and submit these documents on the Government MCA portal for approval.

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What are the Documents Required for Private Limited Company Registration?

Here is a list of documents required for registration of a private limited company:

1. Documents for identification proof of all the directors and shareholders:

  • Aadhar card.
  • Pan card.
  • Passport. 
  • Driving license.

2. Documents for address proof of all the directors and shareholders:

  • Latest electricity bill. 
  • Latest telephone bill.
  • DSC and                     
  • DIN (DPIN in case of LLP) of all the directors.
  • Documents of the Company or Limited Liability Partnership.

3. Proof of  Company Office Address:

  • Rent agreement if the property is rented.
  • NOC granted by the landlord to use the premises as the company’s Registration office.
  • Sale deed of the company office premises.
  • Latest electricity bill.
  • Telephone bill.

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What is the Eligibility for Pvt Ltd Company Registration?

The eligibility criteria for Private Limited Company Registration is as follows:

  • There should be a minimum of two shareholders.
  • There should be at least two Directors to run the business.
  • One of the company’s directors needs to be Indian.
  • There is no need for minimum capital to establish a company.
  • The company proposed name should be unique and different 
  • The company’s Memorandum of Association must clearly state the legal objectives of the company. 
  • A company must have a Registered office.

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Following are the disadvantages of a private company:

  • It restricts the transferability of shares
  • the stock exchange rate cannot get quoted 
  • there is a limited number of shareholders in a company 
  • there is a tedious compliance process


Private companies are lower than Public Limited Company Registration according to their investment in long-term strategies, keeping the values of their shares and financial figures discreet, freedom, and flexibility of operations.

To form a private limited company in India there should be a minimum number of 2 directors and 2 members are required. All these members have a limited liability and you can add a maximum number of 200 members. 

To establish a private limited company it generally costs from INR 6,000 to INR 30,000, depending upon your company numbers of  Directors, members, the authorised capital, and professional fees.

It is compulsory for all private companies to hold an annual general meeting under Section 134. These companies need to hold the meetings within six months from closing their Financial year.

These are the rules of a private limited company:

  • There should have at least 2 Directors and 2 Members 
  • The company members should organise an annual general meeting every year 
  • The maximum number of Members  in the company cannot exceed more than 200

These are the process to register a private limited company:

Step-1: Obtain DSC (Digital Signature Certificate)
Step-2: Get for the DIN (Director Identification Number)
Step-3: Apply for name reservation 
Step-4: Apply for the  EMoa and EAOA for private limited company registration
Step-5: PAN and TAN for the company
Step-6: Certificate of incorporation will be released by RoC with PAN and TAN
Step-7: Open a latest bank account for company purpose 

Updated on: 27 Mar, 2024 | 7 min read