Company Registration (Professional Fee)

Private Limited Company Registration

A Private Limited Company is one of the most popular and trusted business structures in India. It offers shareholders limited liability protection, a separate legal identity, and a clear distinction between directors and shareholders – making it the preferred choice for startups, growing businesses, and entrepreneurs looking to build a scalable venture.

BizReady offers end-to-end private limited company registration at affordable prices. Our CA-backed team handles everything – from DSC and DIN to SPICe+ filing and Certificate of Incorporation – ensuring full compliance with the Ministry of Corporate Affairs (MCA) regulations.

What is a Private Limited Company?

A private limited company is a privately held business entity with limited liability. It has a separate legal identity from its owners and requires a minimum of two members and two directors to operate. It is among the most favoured business structures in India due to its numerous advantages.

Key Characteristics:

Limited Liability Protection: Shareholders are liable only to the extent of their shareholding. Personal assets remain protected even if the company faces financial setbacks.

Separate Legal Entity: The company has its own legal identity – it can own property, enter into contracts, and initiate or defend legal actions in its own name.

Minimum Shareholders: A private company must have a minimum of 2 and a maximum of 200 shareholders.

Minimum Directors: At least 2 directors are required, and at least one must be an Indian citizen and resident.

Minimum Share Capital: The company must maintain a minimum paid-up capital of ₹1 lakh or higher as prescribed.

Name Requirement: The company name must end with "Private Limited."

Restrictions on Share Transfer: Shares can only be transferred with Board approval or as per the Articles of Association.

No Public Invitation: Private limited companies cannot invite the public to subscribe to their shares or debentures.

Compliance Obligations: The company must maintain proper financial records, conduct annual general meetings, and file annual returns with the Registrar of Companies (RoC).

Types of Private Limited Companies

Company Limited by Shares

Shareholders' liability is limited to the nominal share amount mentioned in the Memorandum of Association. This is the most common type.

Company Limited by Guarantee

Member liability is limited to the guaranteed amount specified in the Memorandum of Association, invoked only during winding up.

Unlimited Company

Members have unlimited personal liability for the company's debts. However, the company is still a separate legal entity, and individual members cannot be sued directly.

Advantages of a Private Limited Company

Limited Liability: Shareholders' responsibility is restricted to their capital contribution. Personal assets are protected from the company's financial obligations.

Distinct Legal Identity: The company exists independently of its owners – it can own assets, sign contracts, and take legal action in its own name.

Perpetual Existence: The company's existence continues regardless of changes in shareholders or directors. It is not dependent on the lifespan of any individual.

Ease of Funding: Raising capital through shares is straightforward – making it attractive to investors, venture capitalists, and angel investors.

Tax Benefits: Private limited companies may qualify for various tax benefits and exemptions, making them tax-efficient entities.

Credibility and Trust: Having "Pvt. Ltd." in your company name instils greater confidence among customers, suppliers, and partners.

Disadvantages of a Private Limited Company

Compliance Burden: Regulatory demands including financial reporting, annual filings, and statutory audits are mandatory.

Higher Setup Cost: Formation and ongoing management costs are higher compared to simpler structures like sole proprietorships or partnerships.

Share Transfer Restrictions: Shares cannot be freely transferred; maximum of 200 shareholders permitted.

Public Disclosure: Financial information is filed with the RoC and may be publicly accessible.

Exit Complexity: Selling shares or exiting the company is more complex than with other structures.

Slower Decision-Making: Involvement of shareholders and the board may slow down certain business decisions.

Requirements for Registration

Directors and Members: A minimum of 2 directors and 2 members are required under the Companies Act, 2013. Directors must obtain a Director Identification Number (DIN) from the MCA. At least one director must be an Indian resident (having spent 182+ days in India in the previous calendar year).

Company Name: The name should reflect the principal business activity and must end with "Private Limited." It must be unique and not identical to any existing company or trademark.

Registered Office Address: The company must provide a permanent registered office address to the Registrar. All business operations and company documentation are maintained at this address.

Company Registration Process – Step by Step

Step 1: Obtain Digital Signature Certificate (DSC)

Every director and shareholder must obtain a DSC issued by the Controller of Certification Agencies (CCA). Required documents include passport-sized photos, PAN, Aadhaar Card, phone number, and email address. Foreign nationals must also furnish notarised and apostilled documents if applicable.

Step 2: Obtain Director Identification Number (DIN)

All proposed directors must obtain a DIN. This unique identification number is essential and must be provided in the registration forms.

Step 3: Name Reservation (SPICe+ Part A)

Complete the SPICe+ Part A form to reserve a unique company name. This involves selecting the company type, class, category, and sub-category, specifying the industrial activity, and proposing two names for approval.

Step 4: Submit Company Details (SPICe+ Part B)

Provide comprehensive information including authorised and paid-up capital, registered office address, subscriber and director details, stamp duty payment, PAN and TAN application, and all necessary attachments.

Step 5: File MOA and AOA (SPICe+ MOA & AOA)

Draft the Memorandum of Association (MOA) and Articles of Association (AOA) containing key company details. Obtain digital signatures from subscribers and professionals before submitting to the MCA.

Additionally, file the AGILE-PRO-S form to register for GST, EPFO, ESIC, bank account opening, and Shop and Establishment licence (state-dependent).

Step 6: Receive Certificate of Incorporation

Upon successful verification, the MCA issues the Certificate of Incorporation (COI) along with the Company Identification Number (CIN), PAN, and TAN.

What is a Certificate of Incorporation?

The Certificate of Incorporation is a government-issued document that legally confirms the formation of your company under the Companies Act, 2013. It is issued digitally by the Registrar of Companies (RoC) under the MCA after successful approval, in accordance with Section 7(2) of the Act.

This certificate authorises your company to:

• Own assets and open bank accounts
• Apply for statutory registrations (GST, etc.)
• Enter into legal contracts
• Raise funds and investments

The certificate contains: Company Name, Corporate Identification Number (CIN), Date of Incorporation, PAN and TAN, Company Structure, and Registered Office Address.

Documents Required

For Indian National Directors/Subscribers

• Affidavit by Subscribers on stamp paper confirming intention to become shareholders
• Registered Office Proof – Rent agreement + NOC from landlord (if rented) or Sale Deed (if owned)
• Utility Bill – Latest electricity, water, or gas bill (not older than 2 months)
• Name Approval Documents – Trademark certificate or government approval letter, if applicable
• Identity and Address Proof – For any subscriber/director without an existing DIN

For Foreign National Directors/Subscribers

• Valid Passport (mandatory)
• Address Proof – Driving licence, residence card, bank statement, or government-issued ID with address

Timeline

Registering a Private Limited Company in India typically takes 7–10 working days, covering DIN approval, name reservation, and Certificate of Incorporation. The SPICe+ (INC-32) form has streamlined the entire process into a single online application with the MCA, significantly reducing registration time.

Post-Registration Compliance

After incorporation, the following compliances are essential to ensure smooth operations:

• Opening a company bank account
• Issuing share certificates to subscribers
• Appointing auditors within 30 days
• Filing the LLP Agreement / commencement of business declaration
• Maintaining statutory registers and minute books
• Filing annual returns and financial statements with the RoC
• GST registration (if applicable)
• Regular board meetings and AGMs

BizReady provides ongoing post-registration compliance support to keep your company in good standing.

Why Choose BizReady for Company Registration?

Expert Consultation: Our team of Chartered Accountants and legal professionals provides guidance tailored to your specific business goals and structure.

Name Selection & Reservation: We help you choose a unique, compliant company name, conduct availability searches, and handle the reservation process as per RoC guidelines.

Complete Documentation: From DSC and DIN to MOA, AOA, and SPICe+ filing – we prepare and submit everything accurately.

Transparent Pricing: No hidden charges. You know the complete cost of registration before we begin.

End-to-End Support: We don't just incorporate your company – we set you up for long-term success with post-registration compliance, GST filing, income tax support, and more.

Track Your Progress: Monitor every step of your registration through our platform. Complete transparency from start to finish.

Backed by the professionals at LexVerge LLP, BizReady brings big-firm expertise to growing businesses at SME-friendly prices.