Speaking with our incorporation expert is the first step if you’re considering forming a new private limited company in India. We go over important terms like Digital Signature (DSC), DIN, MOA, and AOA, along with the schedule, list of paperwork, and company registration procedure. Start now!
Why Register as a Private Limited (Pvt Ltd) Company
With its limited liability, restricted share transfer, and everlasting succession features, Pvt Ltd is the most common corporate structure for new ventures. We at Consult Value are your reliable partner, offering an economical solution that includes all legal processes and document preparation for your business’s incorporation. We will walk you through the full Pvt Company registration procedure, so you won’t have to deal with complicated paperwork or worry about legal nuances. We’ll make sure the company’s incorporation process is easy, digital, and hassle-free. Select Consult Value and concentrate on creating your ideal Indian business, which is what really counts. Start now.
Benefits of Private Limited
- Startups Seeking Investors
- With Multiple Co-Founders
- Lowest Tax Rates
- Ability to offer ESOP
- Easy Ownership Transfer
Eligibility / Checklist for Company Incorporation
The best course of action for a start-up is to incorporate as a Private Limited company since it provides flexibility, scale, and transparency. The PVT LTD is the best corporate structure because of its attributes, which include limited liability to its promoters, perpetual succession, and restricted share transfer. Verifying eligibility (minimum requirements to create a PVT LTD company) is the first stage.
- Minimum Two Shareholder
A minimum of two shareholders are required to launch a business. These stockholders are required to provide the first money and sign the MOA as subscribers. Two hundred is the maximum number of shareholders.
- Minimum Two Director
The directors are in charge of running the business on a daily basis and making sure that all laws are followed. There must be a minimum of two unique directors and a maximum of fifteen.
- One India Resident Director
During the preceding fiscal years, at least 120 days must have been spent in India by one of the company’s directors. The entire tax and other filing compliance of the business is often the responsibility of the Indian resident director.
- Unique Name of Company
The company’s name needs to be original, different from those of other businesses, limited liability partnerships, or trademarks, and it needs to follow the rules on name availability. We will assist you in finding and approving a name.
- Capital for the New Company
Although there is no set minimum or maximum amount of capital needed, the promoters must budget for the funds needed to launch the firm and choose the right amount of capital for it.
- Legal Object or Activity
The primary goal of the business, as stated in the MOA, should be legitimate and limited to a single industry. In accordance with NIC 2008, we will assist you in choosing the appropriate activity code and drafting the company’s primary objective.
Timeline for Private Limited Company Registration
The number of promoters, the availability of the company name, and the documentation all affect how long it takes to incorporate a business. In India, we provide prompt and effective assistance with company incorporation.
Documentation & Digital Signature (1 – 2 Days)
The promoters can finish the necessary paperwork for incorporation in one to two days. Following that, we can start creating digital signatures for each director and shareholder.
Name Search & Main Objects Drafting (1 – 3 Days)
We search for names within a few hours, but based on our experience, it may take some time to construct the MOA and debate the suggested name availability with the promoters.
Filing for Incorporation (3 – 4 Days)
The MOA, AOA, promoters’ identity and address proof, and evidence of registered office are attached to the Spice Plus form, which is used to file the company’s incorporation application. One to two days may pass during this process.
Incorporation Certificate (4 – 7 Days)
Following submission of the Spice Plus form, the application and any supporting documentation are examined by the Registrar of Companies office. The Incorporation Certificate is granted if everything is determined to be in order.
List of Documents for Company Registration
As experienced consultants for company registration, we at Setindiabiz understand the importance of documentation in ensuring a smooth and successful registration process for a Private Limited Company. The list of documents below is for the Company Incorporation by all Resident Indians.
- Permanent Account Number (PAN Card): The Permanent Account Number (PAN), which is printed on the PAN Card, is issued by the Income Tax Department in India. Copies of each proposed director’s and shareholder’s PAN card are required to be submitted during the incorporation procedure.
- Aadhar Card Issued by UIDAI: All Indian residents are required to have an Aadhar card, which is provided by the Unique Identification Authority of India (UIDAI). During incorporation, make sure your Aadhar is connected to your PAN card and cell number for OTP-based verification, particularly when generating a digital signature for you.
- Front Facing Colour Photo: Send in a digital copy of each prospective director’s and shareholder’s photo with a full-face frontal shot against a light-coloured or plain white background. Make sure the photo is current and closely resembles other records.
- Government Issued Identity Proof: The promoters of the Pvt Ltd Company may provide any legitimate, accurately detailed government-issued identity document as identification. Make sure your father’s and your names precisely match the information on the PAN card by carefully checking them. Any one of the following documents can be used as identification.
- Passport
- Aadhar Card
- Driver License
- Voter ID
- Current Residential Address Proof: Documentation proving their residence address is required of all firm promoters, including directors and shareholders. Any document that is no more than two months old can be used as proof of residential address.
- Bank Statement
- Electricity Bill
- GAS Bill
- Telephone Bill
- Mobile Bill
- Proof of Registered Office Address: At the time of incorporation, proof of registered office address is submitted, and the address should not be older than two months. Ensure that the utility bill has the full name of the owner of the premises and complete address with city, state and pin coder. Any one document from below is acceptable:
- Electricity Bill
- Telephone Bill
- GAS Bill
- Mobile Bill
- NOC from the Owner of the Registered Office: The owner of the premises where the private limited company shall have its registered office need to issue a No Objection Certificate (NOC) for incorporation of the company at that address. Contact us for the format.
Incorporation on Communication Address
In India, business owners can use a “communication address” as a temporary address when they first register their company. They must, however, set up a physical “registered office” in the same state and submit Form INC-22 to the ROC within 30 days of incorporation.
Stepwise Process of Company Registration
Get a Digital Signature, Choose a unique name, draft the MoA and AoA, and submit the SPICe+ form to ROC. We offer end-to-end Company Registration Services.
Step-1 : Digital Signature of all Promoters
The first step in registering a Pvt Limited Company is creating a digital signature (DSC) for each director and shareholder. As designated by the Government of India’s Controller of Certifying Authorities In order to receive DSC, we assist candidates with gathering documentation and submitting DSC applications.
Step-2: Name Search for Availability
According to the Companies Act of 2013, a new company’s name cannot be the same as or similar to that of an already-existing business, limited liability partnership, or trademark. A full list of unacceptable names is provided under the guidelines. We assist you in performing a thorough name search.
Step-3: Drafting of MOA & AOA.
In India, a company’s Articles of Association (AOA) and Memorandum (MOA) are its primary legal papers. The AOA establishes the guidelines for how the firm should be run, whereas the MOA mainly specifies the purpose for which the company was founded. We help you draft these documents because they are legal documents.
Step-4: Filing of Spice Plus for Incorporation
In India, a company’s Articles of Association (AOA) and Memorandum (MOA) are its primary legal papers. The AOA establishes the guidelines for how the firm should be run, whereas the MOA mainly specifies the purpose for which the company was founded. We help you draft these documents because they are legal documents.
Step-5 : Company Incorporation Certificate
The certificate of incorporation serves as definitive evidence of the formation of a new business. The company’s CIN, PAN, and TAN are included in the COI. During the incorporation process, the directors’ DIN numbers are also assigned.
Post Incorporation Compliance
Creating a legal body that exists independently of its promoters is the goal of incorporating a business. A corporation must adhere to specific compliance criteria, which can be divided into three categories, as established by the Companies Act of 2013. The first would be tasks that the business needs to do in 30 days. While many registrations, including GST and MSME, are need-based, the second set of operations must be completed within 180 days. The fifteen most prevalent compliances that require your attention have been identified. You may learn more about them from our company registration specialists.
Annual Compliance for Private Limited Company
Mandatory reporting tasks completed after the fiscal year ends make up an Indian company’s annual compliance. The director of the company is primarily in charge of filing the firm’s ITR and fulfilling the mandatory annual reporting to the Registrar of Companies (ROC). Serious repercussions for any noncompliance would include a penalty and late filing cost, and in certain situations, ROC might start legal action. Setindiabiz’s compliance team assists you with your company’s yearly file. This is the list of tasks you need to finish for
Annual Compliance Activities
- Completion of Accounting & Book Keeping
- Preparation of financial statement as per Schedule III
- Get the financial statement Audited by the CA
- Prepare Directors Report
- Conduct Annual General Meeting (AGM)
- File Company Income Tax Return (ITR)
- File ADT-1 form to ROC in case the auditor change
- File AOC-4 Form to ROC to report the financial statement
- File MGT-7 Form to ROC (Annual Return of Company)
Tax Benefits of a Private Limited Company in India
The company’s net profit is subject to income tax, which is less as compared to an LLP. The income tax rate is 15% for manufacturing enterprises and 22% for other recently incorporated entities. The tax advantages of a private limited company over an LLP are shown in the table below.
| No | Particulars | Company | LLP |
| 01 | U/s 115BAB: New Manufacturing Domestic Company, starting manufacturing before 31.03.2024 | 15% | NA |
| 02 | U/s 115BAA: Concessional Income Tax for a Company that Opts for this scheme; Cannot claim certain deductions and exemptions (specified in the Act) | 22% | NA |
| 03 | U/s 115BAC: Opting domestic company | 25% | NA |
| 04 | Standard Income Tax | 30% | 30% |
| 05 | Surcharge on Tax based on Income Level Upto one crore: NIL between 1 to 10 Crore: 7% above 10 Crore: 12% | Yes | Yes |
| 06 | Education Cess 4% on Income Tax & Surcharge (if any) | Yes | Yes |
| 07 | Tax Deductions for Expenses | Yes | Yes |
| 08 | Depreciation on Assets | Yes | Yes |
| 09 | Dividend or Profit Distribution Tax | No | No |
| 10 | Tax on dividend or profit | Yes | Yes |
| 11 | Carry Forward of Losses | Yes | Yes |
| 12 | Minimum Alternate Tax (MAT) | Yes | No |
| 13 | Income Tax Return Filing | Mandatory, | Mandatory, |
Frequently Asked Questions
Q1.What are the types of Business Structures in India ?
You can choose from the following business types (Indian company registration types). Selecting the type that best suits your company’s goals and structure is crucial because each has distinct features and compliance needs. You can consult our in-depth examination of Indian business types.
- Private Limited Company
- Public Limited Company
- One Person Company (OPC)
- Partnership Firm
- Limited Liability Partnership (LLP)
- Section 8 Company
- Nidhi Company
Q2.What is the Company Registration Process in India ?
In India, registering a business is a simple online procedure that eliminates the need to visit government offices. Preparing the required paperwork, acquiring Digital Signature Certificates (DSC), creating an Articles of Association (AOA) and Memorandum of Association (MOA), and submitting the SPICe Plus form are all steps in this effective procedure. The incorporation procedure typically takes three to seven working days, though this might vary based on a number of circumstances. You can use the guidelines given here for a thorough examination of the company formation procedure. The typical process to set up a company in India is as follows:
- Choose Business Structure
- Obtain DIN
- Acquire DSC
- Select Company Name
- Draft MOA and AOA
- Submit SPICe+ Form
- MCA Verification
- Issuance of COI
Q3. What is the Cost of Company Registration ?
The cost of registering a Private Limited Company in India depends on various factors, such as the number of promoters, the authorised capital of the company, and the location of its registered office. The registration fees can also differ as these factors vary in each case. If you require specific details or a tailored estimation of the registration cost, it’s advisable to consult directly with our experts. Factors Affecting the Company Registration Cost
- Number of Directors or Shareholders
- Proposed Capital of the Company
- The state where the company will have its registered office
Q4. What are the Documents Required for Company Registration in India ?
The basic documents of the promoters are required, which are listed below. Apart from the promoter document, proof of the registered office address is also submitted with NOC from the owner of the premises where the company’s registered office shall be situated.
- PAN Card
- Aadhar
- Identity and address proofs of all promoters
- DSC of all directors and shareholders
- Proof of registered office address
- No Objection Certificate from the owner of registered premises
Q5. Is GST registration mandatory for company registration ?
No, GST Company registration does not require registration at all. In India, a new legal entity has been established through the incorporation process. Only once the new business is established is GST applied to it. Consequently, GST is not a requirement for Indian company incorporation.
Q6. What happens if my company name is already taken ?
According to Section 4 of the Companies Act, a new company in India may only be established under a distinctive name that differs from or is similar to an already-existing company, limited liability partnership, or trademark. Occasionally, the ROC may reject the name reservation application or the requested company name may not be accessible. Since ROC has the authority to approve or reject names based on regulations, we suggest our customers to think about other names.
Q7. Is the physical presence of a person necessary for company registration ?
No, the physical presence of the promoters is not needed as the entire incorporation process is digital and no physical paper is submitted to the ROC.
Q8. Is it necessary to have a company’s books audited ?
Yes, under section 139 of the Companies Act 2013, every company has to get its books or financial statement audited by a practising chartered accountant before the AGM.
Q9. Can the director of a private limited company be a salaried person ?
Yes, a person employed on salary in any other organisation can be a director in the Private Limited Company.
Q10.What is a Digital Signature Certificate (DSC)? For people or organizations engaging in online transactions, a Digital Signature Certificate (DSC) is a secure electronic identification that offers a digital signature. The Ministry of Corporate Affairs (MCA) mandates the usage of DSC in order to submit electronic forms on their portal for online company formation in India.
