● What is a Private Limited Company?

A private limited company, or LTD, is a type of privately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 200, and restricts shareholders from publicly trading shares.

● Advantages-

     -Limited Liability.

     -Restricted Trade of Shares.

     -Continued Existence.

     -Scope of expansion.

     -Less Compliance Requirements than Public Limited Company.

     -Minimum 2 Members requires.

     -Minimum 2 Directors requires.

● Documents Requires -

     - Pan Card of Subscribers to MOA.

     - ADDRESS PROOF (ELECTRICITY BILL/BANK STATEMENT /TEL BILL) of Subscribers to MOA.

     - ID PROOF of Subscribers to MOA -ADDHAR/VOTER ID/DRIVING LICENCE/PASSPORT).

     - REG.OFFICE ADDRESS PROOF -ELECTRICITY BILL/TEL BILL

PROCEDURE FOR INCORPORATE PRIVATE COMPANY

A.  ACQUIRING DIGITAL SIGNATURE

Acquire DSC - A licensed Certifying Authority (CA) issues the digital signature. Certifying Authority (CA) means a person who has been granted a license to issue a digital signature certificate under Section 24 of the Indian Information Technology Act, 2000.

Register DSC - Role check for Indian companies is to be implemented in the MCA application. Role check can be performed only after the signatories have registered their Digital signature certificates (DSC) with MCA.

B.  OBTAIN DIRECTOR IDENTIFICATION NUMBER

It is important to note that every person who is to be appointed as a director must have "Director's Identification Number (DIN)" [Section 152(3)]. If the proposed director does not already have a DIN, he/she must obtain the same before incorporation of the company. This can be obtained by making an application on the MCA portal in Form DIR - 3.

C.  NAME SELECTION

Promoters may to propose up to six names in order of procedure for the proposed company and secure the name availability by making an application to the Registrar of Companies of the State in which they want to have the proposed company incorporated. The application is required to be made in Form INC -1.

The name, if made available to the applicant, shall be reserved for sixty days from the date of approval. If, the proposed company has not been incorporated within such period, the name shall be lapsed and will be available for other applicants.

The Name of company must contain word Private Limited

D.  Drafting and Printing of Memorandum and Articles of Association

After ascertaining name availability from the Registrar of Companies steps should be taken to get the memorandum and articles of association for the proposed company drafted and printed. The MOA & AOA of a company shall be As per Schedule - I of the Companies Act, 2013.

E.  Stamping and Signing of Memorandum and Articles

The memorandum and articles should be printed and signed by two subscribers. Thereafter, the memorandum and the articles should be stamped by the appropriate State Authority (Collector of Stamps) under the Indian Stamp Act, 1899. However, presently there is a facility for online payment of stamp duty along with filing fees. It is pertinent to note the Stamping is a subject matter of "State Revenue" and not a matter of the Central Government. Hence the Stamp Duty payable on the Memorandum and/or the Articles of Association shall be determined according to the place of incorporation of the company.

F.  Filing of Documents and Forms for Registration

According to Section 7 of the Companies Act, 2013 all document related to incorporation shall be filed be filed before the registrar, in whose jurisdiction registered office of a company is proposed to be situated. A Registrar may have jurisdiction over several states or only a part of a state.

G.  Registration and Filing Fee

Promoters must make sure to remit to the Registrar, along with the above forms/ documents, the prescribed registration fee and fee for filing of forms as per the rates contained in the Rules.

The fee payable for the purpose can be remitted either electronically (by using a Credit Card or by electronic Bank transfer) or by cash/draft through challan generated electronically on submission of the e-form.

Ensure that for a Private limited company, the minimum paid-up capital is 1 lakh rupees or such higher paid-up capital as may be prescribed.

H.  Certificate Of Incorporation

After the registration of the company, the Registrar will issue under his hand and seal of his office, the Certificate of Incorporation in the name of the company and send it electronically. One may also take printout of the Certificate of Incorporation generated online. The date mentioned by the Registrar in the Certificate of Incorporation shall be the date of incorporation of the company, on which date the company will be considered to have come into existence as a legal entity separate from its subscribers.

I.  Verification of Registered office

The company has filed with the Registrar a verification of its registered office within a period of 30 days of its incorporation in Form INC 22.

● To Start a Private Limited Company Contact us at