Private Limited Company Registration Process
In India, as of 2025, data over 1.8 million private limited companies have been registered. A Private Limited Company (Pvt Ltd) is the most popular form of business entity in India. It gives limited liability, a separate legal identity, and better credibility for funding and contracts. Registration is completely online under the Ministry of Corporate Affairs (MCA) at www.mca.gov.in.
Step-by-Step Process to Register a Private Limited Company
1. Obtain Digital Signature Certificate (DSC)
- Required for all proposed directors and shareholders.
- Used to digitally sign the incorporation forms on the MCA portal.
Where to Apply: Any MCA-approved Certifying Authority (e.g., eMudhra, NIC).
Documents Needed:
- PAN card
- Aadhaar card
- Email & mobile number
- Passport-size photo
Fee: ₹1,000–₹2,000 per DSC (valid for 2 years).
2. Apply for Director Identification Number (DIN)
- Mandatory for every director.
- Can be applied directly through the SPICe+ (INC-32) form during incorporation.
- No separate application is required unless the person is not part of the new company.
3. Name Reservation
- Apply via SPICe+ Part A on the MCA Portal.
- Name must be unique and end with "Private Limited".
- Can propose up to 2 names per application.
Fee: ₹1,000 for name reservation.
Validity: 20 days once approved.
Tip: Avoid words like "National", "Bank", "Exchange", or government-related terms without approval.
4. Draft Incorporation Documents
Prepare the following mandatory documents:
- Memorandum of Association (MoA) – defines the company's objectives.
- Articles of Association (AoA) – defines rules and management structure.
- Declaration of Directors (Form INC-9).
- Consent of Directors (Form DIR-2).
- Proof of Registered Office – rent agreement or ownership proof + NOC from owner.
5. File SPICe+ (INC-32) Form
Single integrated form that covers:
- Incorporation
- PAN & TAN
- DIN
- EPFO, ESIC, and Professional Tax (where applicable)
Upload signed forms using DSC through the MCA portal.
Registrar of Companies (RoC) will verify details.
6. Receive Certificate of Incorporation (COI)
- Issued by the Registrar of Companies (RoC) via email.
- Contains Corporate Identification Number (CIN).
- The company legally comes into existence from this date.
7. Open Bank Account
- Use COI, PAN, and AoA/MoA.
- Banks require board resolutions and KYC of directors/shareholders.
Documents Required
| Category | Documents Required |
|---|---|
| Directors/Shareholders | PAN card, Aadhaar card, passport (for foreign nationals), latest utility bill, passport-size photo |
| Registered Office | Rent agreement or ownership proof, NOC from owner, latest electricity/water bill |
| Company Documents | MoA, AoA, Declaration (INC-9), Consent (DIR-2), Proof of Capital contribution |
| Others | DSC, DIN, Identity proofs, and address verification documents |
Key Eligibility Criteria
| Requirement | Details |
|---|---|
| Minimum Shareholders | 2 |
| Maximum Shareholders | 200 |
| Minimum Directors | 2 (1 must be resident in India for ≥182 days) |
| Minimum Capital | No minimum capital required (can start with ₹1) |
| Registered Office | Must be in India; can be residential or commercial |
Fees & Government Charges
| Component | Approx. Cost (₹) |
|---|---|
| DSC (per person) | 1,000–2,000 |
| Name reservation | 1,000 |
| SPICe+ filing (including PAN/TAN) | Included in MCA fees |
| Stamp duty (varies by state & capital) | ₹1,000–₹10,000 |
| Professional fees (CA/CS optional) | ₹5,000–₹10,000 |
| Total estimated cost | ₹7,000–₹15,000 |
Frequently Asked Questions (FAQs)
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Q1. How many people are needed to start a private limited company?
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Minimum 2 shareholders and 2 directors.
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Q2. Can one person start it?
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No, but you can start a One Person Company (OPC) instead.
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Q3. Is a physical office mandatory?
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Yes, a registered office in India is compulsory.
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Q4. How long does registration take?
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Usually 7–15 working days, depending on document verification.
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Q5. Can foreign nationals be directors?
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Yes, but one director must be a resident Indian.
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Q6. Is GST registration included automatically?
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No, it must be applied for separately on the GST portal.
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Q7. Can a salaried person be a director?
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Yes, unless their employment contract prohibits it.
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Q8. Is a company secretary needed?
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Not mandatory for small or new private limited companies.
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Q9. What happens if the proposed name is rejected?
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You can reapply with alternative names through SPICe+ Part A.
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Q10. Can I register without a CA or CS?
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Yes, but professional assistance is recommended to avoid form errors.
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Q11. What is a CIN?
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Corporate Identification Number, a unique ID given by the RoC.
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Q12. Can the name be changed later?
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Yes, through Form INC-24 after RoC approval.
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Q13. What if my registered office is rented?
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You need a rent agreement and NOC from the landlord.
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Q14. Is there a government fee exemption for startups?
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Some states offer stamp duty waivers for registered startups under DPIIT.
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Q15. What is the role of MoA and AoA?
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MoA defines the company's goals; AoA defines its management rules.
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Q16. Are PAN & TAN issued automatically?
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Yes, both are generated with the Certificate of Incorporation.
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Q17. Can I change directors later?
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Yes, using Form DIR-12 via the MCA portal.
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Q18. Is registration valid forever?
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Yes, as long as the company files annual returns and complies with MCA norms.
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Q19. What happens if annual filings are not done?
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Company may become inactive or struck off by the RoC.
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Q20. Can I open a bank account immediately after registration?
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Yes, with the COI, PAN, and board resolution.
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