The most preferred business structure for entrepreneurs in India — offering limited liability, legal identity, and easy access to funding. Regulated by MCA under the Companies Act, 2013.
Name of Proposed Company
Significance of the Name
Objective of the Business
DIN of Directors (if available)
Class II Digital Signatures
KYC of All Promoters
Identity Proof of Directors
Address Proof of Directors
Authorised Capital Structure
Registered Office Address + Proof
NoC from Office Owner
A Private Limited Company is one of the most popular forms of a legal entity for doing business in India. It is regulated by the Ministry of Corporate Affairs and incorporated under the provisions of The Companies Act, 2013.
Private Limited Companies are mainly of two types:
The most common structure — the liability of members is limited to the unpaid amount on their shares. Ideal for startups and growing businesses seeking investments.
Members' liability is limited to the amount they have agreed to contribute in the event of winding up. Often used by clubs, associations, and NGO-type entities.
Separate Legal Entity — Unlike Sole Proprietorship, a Private Limited Company enjoys a separate legal status. Even if members or management change, the company continues to exist.
Asset Ownership — The company can hold assets in its own name, separate from its shareholders' personal assets.
Limited Liability — Members' liability is limited to the shares held. No personal liability for company debts beyond the shareholding amount.
Superior Creditworthiness — Creditworthiness of a registered company is better than any other form of business organisation.
Minimum Requirements — At least TWO Directors and TWO Members are required for formation of a Private Limited Company.
Liability of the members of the Company is limited only to the extent of the shares subscribed / liability undertaken by the members of the company.
Creditworthiness of the registered business is more than an unregistered business, allowing the company to take loans from Banks and Financial Institutions easily.
The income of the company is taxed at a flat rate under Income Tax Act, 1961, whatsoever may be the turnover of the company — clear and predictable tax liability.
A company enjoys the status of a separate legal entity and does not come to an end by death or change of management or owners, unless legally dissolved.
A Company has the capacity to initiate legal proceedings against any person or entity in its own name before the court of law — a right not available to unregistered entities.
A Private Limited Company is registered under the Companies Act, 2013 through the procedure prescribed under the Act and Rules and Regulations made thereunder.
The proposed name of the Company is applied by the promoter by paying requisite fee online through RUN (Reserve Unique Name) Web Service. The applied name will be processed by the Central Registration Centre (CRC). To avoid rejection, the name must follow the guidelines provided under Companies (Incorporation) Rules, 2014. Once approved, the name is available for 20 days to complete incorporation. The name must end with "Private Limited".
Digital Signatures of all members and at least one Director need to be obtained for incorporation. The following KYC details are required:
Once the name gets approved by the department, the documents — including the Memorandum of Association (MOA) and Articles of Association (AOA) — are prepared as per the guidelines given under the Act and Rules for incorporation of the Company.
Incorporation of the Company is done through SPICe (Simplified Proforma for Incorporating Company electronically). Form SPICe – INC-32 is filed along with eMOA (INC-33) and eAOA (INC-34) with the Central Registration Centre (CRC) of Ministry of Corporate Affairs, along with requisite Stamp Duty charges.
Once the entire process is completed and the department is satisfied with all the compliances, the Certificate of Incorporation will be issued along with allotment of PAN (Permanent Account Number) and TAN (Tax Deduction Account Number). The proposed company becomes a separate legal entity and can immediately transact business in its own name.
