Key Advantages
- Personal Asset Protection: Limits the financial liability of directors to their shareholding.
- Enhanced Business Reputation: Boosts the trust of clients, vendors, and financial institutions.
- Access to Capital: Easier to attract investors and secure funding.
- Ideal for Startups: Preferred structure for innovative ventures and early-stage businesses.
- Investor-Friendly Framework: Popular among angel investors and venture capitalists.
Basic Eligibility Criteria
- Minimum of 2 directors and 2 shareholders
- No requirement for minimum capital
- Maximum 15 directors permitted
- At least one director must be an Indian resident
- Can be started with zero paid-up capital
What is a Private Limited Company?
A Private Limited Company is one of the most favored business structures for entrepreneurs in India, particularly small and mid-sized enterprises. According to the Companies Act, 2013, such companies are privately held with a limit of 200 shareholders.
Upon registration, the company is recognized as a separate legal entity, distinct from its owners and managers. This means it continues to exist even in the event of a director or shareholder’s death. Registering a Private Limited Company is an essential step toward building a legally sound and scalable business.
The Ministry of Corporate Affairs (MCA) oversees the registration process, and the Companies Act governs its legal framework.
Why Choose a Private Limited Company?
- Easy Ownership Transfer
- Limited Liability Protection
- Uninterrupted Business Continuity
- Boosts Brand Credibility and Trust
Documents Required for Registration:
Personal Documents
- Passport-sized photograph
- PAN card (self-attested) of directors and members
- DIN (if already allotted)
- DSC (Digital Signature Certificate) for all directors
- Government-issued ID proof (Passport, Voter ID, Aadhaar, or Driving License)
- Address proof (Recent utility bill, bank statement, or phone bill – not older than 2 months)
Office Address Documents
- For rented/leased premises:
- NOC from property owner
- Lease agreement
- Utility bill (Electricity/Phone) not older than 2 months
- For owned premises:
- NOC from owner (if applicable)
- Property ownership documents
- Recent utility bill
Additional Information Required
- Authorized & paid-up capital details
- Number and shareholding of initial subscribers
- Occupation, education, email, and contact details of directors/members
- Proposed business objectives
- Place of birth and current residential address duration
Registration Process Using SPICe+ Form:
The MCA replaced the older SPICe (INC-32) form with SPICe+, an integrated web-based application form that combines several services into one process.
Step 1: Name Reservation (SPICe+ Part A)
Submit your proposed company name via Part A of the SPICe+ form on the MCA Portal. Ensure that the name is available and does not conflict with any registered trademarks.
Step 2: Incorporation Application (SPICe+ Part B)
Fill Part B with incorporation details, including registered address, business activity, director/member details, and capital structure.
Step 3: Generate PDF and Affix DSC
Download the filled SPICe+ form as a PDF and digitally sign it using a valid DSC.
Step 4: Submit to MCA
Upload the digitally signed form along with other linked forms on the MCA portal.
Step 5: Declaration of Subscribers and First Directors (Form INC-9)
The INC-9 declaration form is now auto-generated in PDF format. It must be filed electronically unless:
- More than 20 directors/subscribers
- Any director/subscriber lacks both PAN and DIN
Recent Amendments & Key Compliance Updates
- No SRN required: The name reserved in Part A will auto-appear in Part B
- Mandatory ESIC & EPFO Registration: Required for companies incorporated after Feb 23, 2020
- Profession Tax Registration: Mandatory in Maharashtra
- Bank Account Opening: Must apply during registration via AGILE-PRO web form
- Electronic Filing of MoA and AoA: e-MoA (INC-33) and e-AoA (INC-34) are mandatory for up to 7 subscribers
MoA/AoA Submission Guidelines Based on Subscriber Type
| Case | Forms Required |
|---|---|
| Non-Individual (outside India) | SPICe+ (INC-32) with notarized/apostilled MoA & AoA |
| Non-Individual (in India) | SPICe+ with e-MoA & e-AoA |
| Indian National – not a director | SPICe+ with e-MoA & e-AoA |
| Indian National – also a director | SPICe+ with e-MoA & e-AoA |
| Foreign National with DIN & business visa | SPICe+ with e-MoA & e-AoA (Visa proof mandatory) |
| Foreign National with DIN but no business visa | SPICe+ with apostilled MoA & AoA |
| Foreign National without DIN | SPICe+ with apostilled MoA & AoA |
Note: For more than 7 subscribers, physical MoA and AoA must be attached in SPICe+ form.
Statutory Return Filing
Companies that obtain EPFO/ESIC numbers via SPICe+ must file statutory returns only when applicable thresholds are crossed.