A Comprehensive Guide to Private Limited Company Registration in India from Licit 360's blog

Starting a business is an exciting journey, but choosing the right business structure is a critical decision that can impact its success. For entrepreneurs in India, registering a Private Limited Company (PLC) is one of the most popular and beneficial options. In this blog, we’ll walk you through everything you need to know about Private Limited Company registration, its advantages, and how Licit360 can help streamline the process.

A Private Limited Company is a type of business entity in India governed by the Companies Act, 2013. It offers limited liability to its shareholders and imposes certain restrictions on ownership, making it ideal for startups and growing businesses.

Key features of a Private Limited Company include:

• Limited Liability: Shareholders are only liable for the unpaid amount of their shares.

• Separate Legal Entity: The company is distinct from its owners, enabling it to own assets, enter contracts, and incur liabilities in its name.

• Continuity: The company’s existence is not affected by changes in ownership or the death of shareholders.

1. Limited Liability Protection: Shareholders are protected from personal losses beyond their shareholding in the company.

2. Credibility: A Private Limited Company is viewed as more credible by clients, vendors, and financial institutions.

3. Ease of Raising Capital: Attracting equity funding and venture capital becomes more straightforward compared to other structures like sole proprietorships.

4. Tax Advantages: Companies are eligible for various tax benefits and exemptions under the Income Tax Act.

5. Brand Building: A Private Limited Company lends legitimacy and professionalism to your business.

Before you start the registration process, ensure that you meet the following requirements:

• Minimum Number of Members: At least 2 shareholders and 2 directors (who can be the same persons).

• Unique Company Name: A name that isn’t already registered or trademarked.

• Registered Office Address: A physical address in India that will serve as the company’s headquarters.

• Digital Signatures (DSC): For filing electronic documents with the Ministry of Corporate Affairs (MCA).

• Director Identification Number (DIN): Mandatory for all directors.

1. Obtain DSC and DIN: Apply for a Digital Signature Certificate and Director Identification Number for the directors.

2. Name Approval: Submit the proposed company name to the MCA through the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form.

3. Prepare MOA and AOA: Draft the Memorandum of Association (MOA) and Articles of Association (AOA).

4. File Incorporation Form: Submit the SPICe+ form along with supporting documents, including the company’s MOA, AOA, and proof of address.

5. PAN and TAN Application: Apply for the company’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).

6. Certificate of Incorporation: Upon successful verification, the MCA issues a Certificate of Incorporation, marking the official registration of your company.

• Directors and Shareholders: PAN card, Aadhaar card, and passport-sized photos.

• Proof of Registered Office: Rent agreement or sale deed, along with utility bills.

• Business Name: A name that aligns with the Companies Act, 2013 guidelines.

At Licit360, we understand the complexities of the registration process. Our expert team ensures that your company registration is completed seamlessly, offering:

• End-to-End Support: From document preparation to final submission.

• Compliance Assistance: Ensuring adherence to all legal requirements.

• Timely Updates: Keeping you informed at every stage of the process.

• Affordable Pricing: Cost-effective solutions tailored to your business needs.

1. Can a foreign national be a director in a Private Limited Company? Yes, foreign nationals can become directors, provided they have a valid DIN and meet other requirements.

2. How long does it take to register a Private Limited Company? The process typically takes 7-10 business days, depending on document verification and approval.

3. Is it mandatory to have a company secretary? No, a company secretary is not mandatory for a Private Limited Company with a small turnover, but one is required for compliance purposes as the company grows.

Registering a Private Limited Company is a significant step towards building a credible and scalable business. With the right guidance and support, the process can be straightforward and hassle-free. At Licit360, we’re here to help you turn your entrepreneurial dreams into reality. VisitLicit360 to learn more and get started today!