Private Limited Company

A company formed by minimum two persons as shareholders having the following features.

  • Name of the company ends with the words 'Private Limited'
  • Minimum paid up capital INR 100000
  • Minimum two Directors
  • Maximum number of members is limited to 50
  • Restriction for transfer of shares
  • Prohibits invitation to the public to subscribe shares of the company
  • Prohibits acceptance of deposit from the public.

Incorporation Of A Private Limited Company In India - Procedures And Steps Involved

Stage I - Pre-registration Process


        Basic requirements for registering a private limited company are as follows:

Requirements / Category Private
Shareholders / Promoters 2
Directors 2
Authorised Capital INR 100,000
Digital Signature 1

        The proposed Director should have a valid DIN (Director Identification Number) allotted by the Ministry of Corporate Affairs. One of the Directors should have a valid Digital Signature Certificate issued by the Certifying Authorities approved by the Ministry of Corporate Affairs.

It may take 3 to 5 working days for obtaining DIN. Digital Signature can be obtained in an hour.

Click here to get a DIN (Director Identification Number).

Click here to get a DigitalSignature.


State II - Name Availability

Company Registration in India starts with filing of an application for Company Name. The chosen name for a company should be unique all over India. Usually in a day or two, concerned ROC approves the name if the applied name is not same or closely similar to the name of an existing company and the proposed name is in accordance with the Guidelines for Name Availability issued by the Ministry of Corporate Affairs (MCA).

Click here to see the Table of Key Words / Rules controlling Authorised Capital.


Stage III - Documentation

On getting the company name approved by the office of ROC, the following documents need to be drafted in line with the requirements of Companies Act

  1. Memorandum of Association (MOA)
  2. Articles of Association (AOA)

On finalizing the MOA and AOA, necessary stamp duty needs to be paid and the same should be subscribed/ signed (by own hand and signature) by promoters (first shareholders) after writing his name, fathers' name, residential address and occupation. A registered company can subscribe these documents though a representative authorised by a resolution / specific power of attorney by the Company.


State IV - Filing and Registration

After execution of MOA and AOA, the same has to be field with the with ROC along with the following forms through MCA Portal:

  • Form 1 (Declaration)
  • Form 32 (Details of Directors)
  • Form 18 (Details of Registered Office of the company).

The office ROC will scrutinize the incorporation documents. If the documents are found in order, the Company will be registered and the Certificate of Incorporation will be issued by the Registrar.

Private Company can start commercial operations immediately after obtaining the Certificate of Incorporation.