A Private Limited Company is one of the most preferred types of business legal entities in India. The legal process of a private limited company registration primarily involves the submission of various papers and documents to the appropriate authorities. The document submission is an essential aspect of a business registration process which helps businesses & their shareholders gain a legal identity.
An Overview on Private Limited Company
A private limited company is a type of company structure in which the ownership of the company is limited to a small number of individuals/shareholders, and the company’s shares cannot be transferred publicly. In such companies, the shareholders’ liability is limited to the number of shares subscribed. In case, the business faces an event of debts or obligations, the personal assets of the shareholders are not at risk.
Majorly, small and medium-sized companies choose private limited company structure because they provide a legal framework with unlimited business growth and limited liability. The provision of limited liability in private limited companies attracts investors more as it enables them to participate in a business with higher growth possibilities without putting their personal assets at stake. This is the reason, pvt ltd company registration trend is gaining more attraction.
Private limited companies are one of the highly chosen options for business owners as well as investors since they provide flexibility and effective ways to set up and commence a business.
What Are the Documents Required for Pvt Ltd Company Registration?
If you are on your path to establishing a Pvt limited company, it’s important to have some specific documents. Some key documents required for private limited company registration are as below;
Indian Nationals
In case, a proposed director is an Indian, they should arrange scanned and self-attested photocopies of;
- PAN Card (Mandatory)
- Any Govt. ID Proof: Voter’s ID Card, Passport or Driving License
- Address Proof:
- Bank Statement
- Any Utility bills including Mobile/Telephone or Electricity bill
- Passport size photograph
- Specimen signature
Foreign Nationals
In case a director is a foreign national, he/she must have scanned and self-attested copies of:
- Passport (mandatory)
- PAN CARD (if any)
- Identity Proofs: Voter’s ID/Passport or Driving License
- Residential Address Proof of the country he is resident of
- Latest bank statement
- Telephone/Mobile or Electricity bill
- Passport size photograph
- Specimen Signature
Note: All the above-mentioned documents should be notarized especially in case, an NRI is currently in India or a Commonwealth country. All the documents should be notarized or attested by the Indian embassy in case he is in a Non-Commonwealth Country.
Address Proof of Company
For address proof of the company, the following documents are needed;
- Latest Utility Bill i.e. Gas/Electricity or Telephone bill (not older than 2 months)
- Notarized Rental Agreement
- Latest Rent Receipt
- NOC from the owner of the property
Note: The utility bill provided must not be more than two months later.
What Is the Process of Pvt Company Registration in India?
A business owner/ entrepreneur is required to undergo certain steps to get their pvt company registration done in India. Those steps are described below;
- Choose & Seek Name Approval
First, it’s important to pick a unique name for your company and obtain approval for your business name from the Ministry of Corporate Affairs (MCA). Two names are proposed for approval and one name will be approved by the pertaining authority as per the Companies Act 2013. The name approval process may take place 1-2 business days.
- Acquire Digital Signature
Acquire Digital Signature for the proposed directors of the company. It is a must document while submitting E forms for incorporation of company. Generally, one can obtain Digital Signature within 4-5 business days.
- Submit Incorporation Application
Post obtaining the digital signature, you are all set to submit the incorporation application. This application can be filled out through the SPICe Form with the MCA. Even if the company name approval is not obtained but the name is available, no issue would occur throughout the incorporation process. However, in case of non-availability of the name, the incorporation documents must be submitted.
Post submission of the incorporation application, it will undergo multiple checks and verification processes. After successful verification, the applicant will obtain a ‘Certificate of Incorporation’ for his pvt ltd company including PAN and TAN of company and DIN of Directors.
Some other compliances are required to follow even after obtaining a Certificate of Incorporation for commencing your pvt ltd company operations, and transactions smoothly.
Key Takeaway
Among several business frameworks in India, private limited company structure is the most picked ones due to its limited liability and unlimited growth possibility provision. It is necessary to obtain certain certificates and arrange some documents required for pvt ltd company registration in India.
