Enrolling a company is quite simple nowadays. The ministry of corporate affairs (MCA) has introduced an online portal for company registration. But before thinking about registering a company it is necessary for you to choose the right company structure for your business as it will help you do business efficiently and achieve your goals. In India, every business must register itself as a part of mandatory legal compliance.

Before learning to register a company let’s understand the various types of business structures in India.

1. One person company (OPC)

It is the best way to start a company having only one owner. It allows the sole proprietor to carry on his work without giving up their corporate work.

2. limited company

It is a voluntary association of members incorporated under the company’s act. This company has a separate legal existence and the liability of its members is limited. That offers shares to general public for raising capital.

3. Private limited company

As the name suggests it is a privately owned business entity. It consists of stakeholders and a board of directors. The liability of the members of a Pvt ltd company is limited to the number of shares held by them.

According to sec 2 (68) of the companies act, 2013 the definition of a private limited company is given as:

A company must have a minimum paid-up share capital as prescribed and which by its articles

  • Restricts the right to transfer its shares
  • Except the one person company, limits the number of members to two hundred
  • Prohibits invitation to the public for subscribing to the securities of the company.

Characteristics of private ltd company


Like any other business structure, a minimum of 2 shareholders or directors is a must to start such a type of company. The maximum cap for a number of members is 200 so that it is not restricted to a small entity only.

Limited liability structure

The liability of the members in a company is limited to the total shares contributed by them. But the personal assets of the shareholders aren’t at risk.

Perpetual Succession

This is a separate legal entity. That means if all members of the entity die or if the business becomes bankrupt, the company will still exist in the eyes of law. The life of the company will not be affected until dissolved by way of dissolution.

Minimum paid-up capital

As per MCA, the minimum paid-up capital for a private limited company is 1 lakh. But as per the company amendment act, 2015 government has relaxed the minimum requirement for paid-up capital. Therefore, there is now no requirement for any minimum capital to be invested to start a private limited company. However, it is subject to change from time to time as prescribed by MCA.

Enhanced market value

Vendors and suppliers trust a registered Pvt ltd company over a non-registered company. And information regarding the registered companies can be obtained from the MOA website.

Easy transfer of ownership

It is quite easy to transfer equity to new members and issue shares to them.

Easy equity funding

Startup companies can easily raise from the market on an equity basis.

Checklist for private limited company registration

1) Minimum of 2 persons/ directors

In order to register a private limited company a minimum of two persons are required who must act as shareholders or directors. A company can have a maximum of 200 shareholders and 15 directors.

2) Minimum capital requirement

As per the company’s amendment act, 2015 there is no minimum paid up capital required for incorporating a private ltd company.

3) Unique name for the company

The selected name for your company has to be unique; the suggested name should not match any other company. And the name must not go against the copyrights act or trademarks law.

4) Registered office

The registered office place need not be necessarily commercial. A rented house can also be registered as an office after getting NOC from the landlord.

Documents required for private limited company registration

  • PAN Card of all directors
  • Passport copy of directors (if foreign nationals)
  • Passport sized photographs of all directors
  • ID proof of directors (either Aadhaar card or Voter ID)
  • Rent agreement or property papers
  • NOC from the landlord
  • Electricity bill or water bill of company place
  • Copy of sale deed or property if personal property
  • For foreign nationals, a notarized copy of passport is necessary

Private limited company registration process

The process of registration for Pvt ltd is completely online. So, you don’t have to visit any office personally. We at taxpotter help you completely in company registration.

Steps involved for private limited company registration

  • Application for DSC
  • Application for DIN
  • Name approval of the company
  • Filing memorandum of association (MOA) and article of association (AOA)
  • Apply for PAN, TAN, and opening bank account
  • Certificate of incorporation

Application for DSC

The first step for registering Pvt ltd company is applying for a digital signature certificate with the ministry of corporate affairs. It is an electronic legal document used for the verification of information.

Application for DIN

The next crucial step is the application director identification number. This is needed to check whether all compliances have been met while recruiting the directors

Filing MOA and AOA

The applicant has to file these two documents online. These documents ensure the legal certainty of company formation. This process has to be carried out through the MCA portal.

Name approval of the company

An applicant has to file at least 3 unique names for a company out of which one will be selected.

Before suggesting the names you need to check the availability of names from the MCA portal.

Apply for PAN, TAN, and opening bank account

After all filings apply for PAN and TAN and then open a bank account by submitting them.

Certificate of incorporation

After reviewing the application by MCA the applicant will be granted a certificate of incorporation.

It is a legal document that provides legal status to your company


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