Business
8 FAQs About Private Limited Company Registration

Starting a new business is an exciting proposition. However, to ensure compliance with the Indian laws, you must have your business registered in one of the existing corporate structures. Given the flexibility and limited liability perks, incorporating ventures as a private limited company remains a favoured choice for small and medium enterprises. Whether you want to become a seller on an online marketplace, obtain funding, or file GST returns, you must have a valid registration. While the process of private limited company registration has been simplified with the SPICe+(INC-32) Form, there still remain some questions around the process. This article covers the top 8 FAQs on the topic to offer comprehensive insights.
Question 1: What are the prerequisites to incorporate a private limited firm?
Following are essential prerequisites for the incorporation of a private limited company:
- The company must have at least 2 members to act as shareholders (maximum number is 200).
- The company must have at least 2 directors (maximum 15), out of whom, at least one should be an Indian resident.
- The company should have a valid registered office in India with proof of address.
- There is no minimum authorised share capital requirement for private limited company registrations.
Question 2: What are the documents needed to register a private limited company?
The documents needed vary depending on the nationality status of the directors/subscribers. The comprehensive break-down is outlined below:
When directors and subscribers are Indian nationals:
Proof of office address which may be a rental agreement/ownership deed (sales deed).
Copies of electricity, water, or gas bill not older than two months.
Copy of name approval, in case the proposed company name has words or expressions that require approval from the central government.
Attachment of trademark registration certificate/application is required if the name proposed is based on a registered trademark or has an application pending for trademark registration under the Trade Marks Act.
An Affidavit created on Stamp paper with signatures from all subscribers of the company, stating that they want to become shareholders of the said company.
An NOC (no objection letter) from the owner of the property, if the office is rented/leased.
PAN card, proof of identity and address is essential for directors.
When directors and subscribers are foreign nationals:
Passport
Address proof documents which may be residence card, bank statement, driving licence, or a government issued form of ID containing address details.
Question 3: What is the process of registering a private limited company in India?
The process of private limited company registration has been simplified with the introduction of SPICe+(INC-32) Form. This integrated form lets you complete various compliance registrations in one-go. Here’s a step-by-step guide to private limited company registrations in India:
- Obtain DSC for all subscribers and directors.
- Apply for DIN or director identification number for proposed directors.
- Apply for reservation of company name via Part-A of the SPICe+ Form.
- Fill out Part-B of the SPICe+ Form. Submit the signed PFD on the MCA portal.
- Digitally sign and submit the e-MoA and e-AoA.
When you fill out Part-B, you will be simultaneously applying for the issue of PAN, TAN, EPFO registration, ESIC registration, professional tax registration (Maharashtra), opening a bank account in the company’s name, and GSTIN allotment (if applicable).
Question 5: What are the benefits of private limited registration in India?
Registering a private limited company in India offers the following benefits:
- The company is established as a separate legal entity, responsible for managing its own assets and liabilities.
- Limited liability of members ensures protection of personal assets.
- The company has perpetual succession, meaning the death or departure of a director/subscriber does not dissolve the company.
- There is zero authorised share capital required to get a private limited company registration, making it favourable for small and medium businesses.
- Registration boosts the credibility of the company, making it easier to secure funding from banks and NBFCs.
Question 5: Is there a maximum limit on the number of directors who can use the SPICe+ Form to obtain a DIN?
Yes. According to the guidelines of the form, up to three directors can avail of the integrated form for allotment of DIN. If you wish to have more than 3 directors and more than 3 need DIN allotments, you can get the company incorporated with 3 directors and have the rest appointed as new directors after the incorporation.
Question 6: What is DSC and why is it needed?
DSC is an abbreviation for a digital signature certificate. It is an electronic substitute for the traditional, physical signature. Company directors and subscribers need to have Class 3 DSCs to electronically sign documents of a private limited company registration in India since the SPICe+ Form needs to be submitted online. DSCs can be obtained from certified authorities.
Question 7: How long does it take to get the Certificate of Registration?
It typically takes around 15-18 days for registering a private limited company in India. If all the submitted documents are in order, the Certificate of Registration may be issued by the end of this period.
Question 8: Do I have to apply for PAN and TAN separately after submitting the SPICe+ Form?
PAN and TAN applications are integrated into the SPICe+ Form. Once the form is approved, you will be allotted a valid PAN and TAN by the IT Department.
Conclusion
Registering a private limited company can feel like a daunting task, but with the help of the above FAQS, you can streamline the process. The eight FAQs mentioned shed light on the documents needed, eligibility, registration process, and time frames to help you understand the process comprehensively.

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