Private limited company is the most prevalent and popular type of corporate legal entity in India the ministry of corporate affairs governs private limited company registration in India. The companies are incorporated and regulated under the companies Act 2013 and the company’s incorporation rules 2014.
Eligibility & requirements
To register a private limited company, a minimum of two persons to act as Directors and shareholders are required. The shareholders of a private limited company can be a corporate entity or a natural person. Director can only be a living person with one Director being a resident and Indian Citizen. A person is designated as a resident if he/she spends over 186 days in India. There are no restrictions on foreign companies or foreign nationals being Directors or shareholders of a private limited company. As, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and Shareholders of a Company with Foreign Direct Investment, incorporating a company is the preferred choice of entry to India for foreign promoters.
Companies registered in India must mandatorily maintain a registered office within India. In the case of leased property, the copy of lease deed for the registered office premises along with a NOC from Landlord and property tax receipt/water bill copy of the registered office property. In case of own property, copy of sale deed along with the electricity bill/property tax receipt/water bill copy of the registered office property.
Proof of incorporation of Company
Initially the applicant has to obtain the name of the Company through an online application. There after Registrar of Companies issues a Certificate of incorporation after scrutiny of Memorandum of Association and Articles of Association, the List addresses and signature of subscribers to these two documents and a resolution passed by them to subscribe to the shares of the Company and get it incorporated. The Directors are required to obtain a DIN – Directors Identification Number from the Registrar of Companies.
Documents required to apply for Registration
- Address proof of the Members. (Driving Licence/voter id/Passport)
- Identity proof of the Members.(PAN if Indian nationals)
- Identity proof of the Members.(Passport if foreign nationals)
- Registered office address.
- Bank Statement of Members.
- Lease agreement electricity bill (if Office is rented) (Latest month utility bill)
- NOC form landlord. (In case of own office space)
- Obtaining digital signature certificate.
- Up to 2 name options can be given in 1 RUN name approval request.
- Board resolution authorizing investment in the company.
Cost of Registration: Rs.6860/- + Govt fee
(Govt fee for One Lakh Authorized Capital is Rs.5,000/-)