How to Incorporate Private Limited Company?

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To know more about how to incorporate private limited company, contact us immeditely.

What is a Private Limited Company?

As defined by Section 2 (68) of the Companies Act 2013, a private company is a company whose Article of Association (AoA) prevents the transfer of its shares, along with this, it also prevents a large number of the public from subscribing to the same.

In simple words, a private limited company is a business entity with private ownership. It is usually owned by non-governmental organizations or relatively small shareholders or members of a company. 

Who governs the private limited company in India?

The incorporation of the private limited company is governed by the Companies Act, 2013. 

Before moving forward, let's discuss the basic difference between different companies to establish a clear understanding -

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Important Factors of Different Forms of Company

Private Limited Company

Important Factors -
Incorporated under Company Act, 2013
Minimum 2 members and 2 directors are required
Stakeholders have control over business
Duration of incorporation is 12-15 days

Public Limited Company

Important Factors -
Incorporated under Company Act, 2013
Minimum three directors are required for fomation
Stakeholders have control over business
Duration of incorporation is 15-20 days

Limited Liability Company

Important Factors -
Incorporated under Limited Liability Act, 2008
At least two partners will be required for fomation
Partners have control over business
Duration of incorporation is 12-15 days

Nidhi Company

Important Factors -
Incorporated under Section 406 of Companies Act
At least seven members required for fomation
Controlled by RBI guidelines
Duration of incorporation is 15 days approx

Benefits of Private Limited Company


One of the major benefits of the private limited company is limited liability. During financial distress, limited liability ensures that the members do not have to pay more than the nominal value of the share held by the member.

For instance, in case the company is not able to pay off the loan, the members of the company will only be liable to pay the amount they own towards their shareholding. Thus, apart from this, a member is not liable to pay the unpaid amount of the loan.

For an online company registration, you do not require minimum capital. This means that you can commence the company with the mere amount of Rs. 1 lakh as a total Authorized Share of Capital.

A separate legal entity means that the liability and assets of the directors of the company are not the same as the assets and liabilities of the company. Hence, a separate legal entity separates the management from the ownership. 

Perpetual succession means the uninterrupted existence of the company. That means the company won’t be affected by death, bankruptcy, departure, etc of any member. 

For instance, if out of 200 members of the private limited company, one member dies or leaves the company, an online company registration will exist uninterruptedly.

As the details of the private limited company are public, which builds the authenticity of the company. Credibility allows the customers to trust the company. 

A private limited company has the authority to allow the promoters to raise the equity funds from the Stock Exchange, Private Equity Firms, so on and forth. 

Types of Private Limited Company

1. Company Limited by Shares

Under this, as mentioned by the Memorandum of Association (MoA) the liability is limited to a nominal amount of share only. Hence, as a shareholder, you don’t have to pay more than the capital invested in the company. 

2. Company Limited by Guarantee

Under this, the liability of the member is limited to the liability undertaken by each member as per the Memorandum of Association (MoA). Thus, a member can not be accountable for the sum more than the guaranteed amount.

In simpler words, a shareholder will pay the nominal amount at the time of the company winding up. 

3. Unlimited Companies

As the name implies, it is the corporation that does not have any restriction on its number of liability of the members. Thus, the liability of the member will increase along with the liability and debts of the company. 

Consequently, the unlimited creditor of the company can impose the debt and liabilities of the company on the shareholders at the time of winding-up.

Documents Required For Pvt Ltd Registration in India | Documents Required For Online Company Registration

Share capital amount and preferred ratio shareholding.

If you are the owner of the premises, you are required to submit the ownership and sale deed.

In case of rent, you are required to submit the rent agreement along with NOC (No Objection Certificate) from the owner of the property.

PAN card of the directors for identity proof.

Address proof of the registered office, for this, you can submit the electricity bill, telephone bill, etc.

For the address proof of the directors, you are required to submit the voter ID card, Driving Licensing, Passport, etc.

Directors and shareholders occupation details.

Affidavits will be required for non-acceptance.

Passport size photographs of the directors as well as of the shareholders.

Subscriber sheet of Memorandum of Association (MoA) and Article of Association (AOA).

In the case of a foreign national member, you are required to submit proof of your nationality. 

Our consultants and experienced team are equipped with necessary resources which will assist you in providing documents for pvt ltd registration India. Moreover, we care for our client which is why we believing in educating our client regarding how to incorporate private limited company to ensure complete transparency. 

How to Incorporate Private Limited Company? (Online Company Registration Process)

First, check the availability of the name of the company (for online company registraton).

Once the name of the company is finalized, apply for a Digital Signature Certificate (DSC) and Director Identification Number (DIN).

Then, to register the private limited company, fill the application for Memorandum of Association (MoA) and Article of Association (AoA).

Later, file an application for the PAN and TAN of the company.

With PAN and TAN, the certificate of incorporation will be issued.

Lastly, on the name of the company open a current account.

Moreover, the application form will be submitted along with the required documents.

If required by CPCB, the additional information will be submitted.

At last, an EPR certificate will be obtained from the CPCB.

For online company registration JR Compliance - pvt ltd company registration consultants will assist you throughout the pvt ltd registration India process to ensure proper documentation, helps in checking the availability of the company’s name, filling the application, etc. 

Our services are not limited to the process of documentation and application but we also ensure proper coordination, follow-ups, and acknowledgment by keeping clients’ needs in mind because we care for client's time contraints.

Our Role in Pvt Ltd Registration India | Our Role as Pvt Ltd Company Registration Consultants

Our online company registration consultants will provide you professional assistance throughout the process of pvt ltd registration India.

We will assist you in the process of documentation to ensure the availability of the required documents. 

Our expert and experienced team will help you in filling the application form. 

Our consultants will provide you bank account opening support. 

We provide you with a DSC and DIN number that is the essential requirement for private company registration. 

In case of any query, we will provide you the finest solution. 

Ministry of corporate affiars


To recapitulate, before pvt ltd registration India, it is essential to understand how to incorporate private limited company as it allows you to keep track of every aspect of pvt ltd registration India. Moreover, inaccurate or wrong information could delay the registration. 

To make the process of pvt ltd registration India unchallenging, our pvt ltd registration India consultant team will guide you regarding online company registration process to make process hassle-free and  will remove all the challenges as we comprise the experience of 8+ years. Above all, we guarantee to avoid any inaccuracy. 

Hence, for expert and professional services, contact us immediately.

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