What is a Private Limited Company?
The most preferred business structure for startups and growing businesses in India
A Private Limited Company is a privately held business entity incorporated under the Companies Act, 2013. It is the most popular form of business structure among startups, SMEs, and growing businesses in India due to its numerous advantages including limited liability, separate legal entity status, and ease of raising funds.
The company is registered with the Ministry of Corporate Affairs (MCA) and receives a unique Corporate Identification Number (CIN). A Private Limited Company must have a minimum of 2 directors and can have up to 200 shareholders. It offers limited liability protection to its shareholders, meaning personal assets are protected from business liabilities.
Limited Liability Protection
Separate Legal Entity
Easy Fund Raising
Enhanced Credibility
Key Features
Perpetual Existence
Company continues to exist regardless of changes in ownership or death of directors.
Easy Transferability
Shares can be easily transferred to new owners without affecting operations.
Business Continuity
Uninterrupted existence ensures business stability and stakeholder confidence.
Tax Benefits
Lower tax rates compared to other structures. Multiple deductions available under Income Tax Act.
Brand Building
Professional image attracts better talent, partnerships, and business opportunities.
Global Expansion
Easy to expand internationally. FDI allowed under automatic route in most sectors.
Important to Know
Key requirements for Private Limited Company registration:
- Minimum Directors: At least 2 directors required, at least 1 must be an Indian resident
- Maximum Directors: Up to 15 directors can be appointed (more with special resolution)
- Shareholders: Minimum 2, maximum 200 shareholders allowed
- Capital Requirement: No minimum paid-up capital required (can start with ₹1)
- Registered Office: Must have a registered address in India (can be residential)
Pricing Breakdown
Starts from ₹2,499 + GST (Government Fees and Stamp Duty Extra)
Who Should Register a Private Limited Company?
Ideal for entrepreneurs, startups, and growing businesses
Startups & Tech Ventures
Growing Businesses
Multiple Founders
B2B Service Providers
Businesses Seeking Loans
Export-Import Businesses
Eligibility Criteria
- Minimum Directors: 2 (at least 1 Indian resident)
- Maximum Directors: 15 (extendable to 20 with SR)
- Minimum Shareholders: 2 individuals or entities
- Maximum Shareholders: 200 (excluding employees)
- Minimum Capital: No minimum requirement
- Director Age: At least 18 years old
Documents Required for Company Registration
Keep these documents ready for quick and hassle-free registration
For All Directors & Shareholders
- PAN Card Self-attested copy of all directors and shareholders
- Aadhaar Card Self-attested copy for identity and address proof
- Passport Size Photo Recent colored photograph with white background
- Address Proof Any one:
- Passport
- Voter ID
- Driving License
- Utility Bill (not older than 2 months)
- Bank Statement Latest 3 months bank statement or cancelled cheque
Company-Specific Documents
Additional documents based on company setup
Registered Office Proof
- Rent Agreement (if rented property)
- NOC from owner (format provided)
- Utility Bill (Electricity/Water/Gas)
- Property Tax Receipt (if owned)
For NRI/Foreign Directors
- Notarized Passport Copy
- Overseas Address Proof
- Indian Embassy Attested Documents
- Resolution from Foreign Company (if applicable)
Corporate Shareholders
- Board Resolution for Investment
- Certificate of Incorporation
- MOA & AOA of Investing Company
- Authorized Signatory Proof
Document Tips for Faster Processing
Document Preparation Checklist
- PAN Card of all Directors
- Aadhaar Card of all Directors
- Passport Size Photos
- Address Proof (Any one)
- Bank Statement/Cancelled Cheque
- Office Address Proof
- Rent Agreement/NOC
- Utility Bill
- Director Consent (Form DIR-2)
- Declaration (Form INC-9)
State-Wise Stamp Duty for Private Limited Company Registration
Stamp duty for MoA and AoA varies by state
| State | MoA Stamp Duty | AoA Stamp Duty | Total (approx.) |
|---|---|---|---|
| Maharashtra | ₹200 | ₹300–500 | ₹500–700 |
| Delhi | ₹200 | ₹300–600 | ₹500–800 |
| Karnataka | ₹500–1,000 | ₹500–1,000 | ₹1,000–2,000 |
| Tamil Nadu | ₹300 | ₹300–500 | ₹600–800 |
| Uttar Pradesh | ₹200 | ₹200–500 | ₹400–700 |
| Gujarat | ₹100 | ₹5,000–12,500 (0.5% of capital, higher rates) | ₹5,100–12,600 |
| Rajasthan | ₹500 | ₹500–1,000 | ₹1,000–1,500 |
| West Bengal | ₹200 | ₹300–600 | ₹500–800 |
| Kerala | ₹200–500 | ₹1,000–5,000 | ₹1,200–5,500 |
| Madhya Pradesh | ₹200–500 | ₹500–2,000 | ₹700–2,500 |
Note: The figures above are indicative estimates based on a company with ₹1 lakh authorised capital. Actual charges may vary depending on the state of incorporation and applicable government notifications. Stamp duty is state-specific and generally increases with higher authorised capital. It is advisable to confirm the latest applicable rates with the respective state authorities or your CA/CS prior to incorporation filing.
Planning Insight: If your business operates remotely and the registered office location is flexible, incorporating in a lower stamp duty state such as Maharashtra, Delhi, or Uttar Pradesh may help reduce incorporation costs significantly compared to higher-duty states like Gujarat or Kerala. In some cases, the savings on stamp duty alone can range between ₹5,000–10,000.
Incorporation Timeline
What happens day by day, from DSC to Certificate of Incorporation
- Day 1–2
Digital Signature Certificate (DSC) Issuance
Directors apply for Class 3 DSCs through licensed providers such as eMudhra, Sify, or Capricorn. Aadhaar-based eSign verification is usually completed within a few hours, while USB token-based issuance may take 1–2 working days.
- Day 3–4
Company Name Reservation
Proposed company names are submitted through RUN or SPICe+ Part A. Approval generally takes 1–3 working days, provided the names comply with MCA naming rules and trademark guidelines. In case of rejection, a fresh application with alternate names must be submitted.
- Day 5–9
Documentation & SPICe+ Preparation
MoA and AoA are drafted by the CA/CS, including business activity clauses and internal governance provisions. SPICe+ Part B is prepared with director details, registered office information, subscriber details, and other incorporation particulars. Applicable stamp duty is calculated and paid during this stage.
- Day 10–12
Filing of Incorporation Forms
Incorporation documents and linked forms are uploaded on the MCA portal using the directors’ DSCs. After submission, an Application Reference Number (ARN) is generated. Aadhaar-authenticated filings are typically processed more quickly.
- Day 12–20
Registrar Review & Incorporation Approval
The Registrar of Companies (RoC) reviews the application, attached documents, and registered office proof. Additional clarifications or resubmissions may be requested if discrepancies are identified. Upon approval, the Certificate of Incorporation (CoI) is issued, and PAN/TAN are generated automatically.
Post-Incorporation Compliance Costs
Obtaining the Certificate of Incorporation is only the first step. Newly incorporated companies are required to complete several mandatory compliances within the initial months of operation, many of which involve additional statutory or professional costs.
| Compliance Requirement | Timeline | Approx. Cost / Notes |
|---|---|---|
| Commencement of Business Filing (INC-20A) | Within 180 days from incorporation | MCA filing fee is approximately ₹500. The company must first open its bank account and deposit the subscribed share capital before filing the declaration. |
| Auditor Appointment (ADT-1) | Within 30 days from incorporation | MCA filing fee is approximately ₹300. Statutory audit fees charged by CAs generally range between ₹5,000–20,000 annually depending on turnover and business complexity. |
| DIR-3 KYC for Directors | Annually before 30 September | No government fee if filed within the due date. Delayed filing attracts a late penalty of ₹5,000 per director. |
| GST Registration (where applicable) | Prior to commencement of taxable business activity | Government filing fee is nil. Professional assistance for GST registration typically ranges from ₹1,000–3,000. |
| Company Bank Account & Share Capital Deposit | Immediately after incorporation | Most banks do not charge account opening fees for companies. The subscribed share capital must generally be deposited into the company bank account after incorporation. |
| Company Seal, Stamp & Basic Stationery | As required | Expenses for company seal, rubber stamp, and initial stationery/letterhead printing generally range between ₹500–1,000. |
Our Company Registration Process
Step-by-step guide to incorporate your Private Limited Company
Document Collection & Verification
We collect and verify all required documents from directors and shareholders. Our experts review for accuracy to ensure smooth processing.
- Collect PAN, Aadhaar, and address proofs
- Verify office address documents
- Check name availability criteria
Digital Signature (DSC) Application
We apply for Digital Signature Certificates for all directors. DSC is required for filing electronic forms with MCA.
- Fill DSC application forms
- Complete video verification
- Download DSC tokens
Director Identification Number (DIN)
We apply for DIN for all directors who don't have one. DIN is a unique identification number required for all company directors.
- File Form DIR-3 for new DIN
- Attach identity and address proofs
- Get DIN approval from MCA
Company Name Approval
We file RUN (Reserve Unique Name) form with MCA to get your company name approved. We suggest 2 unique names as per MCA guidelines.
- Conduct name availability search
- File RUN form with 2 proposed names
- Get name approval (valid for 20 days)
Incorporation Filing (SPICe+ Form)
We file the integrated SPICe+ form that combines multiple registrations - Company Incorporation, PAN, TAN, EPFO, ESIC, GST, and Bank Account Opening.
- Part A: Company name and reservation details
- Part B: Business details, capital structure, directors info
- Attachments: Upload MOA, AOA, and all supporting documents
- Digital Signature: Sign forms using DSC of all subscribers
Certificate of Incorporation
Once MCA approves your application, we receive the Certificate of Incorporation with your unique CIN. We then help you with post-incorporation compliances.
- Receive Certificate of Incorporation
- Obtain PAN and TAN for company
- Open company bank account
Actual processing time may vary based on MCA workload, document verification, and name approval availability.
Important to Know
Important Notes- Company name should be unique and not resemble any existing company or trademark
- At least one director must have stayed in India for 182 days in the previous calendar year
- All forms are filed electronically - no physical submission required
- Certificate of Incorporation is conclusive proof of company formation
- Post-incorporation compliance includes appointing first auditor and conducting first board meeting
Frequently Asked Questions
A Private Limited Company is a business entity registered under the Companies Act, 2013. It provides limited liability protection to its owners (shareholders), has a separate legal identity from its owners, and can have 2-200 shareholders. It's the most popular business structure for startups and growing businesses in India.
There is no minimum capital requirement for registering a Private Limited Company in India. You can start with as low as ₹1 as paid-up capital. However, the authorized capital (maximum capital the company can raise) should be decided based on your business plans. The standard authorized capital is ₹1,00,000.
A minimum of 2 directors are required to register a Private Limited Company. At least one director must be an Indian resident (stayed in India for at least 182 days in the previous calendar year). You can have up to 15 directors (extendable to 20 with a special resolution).
The main documents required are: PAN and Aadhaar of all directors, passport size photos, address proof (passport/voter ID/driving license), office address proof (rent agreement/utility bill), and NOC from the property owner if the office is rented. Foreign nationals need additional attested documents.
Typically, it takes 10-15 working days to complete the registration process. This includes time for document verification (1-2 days), DSC application (1-2 days), name approval (2-3 days), and incorporation filing (3-5 days). Delays may occur if MCA raises queries or requests additional documents.
Yes, foreign nationals can be directors in an Indian Private Limited Company. However, at least one director must be an Indian resident. Foreign directors need to provide notarized passport copies, overseas address proof, and other KYC documents attested by the Indian Embassy.
DSC (Digital Signature Certificate) is an electronic signature used to sign documents digitally. It's mandatory for all directors to have DSC for filing forms with MCA. We help you obtain Class 3 DSC which is required for company registration and annual compliance filing.
DIN (Director Identification Number) is a unique 8-digit number assigned to each director by MCA. It's mandatory for all directors. We apply for DIN on your behalf by filing Form DIR-3 with your identity and address proofs. Existing directors can use their current DIN.
Yes, you can convert your existing proprietorship, partnership, or LLP into a Private Limited Company. The process involves valuation of existing business, filing conversion forms with MCA, and transferring assets to the new company. We provide end-to-end assistance for business conversion.
Annual compliance includes: filing Annual Return (Form MGT-7) within 60 days of AGM, filing Financial Statements (Form AOC-4) within 30 days of AGM, conducting statutory audit, holding minimum 4 board meetings per year, and filing Income Tax Returns. Our Premium package includes first-year compliance.
Authorized capital is the maximum amount of share capital the company is authorized to issue (stated in MOA). Paid-up capital is the actual amount received from shareholders by issuing shares. There's no minimum paid-up capital requirement, but stamp duty is calculated on authorized capital.
Yes, you can use your residential address as the registered office address. You'll need to provide utility bills (not older than 2 months) and NOC from the owner (if rented). The registered office address is where all official communications will be sent.
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