How To Set Up A Private Limited Company in India

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A private limited company is the most popular Company Formation in India. Not only the Indian citizens but also the foreign investors can form the private limited company in India as a wholly-owned subsidiary. It is a small entity of business held by a small group of people.

The private limited company regulation was started under the Company Act. The governing body of the companies in the Ministry of Corporate Affairs is also known as MCA. It must be registered with pre-defined objects and owned by the shareholders that are actually a small group of people. It needs a minimum of two shareholders with a non-transferable share worth Rs. 100,000 as of the capital. Under the Company Acts, foreign residents and NRIs also able to form a private limited company in India. It is the most popular business structure for startups as well.

As public companies, it will not use any public funds. As smaller in size, the private limited companies operate with their own financial resources. The private limited companies can transform it into a public company when they are able to meet certain requirements set by the Registrar of Company fees.

How you can register a private limited company in India?

There is a fixed process for a private limited Company Formation in India as directed by the Ministry of Corporate Affairs.

Approval of name


For the company name, the Reserve Unique Name or RUN portal allows two suggestions for the name. On the other hand, another section of the RUN portal checks the availability of the name. You can also apply for name approval while filling up the SPICe (INC-32) form. In this step for certification, you need to submit documents for the resolution of the parent company to use the trademark or mane name and intention for incorporating an Indian subsidiary and certificate of incorporation for the foreign companies in English.

Digital Signature

The digital signature is the identity of the director. The electronic copy of the signature needs three to seven working days to get the DSC form online from any specific Certifying Authorities. All directors mush have digital signatures that are valid for two years.

Director Identification Number

It is mandatory for every company’s director to have an eight-digit Director Identification Number or DIN. An individual director can possess only one DIN though he or she is the director of multiple business entities.

SPICe Form

It incorporates three different forms like INC-32, INC-33, and INC-34. The first one, INC-32 is a detailed online form that has the application for DIN, company name reservation, and incorporation of the company. The applicant has to attach different types of documents like utility bill’s copy, Article of Association, office address proof, etc. The INC-33 will have the electronic form of the Memorandum of Association that outlines the Charter of Company. Form No. INC-34 is the electronic format where the applicants insert the Articles of Association (internal regulations of the company).

After the approval, the Registrar of Companies (RoC) provides the company with a Corporate Identity Number (CIN) that is a 21 digit unique code for the particular company.


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