PRIVATE LIMITED COMPANY

Picture starting your entrepreneurial venture—with the freedom to innovate, create, and expand—without worrying about putting your personal fortune at risk. That’s what a private limited company does for entrepreneurs and startups in India. It is the most sought-after business form in India, particularly for startups and expanding businesses as it provides the ideal combination of flexibility, limited liability, and trustworthiness with all the secrecy and control.

Documents Required

1. Documents required from Shareholders and Directors

2. Documents for Registered Office Address

3. Other Documents:

Identity Proof (PAN Card / Passport )
Address Proof (Aadhaar Card / Voter ID / Driving License / Passport )
Proof of Residence (Bank Statement / Utility Bills such as Electricity, Gas, Water – not older than 2 months )
Passport-sized Photographs

Rent Agreement / Lease Deed / Ownership Proof
NOC ( No Objection Certificate) from the Owner
Utility Bills – Not older than two months

Declaration by the First Directors and Subscribers (Form INC-9)
Consent to Act as Director (Form DIR-2)
Board Resolution / Authorization Letter (if applicable)
Professional Certification

Registration Process

Apply for a Digital Signature (DSC): obtain a DSC for the proposed directors of the company.
Apply for Director Identification Number (DIN): through Spice+ form at the time of incorporation or file form DIR 3.
Name Approval Application: reserve your company name using Spice+ Part- A Form or by using RUN Web Service of MCA.
Filling of forms with MCA: submit all details and documents for incorporation via Spice+ Part B (INC -32) along with AGILE- PRO, eAoA (INC -33) , eMoA (INC -34) , URC1, INC-9 (as applicable) and other linked forms.
Certificate of incorporation: on verification, the registrar of companies will issue the certificate of incorporation, PAN, TAN and a CIN (Corporate Identity Number) will be allocated.

FAQs

There is no restriction under the Companies Act, 2013 for foreign nationals becoming shareholders or directors. However, at least one director must be a resident in India, as per Section 149(3).

Yes, under Section 73(2), a private company can accept deposits from its members subject to compliance with prescribed conditions (filing of DPT-3, maintenance of deposit register, etc.).

As per Section 139, audit is mandatory irrespective of turnover or profits. All companies must appoint a statutory auditor and file audited financials.

It may issue debentures to raise funds, but such issuance can't be offered to the public and must comply with the private company restrictions under the Companies Act.

Yes, under the LLP Act, 2008, a private limited company (with no security interest) can apply for conversion into an LLP via Form 18, subject to MCA conditions.

Yes, Section 188 of the Companies Act, 2013 regarding related party transactions applies to all companies, including One Person Companies (OPCs). OPCs must obtain board approval before entering into any specified related party transactions and ensure proper disclosure in the board’s report.

Non-filing of annual returns or financial statements with the Registrar of Companies invites penalties: fines can be up to Rs.1, 00,000 and Rs.5, 00,000 respectively, along with additional daily fines until the documents are filed.

It can issue preference shares, subject to MOA/AOA provisions and compliance with rules regarding tenure, redemption, and rights.

Form PAS-3 must be filed with the Registrar within 30 days of allotment of shares to maintain transparency and statutory compliance.

Any foreign direct investment (FDI) is subject to FEMA, RBI regulations, and sectoral caps. Reporting under Form FC-GPR (within 30 days of allotment) is mandatory.