Private Limited Company


Importance of choosing Private Limited Company:

When you launch a Start-up, Incorporation of company under the right business structure is a significant decision. It is an online method under the initiative of the Ministry of the corporate affairs. In India, it is compulsory for every business to register them as part of the set legal compliance. Choosing the correct company structure for your business is as essential as any other business goings-on.

Do you know how great companies/ unicorns like Flipkart, Oyo, Paytm, Ola are registered?

These are all Private Limited Companies. Following factors help you to choose right business structure:

1) Scalability : 

        Scalability is easier as it is easy to raise capital from investors, venture capitalists, angel investors, financial institutions. It offers more transparency in the company.

2) Compliances : 

        Consider that each business structure has diverse levels of compliances that need to be fulfilled. For instance, a company has to file an income tax return besides an annual return with the registrar of companies. It is mandatory that a company’s books of accounts should be audited every year. Following these legal compliances necessitate auditors, accountants and tax filing experts. As a result, it is imperative to pick the right business structure when planning for company registration.

3) Funding : 

        As mentioned above, it is easy to raise for Private Limited Companies from multiple financial stakeholders. It is easy to issue shares to investors. Investors prefer to invest in Private limited company as LLP will require them to become partners in the business and OPC have only one director.Debt Financing is also relatively easy owing to the business structure.

4) Listing on stock exchange :

         If you desire to issue IPO in the future course of business; it is easy to take your company public in case of private limited companies

Valuation : 

      Valuation is a very important consideration that affects your business at different points of time. It is a validation in the eyes of the stakeholders associated with the company. Therefore, it is important to register in a valuation friendly structure.



Company incorporation procedure

Starters’ CFO make your process of company formation very simple.

  • Obtaining Digital Signature Certificate (DSC) - 1 Day
  • Director Identification Number - 1 Day
  • Application for company Name - 3 Days
  • Preparing MOA & AOA - 1 day 
  • Applying for Certificate of Incorporation - 5-7 day
  • Getting PAN and TAN
  • Opening Bank account

Your company is ready in 10 to 15 days subject to Government approvals.


Incorporation documents

1) Identity Proof : 

        Scanned copy of PAN Card or Passport for Foreign Nationals & NRIs.

2) Address proof : 

        Scanned copy of Voter’s ID/Passport/Driver’s License

3) Current address proof : 

        Scanned copy of Latest Bank Statement/ latest utility bill in name of directors and shareholders.

4) Registered office proof : 

      The Company should have a registered office in India. An up to date copy of the property tax receipt, electricity bill or water bill should be submitted. Scanned copy of No-objection Certificate from property owner is also required.


What we do?

Company Incorporation package includes:

  • DSC and DIN for 2 Directors.
  • Company Name Reservation.
  • MOA & AOA.
  • Corporate Identification Number (CIN).
  • PAN & TAN.
  • Free Call/ meeting with CA about the Compliance requirement and advisory services.
  • Complimentary Legal Agreements (Total – 10).

Still confused how to handle company formation? Don’t panic! Let our legal and finance experts handle the foundation on which your organization can stand. Reach us for a free consultation!

FAQs :

1. Is there any qualification to become a director or shareholder in a Private Limited Companies?

Any individual can become a shareholder in a private limited company. For becoming a director in a company, no professional or educational qualification is required.

2. How to register private limited company?

Private limited company can be registered in below mentioned steps:-

Obtaining DSC and DIN

Name approval

Company registration

3. What is the maximum number of shareholders in Private limited company?

Maximum number of shareholders in a private limited company.

4. How long does the registration of a private limited company take?

Registration of a private limited company can take 15-20 days, subject to the processing time of Registrar of Companies.

5. What documents are required for private limited company registration in India?

All proposed directors should provide identity proof (like Aadhar/ Passport/DL/any government issued ID, utility bills as address proof, a copy, PAN card and passport.

6. Is a private limited company suitable for making FDI in India?

Yes, the private limited companies is a popular form of business entity among foreign investors for making the direct foreign investment in any country, by means of a wholly owned subsidiary, a joint venture etc.

7. What is the minimum capital required to set up a private limited companies?

There is no requirement of minimum paid up share capital for private limited companies.

Compare your alternatives

Below is the comparison between Sole proprietorship, Partnership, Private Limited Company, Limited liability partnership, One person company and Public limited company