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In India, there are a number of ways in which you can start a Business in India. These include, set up or incorporation of the following types of entities:

  • Partnership
  • One Person Company/ Sole proprietorship
  • Private Limited Company
  • Public Limited Company
  • Unlimited Company
  • Limited Liability Partnership (LLP)
  • Cooperatives
  • Trust
  • Societies

Of the abovementioned, for incorporation of a company, Pvt Ltd Company Registration in India is the most popular and done with ease. The step by step process involved in Pvt Ltd Company Registration has been made less cumbersome and the documentation needed has been minimised. Thus, emphasising on the need for having clear and well drafted documentation and experienced filing for a Private Limited Company registration.

What is needed for Registering a Private Limited Company in India:

Paid up Capital – Minimum of INR 1,00,000/- (Indian Rupees One Lakh) as Paid up Capital for the Pvt Ltd Company;

Members and Directors – For registering a private limited company, a minimum of 2 members/ shareholders and a maximum of 200 members/ shareholders are needed. There will be a minimum of 2 directors and maximum of 15 directors.

Registered Office – When registering a private limited company, an address/ location of place of business, is required to be filed, which for all future purpose will be known as the registered office of the company. This is also where all official correspondence from the Ministry of Corporate Affairs will be sent. There are a number of options available now for a company from buying a property, renting a space, using a co-working spaces address (after executing the requisite documents) or even using your lawyers address (after acquiring the requisite permissions). A virtual office space is another option that a lot of entrepreneurs and companies are favouring due to the ease of doing business and correspondence. A temporary office address can be provided to while filing for incorporation, however, within 15 days of incorporation of the company, an official registered office address must be provided.

Change in the Registered Office – The registered office can be changed within the local limits of any city, town or village where such office is situated by just providing a notice within 30 days after the date of the change.

Suitable Name – There are a few naming guidelines laid down as per law that are required to be followed while registering a private limited company in India. For a name to be approved for the incorporation of a new company, it must be both unique and desirable. A must is a search on the MCA website and a trademark for similar names before and making sure that the proposed name is unique before applying. No less than six different names in order of preference have to be provided while applying for registration of private limited company and the names should be indicative of the main objects of the company.

DIN and DSC – Due to the numerous forms to be filled it is mandatory to get a DIN (Director Identification Number) and DSC (Digital Signature Certificate)

Documents to be Drafted

  • Memorandum of Associate (MOA) – This is the base document which lays down the constitution/ foundation of the company. The purpose of the MOA is to display the permitted range of activities of a company for the guidance of shareholders, creditors and others. When incorporating or registering a private limited company, proper advice must be taken to draft a proper Memorandum of Association to safeguard yourself and the business in the long term.
  • Articles of Association (AoA) – This document regulates the domestic management of a private limited company and creates certain rights and obligations between the members and the company. The Articles of Association are in fact the by-laws of the company according to which directors and other officers are required to perform their function as regard the management of the company, its accounts and audit.
  • Forms – Various forms need to be filled carefully and submitted to the Registrar of Companies (RoC)

Time Frame to Register Pvt Ltd Company

Depending on the citizenship of the members/ directors, 2 – 6 weeks.


  • Separate Legal Identity
  • Limited Liability
  • Continuality of Existence
  • Greater scope of Funding and Expansion
  • Tax Benefits
  • Flexible Designations within the Company

Foreigner in a Pvt Ltd Company

A foreigner can act as a Director of an Indian company, there will be addition paperwork that will need to be submitted such as passport, identity and address proof attested by Indian consulate of the home country of the foreigner, application forms for digital signatures, etc.

India has several policies in place to encourage Foreign Direct Investment (FDI) and if a particular sector permits 100% FDI, an Indian shareholder is not needed. There is however, a requirement to have an “India resident” director in all companies under the new Indian Companies Act. This person does not have to be an Indian national, but must be someone who has been a tax resident in India for the previous year.