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Private Limited Incorporation

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Get started at just ₹ 6,999/-*

Incorporate your Private Limited Company in just 48 working hours

Simplify your Indian Company set-up process with expert assistance all in one-go including PAN and TAN

Documents Required:
Directors and Shareholders’ documents

PAN Card

Aadhar Card

Passport Size Photograph

Passport (in case of Foreign National)

Registered Office Address Proof

Utility Bills

In case of rented property – Rent Agreement

Incorporate your Company today

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Steps For Private Limited Company Incorporation

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Choose The Right Package

Select the State in which you wish to form your Entity

Basic

Starter Package

₹ 9349/-

(All inclusive)
No Cost EMI, Transparent pricing
Professional Fees ₹ 6999/-
Government Fees ₹ 2350/-
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Includes:
  • Checking Name Availability for your Private Limited;
  • Name Approval (RUN FORM)
  • DIN application for 2 Directors;
  • Digital Signature (2 Years Validity) for 2 Directors;
  • Memorandum of Association;
  • Article of Association;
  • Incorporation Form and Documents;
  • Certificate of Incorporation;
  • PAN Application;
  • TAN Application;

Note: Government fees are calculated for only for Incorporation at a Basic Capital of INR 1 Lakh
Most Popular

Growth Package

₹ 14349/-

(All inclusive)
No Cost EMI, Transparent pricing
Professional Fees ₹ 11999/-
Government Fees ₹ 2350/-
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Includes:
  • Starter Package +
  • GST licence (Complimentary);
  • MSME licence (Complimentary);
  • First Board Meeting Documents;
  • Issuance of Share Certificates and Stampduty assistance;
  • Auditor Appointment Assistance;
  • Obtaining Certificate of Commencement of Business;
  • Providing Board Resoultion for Opening of Bank Account

Note: Government fees are calculated for only for Incorporation at a Basic Capital of INR 1 Lakh
Best Value

One Stop Package

₹ 27349/-

(All inclusive)
No Cost EMI, Transparent pricing
Professional Fees ₹ 24999/-
Government Fees ₹ 2350/-
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Includes:
  • Growth Package +
  • Trademark Application (Complimentary);
  • Board Meeting Documents for one Financial Year;
  • General Meeting Documents for one Financial Year;
  • Annual Filing (AOC-4 and MGT-7);
  • Income Tax Return Filing;
  • DIR-3 KYC for 2 Directors

Note: Government fees are calculated for only for Incorporation at a Basic Capital of INR 1 Lakh
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Private Limited Company Incorporation Steps

Step 1 : Get DSC/ Digital Signature Certificate Apply for DSC/ Digital Signature Certificate at the Controller of Certification Agencies (CCA) portal by uploading passport photos, PAN, Aadhaar Card No, phone no, and email id. If applicable the foreigners should also submit the legalised documents either through notary public and apostille.

Step 2 : Apply for a Director Identification Number (DIN) An essential requirement within the formation process is the Director Identification Number abbreviated as (DIN) and must be filled in the incorporation form.

Step 3 : Apply for a Unique Company Name (SPICe+ Part A) Filling up the SPICe+ Part A form, the name of the company can be reserved by selecting the type, class, category, and sub-category and by giving detailed business description. Two names should be proposed to be approved in order to avoid duplication of names by other stakeholders.

Step 4 : File SPICe+ Part B Business detailing company’s capital, registered office address, subscribers, Directors, stamp duty paid, PAN and TAN compliance. Make sure all documents to support it are included so as to have a complete submission.

Step 5 : SPICe+ Incorporation Forms with Memorandum of Association (MOA) and Articles of Association (AOA) and spruce up all important company information. It is required that before submitting the documents to the Ministry of Corporate Affairs, the subscribers and other professionals involved in the company formation process are to provide their digital signatures.

Step 6 : Subject to the verification of the above facts, the following among others shall be issued to the Company: the Ministry of Corporate Affairs (MCA) shall incorporate the company with the following ; Certificate of Incorporation with Company Identification Number (CIN), Permanent Account Number (PAN), and Tax Account Number (TAN).

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Advantages of Private Limited Company

Limited exposure of shareholders' property

The liability of the members is limited which means, in case of financial crisis in the Company, the properties of the shareholder will be protected.

Legal Recognition

A Private Limited Company has a separate legal status from its members. This means that the Private Limited Company also has the duty of managing the debts and the creditors apart from managing the assets and liabilities.

Reliability

The Ministry of Corporate Affairs (MCA) requires the Companies to report its annual financial statements, Board’s Report, Directors’ details and KYC, Registered Office details etc. as a matter of compliance as enlisted under the Companies Act, 2013, on its portal. Such filings are available for public inspection, which enhances the transparency of such Private Limited Companies. As such, there is the understanding that the private limited company is a more trusted form of corporate structure.

Legal Personality

A business entity enjoys perpetual existence, meaning that the entity will carry on its operations up to the time when it closes down. In the same procedure, a company is accepted as an organisation that is known to have a juridical personality of its own. Consequently, a company can carry on its existence even after changes have occurred in the composition of those who belong to the association and without the death or dissolution of any of the members.

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Characteristics/Features of Private Limited Company

Membership Structure

The requirement is that the applicant must have at least two shareholders. However, there is a ceiling of maximum 200 members in a Private Limited Company.Furthermore, to operate the company’s business, you will require two directors.

Limited Liability Protection

Yet another characteristic of the private limited company is that it is incorporated with limited liability features. This point means that in a case of losses or debts, the risk that an individual member or a shareholder will be held liable for is limited to their share in the Private Limited Company.

Separate Legal Entity

A Private Limited Company being a separate legal persona has the advantage of perpetual business existence. This means that even if all the members are no longer associated with the Private Limited Company due to transfer of ownership or death the Company survives under the eyes of the law. The Company’s life in its operation is not in any way impacted on by the lives of the shareholders or members unless the company is dissolved through a formal resolution.

Required Capital to be Paid up

The minimum paid up capital requirement that is required in order to run a private limited company is Rs. 1,00,000/- or such amount as prescribed by the Ministry of Corporate Affairs. Another legal requirement is that your Company has adequate capital, which means it’s financially sound to run the business.

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List of Documents Required for Private Limited Company

The following are the list of documents which are mandatorily required for incorporation of a Private Limited Company:

A. Registered Office Address Proof

1. If Property Owned:

  • Maintenance Bill OR Property Tax Bill – Not older than 2 Months
  • Electricity Bill OR Telephone Bill – Not Older than 2 Months

2. If Property Rented:

  • Lease / Rent Agreement
  • Electricity Bill OR Telephone Bill – Not Older than 2 Months
B. Director & Shareholder Documents

1. Indian National – All documents to be self-attested

  • PAN Copy
  • Aadhar Copy
  • Bank Statement for Address Proof not older than 2 months
  • Passport Size Photograph

2. Non Resident Indian (NRI)

  • PAN Copy – Self Attested
  • Aadhar Copy, if available – Self Attested
  • Passport Copy – Self Attested
  • Visa Copy or OCI Card Copy – Self Attested
  • Bank Statement or Electricity Bill for Address Proof – Apostilled
  • Passport Size Photograph

3. Foreign National

  • Passport Copy - Apostilled
  • Bank Statement or Electricity Bill for Address Proof – Apostilled
  • Passport Size Photograph

Tax Benefits of Operating a Private Limited Company in India

1. Limited Liability, Unlimited Tax Benefits

  • A huge strength of a Company is that it provides its shareholders with limited liability. This means that whatever an individual or shareholder may own cannot be taken to pay for any outstanding debts in that company. But how does this link up to tax advantages?
  • The Company is a legal personality, and more specifically, carrying on a private limited business is the operation of a separate legal personality. Your income and assets are different from that of the Company, so your wealth is thereby protected from the company’s taxes such as property taxes. At the same time, the owner’s assets bear the risk related to business debts and taxes in a sole proprietorship or partnership.

2. Lower Tax Rates

  • The tax laws applicable to private limited companies in India are enjoyable, one more factor to consider. Another incentive that Private Limited Companies enjoy are that the corporate new tax regime rates are lower than those of an individual.
  • Any Private Limited Company which has an annual income of up to Rs 250 crore is within the bracket to attract a corporate tax rate of 25%. There are as high as 30 percent for earners of a given threshold on the personal income tax. Further, the private limited companies do not have to pay dividend distribution tax (DDT) consequently, the shareholders of the Private Company do not pay taxes on receipt of the dividend that the Company pays them. Rather, it is liable to tax at personal level depending on the relevant tax bands.

3. Deductions and Exemptions

  • The tax laws applicable to private limited companies in India are enjoyable, one more factor to consider. Another incentive that Private Limited Companies enjoy are that the corporate new tax regime rates are lower than those of an individual.
  • Any Private Limited Company which has an annual income of up to Rs 250 crore is within the bracket to attract a corporate tax rate of 25%. There are as high as 30 percent for earners of a given threshold on the personal income tax. Further, the private limited companies do not have to pay dividend distribution tax (DDT) consequently, the shareholders of the Private Company do not pay taxes on receipt of the dividend that the Company pays them. Rather, it is liable to tax at personal level depending on the relevant tax bands.

4. Perpetual Existence

Export taxes are one source of income for companies in India, Further, Private Limited Companies in India are entitled to several tax incentives and other benefits that could minimize their tax responsibities. The main deductions and exemptions that fall under it are:

  • Start-up Deductions: In order to enhance the innovation and entrepreneurship of the start up business organization, the Indian government has offered different types of tax incentives and tax exemptions for a limited period to those business organizations which are incorporated as a Private Limited Company.
  • Research and Development (R&D) Deductions: Any Private Limited Company that incurred expenditure on eligible R & D activities can claim deductions under Section 35 of the Income Tax Act.
  • Export Promotion: The export capability may provide tax advantage to the firms including those assigned under section 10AA of the Income Tax Act.
  • Investment-Related Deductions: Tax exemptions can be claimed by Private Limited Companies that have made investments on specified assets or sectors under Section 32 of the Income Tax Act.

These deductions and exemptions are useful in decreasing the tax obligation of the private limited companies hence making the business entity attractive among the business communities in India.

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Incorporating a Private Limited Company

In order to set-up a Private Limited Company one has to comply with certain statutory requisites. Here are the key conditions to meet:

Members and Directors : A private limited company should consist of at least two members, but the limit of the members is 200. Additionally, the Directors must meet the following conditions:

  • Hitherto, a person has to obtain the Director Identification Number (DIN) from the Ministry of Corporate Affairs in order to become a Director.
  • Currently, the Indian company must have at least one Resident Director, who has spent more than 182 days in India within the previous calendar year.

Choosing a Company Name : A private limited company must ensure its name includes three essential elements:

  • Main name
  • Activity to be carried out
  • At the end of the company name the word used is ‘Private Limited Company’.

Registered Office Address : On incorporation, the company has to file the particulars of its permanent registered address with the ROC. This is the company’s principal place where all the main affairs are solved and all the documents are kept.

Obtaining Essential Documents : While submitting the electronic document, every company needs to get a Digital Signature Certificate for document verification. Furthermore, if employees are involved in various activities including professionals such as secretaries, chartered accountants, or cost accountants certification from the professionals is required.

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What are the annual compliances of a Private Limited Company?

1. Annual compliances:

  • Annual General Meeting (AGM)
  • Filing of Annual Financial Statements
  • Filing of Annual Returns
  • Board Meetings
  • Director KYC
  • Return of Deposits
  • Appointment and Reappointment of Auditors
  • Statutory Registers and Records

2. Event-driven Compliances:

  • Increase in authorised share capital of the Company;
  • Allotment of shares by way of rights issue, preferential allotment or private placement;
  • Changes in Directors either by way of appointment, resignation, removal of disqualification;
  • Change in designation of a director;
  • Change in registered office of a company, from - within the city limits to from one State to another
  • Availing loan facility etc.

3. Consequences of Non-Compliance:

  • There are penalties and fines prescribed for failing to meet secretarial compliance.
  • It also affects the reputation as well as the legal ramifications to the company.

Requirements for Incorporating a Company

Directors and Members : In accordance with the Companies Act of 2013 of India, a private limited company must be incorporated with a minimum of two directors and 200 members.The Director Identification Number, which can be obtained from the Ministry of Corporate Affairs (MCA), is a necessary requirement for eligibility. Additionally, each firm must have at least one resident Indian director who should have spent at least 182 days in India during the year of establishment.

  • The Directors of the Private Limited Company are required to have a Director Identification Number (DIN) for which an application is to be made by filing necessary documents with the Ministry of Corporate Affairs (MCA) In the same way, every Company needs to have at least one resident director who should have lived in India for not less than 182 days in the year the Company was incorporated.

Name of Company: Selecting a Private Limited Company’s name can be tricky and a technical task. While choosing a name during incorporation, the following essential things are to be ensured:

  • Main Name
  • Activity proposed be carried out by such Company
  • Suffix - ‘Private Limited Company’
  • Proposed names should not be closely resembling to any existing company names

Registered Office Address: The Company also needs to provide a permanent office address where it will be carrying out its main business activities, at the time of incorporation. This office address also implies the place where the Private Limited Company shall maintain all its statutory records.

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What Are the Incorporation Costs for a Private Limited Company?

Particulars Amount (in ₹)
Name Reservation ₹ 1,000
DIN Application Fee ₹ 500 per DIN
DSC Fee ₹1,500 per DSC
Memorandum of Association Fee ₹ 200 per lakh of authorized share capital or part thereof
Articles of Association Fee ₹ 300 per lakh of authorized share capital or part thereof
PAN Application Fee ₹ 66
TAN Application Fee ₹ 65
Stamp Duty Varies from state to state
Professional Tax Registration Fee Varies from state to state
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Why Choose Instabiz Filings for Private Limited Company Incorporation

Expertise and Experience

InstabizFilings is also manned by a team of qualified professionals that possess deep knowledge in Private Limited Company Incorporation. We have the experience of law and taxation in India so we provide a hassle free and efficient process of formation.

Seamless Process

Easy workers sign up by simplifying the formation process hence shortening the duration it would have otherwise taken.

Customized Solutions

Our services will suit your business needs because we offer them customized based on your needs. We provide specific services that help to ensure your Private Limited Company is incorporated in the best way possible of claiming back tax

Compliance Assurance

It is very essential for the sustainability of a Private Limited Company to ensure that it fully complies with the legal laws of the Government. InstabizFilings offers a continuing compliance service so you can fulfill all the legal obligations in a company.

Transparent Pricing

Our fees are fairly calculated, reasonable, and not accompanied by hidden charges.

FAQs

FAQs

A private limited company is distinguished by its separate legal identity from its shareholders and directors, thereby limiting their liability to the value of the shares they own. An example of a private limited company is Google India Pvt. Ltd., which is a subsidiary of Google LLC.

Yes, a Limited Liability Partnership an (LLP ) can be converted to a Private Limited Company in India. The process involves filing an application with the Registrar of Companies (ROC) and obtaining the necessary approvals.

The basic compliances applicable to a Private Limited Company in India are as follows:

  • 1. Minimum share capital of ₹1 lakh.
  • 2. At least 2 directors
  • 3. DIN and DSC for directors.
  • 4. Registered office in India
  • 5. MoA and AoA
  • 6. PAN and TAN
  • 7. GST registration (if turnover exceeds ₹40 lakh)
  • 8. Annual compliance with ROC
  • 9. Auditor appointment
  • 10. Board meetings and AGM
  • 11. Maintenance of statutory registers
  • 12. Compliance with labour laws

The different types of business entities in India include:

  • 1. Private Limited Company (Pvt Ltd): For small businesses with limited liability.
  • 2. One Person Company (OPC): For solo entrepreneurs with limited liability.
  • 3. Limited Liability Partnership (LLP): For partnerships with limited liability.
  • 4. Public Limited Company (Ltd): For large businesses with public shareholding.
  • 5. Section 8 Company (Non-Profit Organization): For charitable or social purposes.
  • 6. Nidhi Company: For borrowing and lending money among members.
  • 7. Producer Company: For farmers or producers of goods.
  • 8. Government Company: For government-backed projects.
  • 9. Foreign Company: For foreign companies operating in India.
  • 10. Joint Venture Company: For collaborations between two or more companies.

It should have a minimum of 2 Directors and 2 Members , The company members should hold an annual general meeting , The maximum number of Members cannot exceed 200.

There is no minimum turnover prerequisite for a Pvt Ltd company in India. However, certain threshold limits under the Companies Act 2013 trigger different compliances for Pvt Ltd companies, such as certification of annual return, corporate social responsibility, internal audit, appointment of auditor, etc. These threshold limits are based on the paid-up share capital, turnover, net worth, net profit, loans, borrowings, deposits, etc., of the Pvt Ltd company.

The total cost of incorporating a Private Limited Company in India can range from ₹7,000 to ₹50,000 or more, depending on the authorized capital and other factors.

A Private Limited Company in India requires a minimum of 2 members and a maximum of 200 members.

A Private Limited Company is a type of company that is owned by a small group of shareholders, usually family members or close friends. The liability of shareholders is limited to the amount of shares they hold, and shares cannot be freely transferred. The minimum capital requirement for a Private Limited Company is ₹1 lakh, and it can have a minimum of 2 and a maximum of 200 members.

On the other hand, a Public Limited Company is a type of company that is owned by the general public who can buy and sell shares. The liability of shareholders is also limited, but the company itself is responsible for its debts. Shares of a Public Limited Company if listed on stock exchanges, can be easily bought and sold on stock exchanges, and the minimum capital requirement is ₹5 lakh. There is no limit on the number of members in a Public Limited Company, and it can be listed on a stock exchange.

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Disclaimer

Instabizfilings.com is a brand name registered under Adih Biztech Private Limited, a company registered with the Ministry of Corporate Affairs ('MCA') under the CIN - U74999MH2017PTC294482 having it's main object clause as providing online professional solutions and services to assist businesses with their startup process, including documentation and applications for Company registration number, as well as ongoing corporate, secretarial and tax compliance support. Additionally, we offer business and management consultancy services. Please note that while this Company operates with the authorization of the MCA to offer online compliance services, we are private, non-government entity.

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