Information

Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company registration is governed by the Companies Act, 2013 and the Companies (Incorporation) Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required. A natural person can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.

Unique features of a private limited company like limited liability protection to shareholders, ability to raise equity funds, separate legal entity status and perpetual existence makes it the most recommended type of business entity for millions of small and medium sized businesses that are family owned or professionally managed.

Features of Private Limited Company :-

  1. It can be formed with minimum two Director & two members (max member shall not exceed 200).
  2. Easily Setup and recommended to Growing Startups & unregistered business entities
  3. Limited Liability for Members.
  4. Easy fund raising from Investors.
  5. Easy Exit Plan

Documents / Information :-

  1. Minimum 2 Directors and 2 Subscribers
  2. Documents/ Information of Directors and Subscribers
    • DSC
    • PAN (Self Attested Copy)
    • AADHAAR (Self Attested Copy)
    • Email ID
    • Phone No
    • Qualification
    • Occupation
    • Residential Status
    • Nationality
    • Place of Birth
    • Contribution
    • Interest in other entity if any
  3. Documents / Information of Company
    • 6 Proposed Names(Maximum)
    • Registered Address
    • Capital Structure
    • Main Object
    • Proof of Registered Office
      • Utility Bill
      • If Owned - No-Objection Certificate from the Landlord
      • If Rented - Rental Agreement Copy between the Company and the Landlord

Process :-

  1. DSC procurement
  2. DIN application
  3. Company Document / Information collection
  4. Name application
  5. Preparation of MOA And AOA
  6. Submission of Incorporation & other Forms
  7. Certificate of Incorporation
  8. PAN & TAN Allotment

FAQ :-

How many shareholders are required to incorporate a private limited company?

A minimum of two shareholders and a maximum of up to 200 shareholders are allowed in a private limited company. The shareholders could be natural persons or companies.

How many Directors are required in a private limited company?

A private limited company must have a minimum of two Directors and can have up to a maximum of fifteen Directors.

What are the requirements to be a Director?

The Director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency. Therefore, foreign nationals can be directors in a Indian Private Limited Company. But there should be at least one Director who is am Indian resident.

Can a Foreign National or an NRI hold shares of a Private Limited Company?

Yes, a Foreign National or an NRI or a Foreign Company can hold shares of a Private Limited Company subject to Foreign Direct Investment (FDI) Guidelines.

Can a Foreign Parent Company incorporate a Subsidiary in India?

Yes, foreign parent or holding Companies can incorporate a subsidiary, as a 100% owned Private Limited Company in India subject to Foreign Direct Investment (FDI) Guidelines.

How can a foreign company incorporate a new Company in India?

Any foreign company can establish its place of business in India by filling e-Form FC-1, It is not mandatory for a foreign company to register as a foreign company by taking a Foreign Company Registration Number.
The application shall be supported by an attested copy of approval from the Reserve Bank of India under Foreign Exchange Management Act or Regulations.

What are FDI Guidelines for Foreigners in a Private Limited Company?

100% Foreign Direct Investment is allowed in India in many of the industries.

What are the other registration requirements of a Private Limited Company in India?
  • Register under Shops and Establishment Act
  • Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
  • Register for Professional tax
  • Register with Employees' Provident Fund Organization
  • Register with ESIC (medical insurance)
  • Filing for Government Approval before RBI/FIPB for Foreigners and NRI's
Information

Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company registration is governed by the Companies Act, 2013 and the Companies (Incorporation) Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required. A natural person can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.

Unique features of a private limited company like limited liability protection to shareholders, ability to raise equity funds, separate legal entity status and perpetual existence makes it the most recommended type of business entity for millions of small and medium sized businesses that are family owned or professionally managed.

  1. It can be formed with minimum two Director & two members (max member shall not exceed 200).
  2. Easily Setup and recommended to Growing Startups & unregistered business entities
  3. Limited Liability for Members.
  4. Easy fund raising from Investors.
  5. Easy Exit Plan
  1. Minimum 2 Directors and 2 Subscribers
  2. Documents/ Information of Directors and Subscribers
    • DSC
    • PAN (Self Attested Copy)
    • AADHAAR (Self Attested Copy)
    • Email ID
    • Phone No
    • Qualification
    • Occupation
    • Residential Status
    • Nationality
    • Place of Birth
    • Contribution
    • Interest in other entity if any
  3. Documents / Information of Company
    • 6 Proposed Names(Maximum)
    • Registered Address
    • Capital Structure
    • Main Object
    • Proof of Registered Office
      • Utility Bill
      • If Owned - No-Objection Certificate from the Landlord
      • If Rented - Rental Agreement Copy between the Company and the Landlord
  1. DSC procurement
  2. DIN application
  3. Company Document / Information collection
  4. Name application
  5. Preparation of MOA And AOA
  6. Submission of Incorporation & other Forms
  7. Certificate of Incorporation
  8. PAN & TAN Allotment
How many shareholders are required to incorporate a private limited company?

A minimum of two shareholders and a maximum of up to 200 shareholders are allowed in a private limited company. The shareholders could be natural persons or companies.

How many Directors are required in a private limited company?

A private limited company must have a minimum of two Directors and can have up to a maximum of fifteen Directors.

What are the requirements to be a Director?

The Director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency. Therefore, foreign nationals can be directors in a Indian Private Limited Company. But there should be at least one Director who is am Indian resident.

Can a Foreign National or an NRI hold shares of a Private Limited Company?

Yes, a Foreign National or an NRI or a Foreign Company can hold shares of a Private Limited Company subject to Foreign Direct Investment (FDI) Guidelines.

Can a Foreign Parent Company incorporate a Subsidiary in India?

Yes, foreign parent or holding Companies can incorporate a subsidiary, as a 100% owned Private Limited Company in India subject to Foreign Direct Investment (FDI) Guidelines.

How can a foreign company incorporate a new Company in India?

Any foreign company can establish its place of business in India by filling e-Form FC-1, It is not mandatory for a foreign company to register as a foreign company by taking a Foreign Company Registration Number.
The application shall be supported by an attested copy of approval from the Reserve Bank of India under Foreign Exchange Management Act or Regulations.

What are FDI Guidelines for Foreigners in a Private Limited Company?

100% Foreign Direct Investment is allowed in India in many of the industries.

What are the other registration requirements of a Private Limited Company in India?
  • Register under Shops and Establishment Act
  • Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
  • Register for Professional tax
  • Register with Employees' Provident Fund Organization
  • Register with ESIC (medical insurance)
  • Filing for Government Approval before RBI/FIPB for Foreigners and NRI's