Asktrix

How to Register a Private Limited Company in India with Asktrix?

A Private Limited Company is one of the most popular business structures in India, offering limited liability protection, separate legal entity status, and easier access to funding. At Asktrix, we provide comprehensive private limited company registration services with expert guidance throughout the entire process.

Who needs Private Limited Company?

Private Limited Companies are ideal for businesses that want to scale, attract investors, or require limited liability protection. This structure is perfect for startups, growing businesses, and companies planning to raise capital through equity investments.

Why Choose Asktrix for Private Limited Company Registration?

With years of experience in company incorporation, Asktrix offers end-to-end support for private limited company registration. Our team of experts ensures compliance with all legal requirements while providing personalized guidance tailored to your business needs.

Key Features of a Private Limited Company

  • Limited Liability: Shareholders' liability is limited to their shareholding
  • Separate Legal Entity: Company has its own legal identity distinct from its members
  • Perpetual Succession: Company continues to exist regardless of changes in membership
  • Restrictions on Share Transfers: Shares cannot be freely transferred without board approval

Types of Private Limited Companies

  • Company Limited by Shares: Most common type where liability is limited to unpaid share capital
  • Company Limited by Guarantee: Members' liability is limited to the amount they guarantee to contribute
  • Unlimited Company: Members have unlimited liability (rarely used)

Documents Required for Private Limited Company Registration

The following documents are essential for private limited company registration:

  • General Requirements: PAN card, Aadhaar card, and passport-sized photographs of all directors
  • Director's Identification Number (DIN): Unique identification number for each director
  • Address Proofs: Utility bills, bank statements, or rental agreements for registered office
  • Registered Office Proof: NOC from property owner and utility bills
  • Digital Signature Certificate (DSC): Required for online filing of documents

Eligibility Criteria

To register a private limited company, the following criteria must be met:

  • Directors: Minimum 2 directors, maximum 15 directors (at least one must be Indian resident)
  • Shareholders: Minimum 2 shareholders, maximum 200 shareholders
  • Capital Requirement: No minimum capital requirement (can start with ₹1)
  • Registered Office: Must have a registered office address in India

Step-by-Step Registration Process with Asktrix

Our streamlined process ensures quick and hassle-free company registration:

1

Digital Signature Certificate (DSC)

Obtain DSC for all directors to enable online document signing and filing.

2

Director Identification Number (DIN)

Apply for DIN for all directors through Form DIR-3.

3

Name Reservation

Submit company name for approval through RUN (Reserve Unique Name) service.

4

File Incorporation Form

Submit SPICe+ form with all required documents and information.

5

Certificate of Incorporation

Receive Certificate of Incorporation and commence business operations.

Rules and Regulations for Private Limited Companies

Private limited companies must comply with various regulations under the Companies Act, 2013:

  • Compliance with Companies Act, 2013 and related rules
  • Maintenance of Articles of Association (AoA) and Memorandum of Association (MoA)
  • Restrictions on public offering of shares
  • Board approval required for share transfers

Compliance Requirements After Registration

Post-registration, private limited companies must fulfill various compliance obligations:

  • Auditor: Appointment of statutory auditor within 30 days
  • Annual Financial Statements: Preparation and filing of financial statements
  • Board Meetings and Annual General Meetings (AGM): Regular board meetings and annual AGM
  • Statutory Audit: Annual statutory audit of financial statements
  • Maintenance of statutory registers and records: Proper maintenance of company records

Benefits and Government Schemes For Private Limited Companies

  • Limited Liability Protection: Personal assets of shareholders are protected
  • Access to Government Schemes: Eligibility for various government incentives and schemes
  • Investor Appeal: Preferred structure for investors and venture capitalists
FAQ

Frequently Asked Questions

Find answers to common questions about private limited company registration in India.

What is the minimum number of directors needed?

A private limited company requires a minimum of 2 directors and can have a maximum of 15 directors. At least one director must be a resident of India.

Can foreign nationals or NRIs be directors?

Yes, foreign nationals and NRIs can be directors in a private limited company. However, at least one director must be a resident of India.

Is there a minimum capital requirement?

No, there is no minimum capital requirement for private limited companies. You can start with as little as ₹1.

What taxes are applicable?

Private limited companies are subject to corporate tax, GST (if applicable), TDS, and other statutory taxes based on their business activities.

Can private companies raise investment?

Yes, private limited companies can raise investment from investors, venture capitalists, and other sources, subject to compliance with applicable regulations.

What proof is required for a registered office address?

You need a No Objection Certificate (NOC) from the property owner and utility bills (electricity, water, or gas) as proof of registered office address.

How long does registration take?

With Asktrix, private limited company registration typically takes 7-15 working days, depending on document verification and government processing time.

Is an auditor necessary for compliance?

Yes, every private limited company must appoint a statutory auditor within 30 days of incorporation for annual audit compliance.

How does a private limited company differ from a public one?

Private limited companies cannot offer shares to the public, have restrictions on share transfers, and have a maximum of 200 shareholders, while public companies can offer shares publicly.

What is the validity of a Digital Signature Certificate?

Digital Signature Certificates are typically valid for 1-2 years and need to be renewed before expiry to continue online filing activities.

Starting your private limited company with Asktrix provides not only legal registration but also ongoing support for compliance and growth. Explore a smooth path to business success and secure your company's future with Asktrix's professional guidance and support. For new clients tax saving guidance will come at free of cost. For more details fill the form and get the benefits

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