Private Limited Company: Definition & Documents Required for Registration


What is a Private Limited Company?

A Company is an association of persons who share shared objectives. Additionally, the proprietors of the company pool their assets to achieve their shared objectives. A private limited company is a firmly held company with limitations to issue shares to general society. Hence that it cannot go for an Initial public offering or list its shares on the stock exchange for public trading of their shares.


Registration of a Pvt Ltd Company in India is regulated by the Companies Act, 2013, and administered by the Ministry of Corporate Affairs.


Definition and Conditions as per Companies Act, 2013


Private Limited Company has a base paid-up share capital of Rs. 100 thousand or such higher capital as may be recommended under area 2 (68) of Companies Act, 2013; and by its Articles,-


1) limits the right of transfer of its share;


2) with the exception of One Person Company, restricts the quantity of its individuals to 200 excluding:


a) persons who are workers of the company; and


b) persons, who have previously been in the work of the company, were individuals from the company and have kept on being individuals after the business ceased


3) restricts any invitation to general society to buy in for any protections of the company.


A Private company turns into a "small company" in the accompanying circumstances:


paid-up share capital not surpassing fifty lakh rupees or a such higher amount as may be endorsed (not be in excess of five crore rupees);

Turnover as per the last benefit and misfortune account doesn't surpass two crore rupees or such higher amount not being in excess of twenty crore rupees.

Note: Nothing, unless there are other options, is applied to a holding or subsidiary company.


A Private Company turns into a "small company" on the off chance that the paid-up share capital doesn't surpass fifty lakh rupees and its average annual turnover during the relevant period doesn't surpass two crore rupees.


Incorporation of a Private Limited Company

The main strides of incorporation are discussed beneath:


Application for DIN


There should be at least two Advertisers and at least two Chiefs. Advertisers may be individual or body corporate who will advance/incorporate a company and Chiefs ought to be individuals. The individuals need to apply for DIN for example Chief Identification Number in Form DIN 1 along with the recommended reports.


To find out about DIN read: Methodology to Obtain DIN/How to apply for DIN


Digital Signature


Digital Signature is an unquestionable necessity for any of the two Chiefs. There are a total of seven Certification Agencies authorized by the Regulator of Certification Agencies to issue the Digital Signature Certificate.


To know more read: Prerequisite of a Digital Signature in a company

The subsequent stage includes an application to the concerned Registrar of Companies (ROC) along with the endorsed records and expenses. The advertiser can apply for six company names amongst which the ROC will approve only one. Assuming the ROC dismisses all the names, the applicant has another two chances to apply the name again with the same charges he has brought about.


MoA and AoA


After the name approval, the drafting of Memorandum of Association and Article of Association are drafted by the Chiefs/Advertisers.


To know more read: MOA and AOA, its importance for the company and its individuals.


Company Incorporation


After the drafting of the MoA and AoA, the Chief will take the Professional Assistance for example from CA/CS/CWA to incorporate the company. E Forms 1, 18, and 32 are to be recorded, Digitally endorsed by any One Chief followed by Digital Signatures of Professional who confirms that all the reports and information is the right one. A certificate of Incorporation will be generated, when the ROC approves the archives and Forms submitted.


The Chiefs are to get the MOA and AOA printed and to consent to all the compliance after the company registration


Documents Required for Private Limited Company Registration

Following are the documents that are generally required for Private Limited Company Registration

Copy of PAN Card of directors

Passport size photograph of directors

Copy of Aadhaar Card/ Voter identity card of directors

Copy of Rent agreement (If rented property)

Electricity/ Water bill (Business Place)

Copy of Property papers(If owned property)

Landlord NOC (Format will be provided)

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