How to Register a Private Limited Company

How to Register a Private Limited Company

What is a Private Limited Company?

how to register private limited company - What is a Private Limited Company

The most popular type of entity which is aptly suitable for small businesses. 

A private Limited Company is an independent legal entity administered and governed under the Indian Companies Act, 2013 under the Ministry of Corporate Affairs. 

In this type of entity,  the liability of the shareholder is limited by its shares or guarantee. 

It is a privately held company and its name ends with “private limited” which adds credibility to your firm.

Procedure to register a Private Limited Company:

procedure for registration of private limited company

Step 1: Name Approval

You can choose a Unique Name for your company that is proposed to be formed. The proposed name should be in accordance with the regulations of the Companies Act and Rules. The name of a Private Limited Company should be in the form mentioned below:


A company name should have three parts. The first part must be a uniquely Coined term. The second part should describe the business activity of the company and the third part should end up with its type of entity. 




First part: ‘Sidco’, a unique Prefix



Second Part: ‘Chemicals’, this is a company that manufactures certain raw acids and chemicals, hence the middle name can be chemical/formulation/acids etc.



Third Part:  The name should end with the entity type ir ‘Pvt Ltd’, 


“Sidco Chemicals Private Limited”


Form INC 1 is the appropriate form for applying for a company name



Step 2: Digital Signature

A digital signature is a form of electronic fingerprint which is used to sign any online documents electronically. Mostly used in business for the purpose of filing ROC compliances and GST returns. 


Every shareholder in a company obtains a Digital Signature for filing the registration documents before the Registrar of Companies. The specific form of Digital signature suitable for Company Registration is a Class 3 digital signature. 



Step 3: Director Identification Number 

Director Identification Number is shortly known as DIN or DIN number, to be obtained by all the directors of a Company. As per section 153 of the Indian Companies Act, every individual who wants to be a director in a company needs to obtain the Director Identification Number (DIN). 

Director Identification Number or DIN is an 8-digit unique identification number which is allotted to every director by the Central Government.



Step 4: MOA and AOA

A Memorandum of Association is one of the important documents for forming a limited company and it describes the ‘objects’ on which the company is to be formed. It identifies the scope of its operation and determines the boundaries that the company cannot cross.


Article of Association is a document that defines the Rules and Regulations of the operation of a Company. AoA is like the constitution of a company. It describes the rules and regulations governing the internal affairs of a company.



Step 5: Submission of documents 

The list of documents that are required for filing a Private Limited Company Registration are:


  • For Shareholders: 
  • Aadhar Card 
  • PAN card
  • Residential proof
  • Passport size photo
  • Address proof for Office Premises:
  • Rental agreement or lease agreement 
  • Property tax receipt
    • Utility bill
  • No Objection Document (NOC) 

Step 6: Certificate of Incorporation 

Once the Company Registration process is completed, the Registrar of Companies will issue a certificate of incorporation and it will be sent to the registered email id. 

A certificate of incorporation is a legal document that shows, the company has been incorporated by the ROC. In short, it is the company’s birth certificate.



Obtain PAN Card and TAN


The full form of PAN is the Permanent Account Number and it is the tax identification of the firm that tracks the transactions of the company, which is monitored by the Income Tax Department.


Tax Deduction Account Number is a full form of TAN, also issued by the Income Tax Department. It is a ten-digit alphanumeric number which is obtained from the official website of NSDL.


Advantages of Private Limited Company:

Advantages of Private Limited Company
  • Build credibility 

Basically in India, the name Private Limited adds more credibility to your company. A good example of this statement is “TATA Electronics Pvt. Ltd”. We all know the fame of Tata groups. I hope now you understand the credibility of Private Limited Company.


  • Attract investors

In this twenty-first century, everything is about money, even a good idea or innovative invention needs money to popularise, but the major problem is that people who have an idea do not have enough money.  Every famous and great entrepreneur faces this situation, for example, Steve Jobs, Elon Musk and many others. To overcome this problem, many entrepreneurs are searching for investors. At this time the name Private Limited Company attracts investors to your company. 

  • Eligible for Startup India Scheme

Startup India is a subsidy scheme which is provided by the Government of India to encourage young entrepreneurs and enhance the economic growth of India. To avail of this scheme, you need to register your company as a Private Limited Company or Limited Liability Partnership. 

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