FAQs on Private Limited Company Registration
Starting a Private Limited Company is a big milestone for any entrepreneur. With the right guidance,
the process can be smooth and straightforward. Whether you’re curious about the SPICe+ forms,
the documents you’ll need, or what comes after registration, we’ve got you covered.
To make things easier, we’ve answered some of the most common questions about Private Limited Company
registration. These FAQs will help you understand each step clearly and give you the confidence to move forward.
Explore the answers below and take the first step toward building your business.
A Private Limited Company (Pvt Ltd) is a privately held entity with up to 200 shareholders.
It offers limited liability, separate legal status, perpetual succession, and business credibility,
governed by the Companies Act, 2013 under the Ministry of Corporate Affairs.
To register a Private Limited Company, obtain DSC for all directors, apply for DIN, reserve the company name via SPICe+ Part A,
file SPICe+ Part B for incorporation and statutory registrations, then receive the Certificate of Incorporation along with PAN and TAN.
Government filing fees range from about ₹1,000 to ₹2,000 based on capital, while DSCs cost ₹500–₹1,500 per director.
Including professional charges, the total cost of registering a Private Limited Company usually falls between ₹6,000 and ₹15,000.
Yes, the complete registration process—covering DSC, DIN, name reservation, SPICe+ filing, and PAN/TAN issuance—can be done entirely online
via the MCA portal, without any physical visits, if all digital documents are correctly prepared and uploaded.
SPICe+ (“Simplified Proforma for Incorporating Company Electronically Plus”) is an online form introduced in February 2020,
combining 10–11 services like name approval, incorporation, DIN, PAN, TAN, EPFO, and ESIC into a single process, reducing time, cost, and paperwork.
Yes, Class III DSCs are mandatory. All proposed directors must digitally sign incorporation forms using their DSCs
when filing through the MCA portal. Without them, SPICe+ and other required e-forms cannot be authenticated or submitted for registration.
For Directors and Shareholders: PAN card, Aadhaar/Passport, and address proof (utility bill or bank statement).
For the Company: Digital Signature Certificate (DSC), MoA, AoA, and registered office proof.
For Corporate Shareholders: Board resolution and incorporation certificate.
Any individual or entity aged 18 or above can register, requiring at least two directors (one Indian resident), two shareholders,
a registered office in India, unique name approval, and DSCs and DINs for all proposed directors.
A Private Limited Company requires at least two directors (one Indian resident), two shareholders, a registered office in India,
DSCs and DINs, a unique name, and MoA/AoA documents, with no minimum capital requirement after the 2015 reforms.
Yes, a salaried person can become a director of a Private Limited Company unless restricted by their employment contract.
Indian law imposes no general prohibition on salaried individuals holding directorships.
Yes, a Private Limited Company can operate multiple businesses if its Memorandum of Association (MoA) lists all intended activities.
As long as these fall within the approved scope and comply with regulations, running diverse ventures is permitted.
Select a unique, compliant name by avoiding identical or trademarked terms, then check its availability via MCA’s SPICe+ Part A.
Reserve it by submitting proposed names through SPICe+, following naming rules, including the required “Private Limited” suffix.
Ensure the company name is clear by avoiding generic terms, existing trademarks, or restricted words.
Follow MCA naming rules, propose two options in SPICe+, verify availability beforehand.
After registration, obtain the Certificate of Incorporation, PAN, and TAN, open a business bank account,
issue share certificates, appoint the first statutory auditor within 30 days, and apply for GST registration if applicable.
A Private Limited Company must maintain statutory registers, hold board meetings, conduct an AGM, file Annual Return (MGT-7) and Financial Statements (AOC-4),
appoint auditors (ADT-1), complete Director KYC (DIR-3 KYC), and submit forms like DPT-3 and MSME-1 as applicable.
Non-compliance can lead to severe penalties: delayed ROC filings incur ₹100 per day without limit,
prolonged default may cause director disqualification or company strike-off, and inaccurate statutory registers can also attract fines.
GST registration is not universally mandatory—it becomes compulsory only when annual turnover exceeds ₹20 lakh (₹10 lakh in special category states).
Private Limited Companies offer limited liability, separate legal entity status, perpetual succession, enhanced credibility,
ease of raising private equity or venture capital, tax benefits, protected company name, and flexibility with share transfers and ESOPs.
It is a complex and costly setup, stringent compliance obligations, limited access to public funding, restrictions on share transfer,
maximum of 200 members, mandatory disclosure of financials, and a complicated winding-up process.
Limited liability means shareholders are liable only up to their share capital;
personal assets remain safe if the company faces liabilities. Exceptions exist only in cases of fraud or misrepresentation.
Shareholders are owners holding equity; they invest capital and have ownership rights.
Directors manage day-to-day operations and governance. A person can be both, but the two roles carry distinct responsibilities.
No. Private Limited Companies are not permitted to offer shares to the public or issue a public prospectus.
They must raise funds through private investors or institutions only.
Yes, a Private Limited Company can be converted into an LLP if all shareholders become partners,
assets are free from security interests, and conditions are met. It can also convert into a Public Limited Company
via meetings, special resolution, and filing Form INC-27 with ROC.
Yes, to change a registered office, hold a Board meeting, pass a Special Resolution, file Form MGT-14, and submit Form INC-22 (plus INC-23 if moving out-of-state). Notify creditors, obtain required approvals, and update the ROC accordingly
Yes, NRIs and foreign nationals can be directors if they obtain a DIN and DSC. However, the company must have at least one resident director who has stayed in India for 182 days or more in the previous calendar year.
CIN is a unique 21-character alphanumeric code assigned during registration. It identifies the company’s type, location, and year of incorporation.