Company Registration

The default option for start-ups and growing businesses as only private limited companies can raise venture capital.

  • One DSC & up to two DINs

    The directors must be registered with the MCA

  • Company Name Reservation

    We will then help you pick a unique name

  • MoA & AoA

    We will draft your company's constitution

  • SPICe i.e. INC-32 Approval

    Your company is now incorporated

  • Company PAN & TAN

    We will send in a request to the NSDL

What is Company Registration?

Private Limited Company, the most popular legal structure for businesses, should be chosen by anyone looking to build a scalable business. Start-ups and growing businesses choose to register a company in India because it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to attract top talent. As these entities must hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA), they tend also to be viewed with more credibility than a Limited Liability Partnership (LLP), One Person Company (OPC), or General Partnership. At Vakilsearch, we are continuously available to help you understand how to register a private limited company. All such businesses must have at least two directors and shareholders on inception.

6 Essential Facts on Company Registration

What if I am a single founder?

A private limited company is an entity with two directors and two shareholders at the minimum. If you are a single shareholder, you can also bring in your mother, father or any other relative to be part of the limited company with just one single share.

Why do startups prefer private limited companies?

Simple. Startups set-up private limited companies so that they can raise venture capital funding and offer their best employees stock options. Without funding and stock options, it's almost impossible to build and scale a large business. Banks and other lenders would also much rather lend to private limited companies, as compared to sole proprietors.

What is the procedure to register one?

Initially, we help you get a digital signature certificate (also known as DSC), which is nothing but an e-signature to help you complete the registration online. It usually takes two days to get the DSC from the time you submit the documents. Next, we apply for the Director Identification Number (also called a DIN). This typically takes one day. The third phase involves selection of a name for your company. Now, do remember that your company name need not be your brand name. For example, Naukri.com has been incorporated as InfoEdge Technologies. Once done, we will prepare the Memorandum and Articles of Association and apply for the Certificate of Incorporation.

How many shareholders can there be in a private limited company?

A private limited company must have at least two directors and shareholders, and can have a maximum of 15 directors and 50 shareholders.

How much do you need to invest?

Good news. You don't need to invest any money upfront. Most entrepreneurs do bring computers and other necessities at the very beginning. These can be the assets of the company. Private limited companies in India do not need to have any paid-up capital (that is, they do not need to introduce any money into the company).

What regulatory requirements are placed on private limited company?

As private limited companies are not traded publicly, regulatory requirements placed on them are fewer than on public companies. For example, they need not disclose their books of accounts. Because of this advantage, they need only worry about the long term rather than face the music from their shareholders in case their results in a particular quarter are poor.

Advantages of a Private Limited Company

What if I am a single founder?

The default option for start-ups and growing businesses as only private limited companies can raise venture capital.

Investment-ready

The default option for start-ups and growing businesses as only private limited companies can raise venture capital.

Easy Debt Access

The default option for start-ups and growing businesses as only private limited companies can raise venture capital.

FAQs on Private Limited Company

What if I am a single founder?

A private limited company is an entity with two directors and two shareholders at the minimum. If you are a single shareholder, you can also bring in your mother, father or any other relative to be part of the limited company with just one single share.

Why do startups prefer private limited companies?

Simple. Startups set-up private limited companies so that they can raise venture capital funding and offer their best employees stock options. Without funding and stock options, it's almost impossible to build and scale a large business. Banks and other lenders would also much rather lend to private limited companies, as compared to sole proprietors.

What is the procedure to register one?

Initially, we help you get a digital signature certificate (also known as DSC), which is nothing but an e-signature to help you complete the registration online. It usually takes two days to get the DSC from the time you submit the documents. Next, we apply for the Director Identification Number (also called a DIN). This typically takes one day. The third phase involves selection of a name for your company. Now, do remember that your company name need not be your brand name. For example, Naukri.com has been incorporated as InfoEdge Technologies. Once done, we will prepare the Memorandum and Articles of Association and apply for the Certificate of Incorporation.