Why Choose Private Limited Company Structure?
A Private Limited Company (Pvt Ltd) is the most preferred business structure in India for startups and growing businesses. With over 1.5 lakh new companies registered every year, the Pvt Ltd structure offers the perfect balance of credibility, limited liability, and growth potential.
Key Advantages of Private Limited Company
- •Limited Liability Protection: Your personal assets are protected. Shareholders are only liable up to their share capital contribution.
- •Separate Legal Entity: The company has its own identity, PAN, bank accounts, and can own property.
- •Easy Fundraising: Pvt Ltd companies can raise equity funding from angel investors, VCs, and institutional investors.
- •Perpetual Succession: The company continues to exist regardless of changes in ownership or management.
- •Enhanced Credibility: Banks, vendors, and clients prefer dealing with registered companies.
Step-by-Step Registration Process
Step 1: Obtain Digital Signature Certificate (DSC)
The first step is getting a Class 3 Digital Signature Certificate for all proposed directors. DSC is mandatory for filing electronic forms with the Ministry of Corporate Affairs (MCA).
Documents Required for DSC:
- •PAN Card of the director
- •Aadhaar Card or Passport
- •Passport-size photograph
- •Email ID and mobile number
Cost: Rs 990 per DSC (at Setup India, we charge actual cost with zero markup)
Timeline: 1-2 working days
Step 2: Name Approval through RUN (Reserve Unique Name)
You need to apply for name approval through the MCA portal using the RUN (Reserve Unique Name) service.
Name Selection Tips:
- •Choose a unique name that does not resemble any existing company
- •Avoid names that include restricted words (e.g., Government, Reserve Bank)
- •Include the activity or industry keyword in the name
- •Have at least 2 name options ready
Timeline: 2-3 working days for approval
Step 3: Draft MOA and AOA
The Memorandum of Association (MOA) and Articles of Association (AOA) are the foundational documents of your company.
- •MOA defines the company's objectives, scope of activities, and authorized share capital
- •AOA contains the rules and regulations for the internal management of the company
Step 4: File SPICe+ Form
The SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) is the integrated form that handles multiple registrations simultaneously:
- •Company Incorporation
- •DIN (Director Identification Number) allotment
- •PAN and TAN application
- •EPFO and ESIC registration
- •Professional Tax registration (in applicable states)
- •Bank account opening (with partner banks)
Step 5: Receive Certificate of Incorporation
Once the Registrar of Companies (RoC) approves your application, you receive:
- •Certificate of Incorporation with CIN (Corporate Identification Number)
- •Company PAN Card
- •Company TAN
- •DIN for all directors
Documents Required for Company Registration
For Indian Directors/Shareholders:
- PAN Card (mandatory)
- Aadhaar Card
- Passport-size photograph
- Proof of address (Aadhaar/Voter ID/Driving License)
- Mobile number and email ID
For Registered Office:
- Rent agreement or ownership proof
- Latest utility bill (electricity/water/gas)
- NOC from the property owner
Company Registration Fees Breakdown
Understanding the true cost of company registration is crucial. Many platforms advertise low prices but add hidden charges later.
| Component | Government Fee | Our Fee |
|---|---|---|
| DSC (per person) | - | Rs 990 (actual cost) |
| Name Approval (RUN) | Rs 1,000 | Included |
| SPICe+ Filing | Rs 500-7,000* | Included |
| Stamp Duty | Varies by state | At actual |
| Professional Fee | - | From Rs 1,499 |
*SPICe+ government fee depends on authorized capital
State-wise Stamp Duty Reference
Stamp duty varies significantly across states:
- •Delhi: Rs 1,000 (lowest in India)
- •Maharashtra: Rs 1,300
- •Karnataka: Rs 3,000
- •Kerala: Rs 5,000
- •Uttar Pradesh: Rs 2,500
Timeline: How Long Does It Take?
| Step | Duration |
|---|---|
| DSC Procurement | 1-2 days |
| Name Approval | 2-3 days |
| SPICe+ Filing | 3-5 days |
| Certificate of Incorporation | 1-2 days |
| Total | 7-12 working days |
With Setup India's Growth Plan, we fast-track the entire process and complete your registration in as little as 7 days.
Common Mistakes to Avoid
- Not checking name availability before applying - leads to rejection and delays
- Incorrect address proof for registered office - the utility bill must be less than 2 months old
- Mismatched signatures on DSC and documents
- Insufficient authorized capital - plan for future funding rounds
- Not appointing a resident director - at least one director must be an Indian resident
Post-Registration Compliance
After incorporation, you must complete these steps within 30 days:
- •Open a company bank account
- •Apply for GST registration (if applicable)
- •Register for MSME/Udyam (if eligible)
- •Hold the first Board Meeting within 30 days
- •File commencement of business declaration (INC-20A)
Why Choose Setup India for Company Registration?
- •Transparent Pricing: Starting at Rs 1,499 with no hidden fees
- •Expert CA Team: Dedicated Chartered Accountant for every registration
- •Fast Processing: 7-day fast-track delivery with Growth Plan
- •Post-Registration Support: Free compliance guidance after incorporation
- •Real DSC Pricing: We charge Rs 990 per DSC at actual cost - no markup
Ready to register your company? Get started with Setup India today and join 10,000+ businesses that trust us.