Incorporating a private company is the process of legally establishing a distinct business entity separate from its owners, often referred to as shareholders. This separate legal structure provides various benefits, including limited liability for shareholders, enhanced credibility in the business world, and the ability to raise capital through the issuance of shares.

Key points for consideration

• Governing Act- Private companies are governed by the Companies Act, 2013.
• Member- A minimum of two members and maximum of 200 members are required to establish a private company in India.
• Directors- A minimum of 2 and maximum of 15 directors are required in a private company. However, for maximum of 15 directors, the company needs to pass the special resolution, and they need to appoint a woman director as well as one resident director.
• Subscription of shares- In a private company, public subscriptions are not allowed.
• Issue of prospectus- It is not mandatory for a private company to issue a prospectus.
• Annual Statutory Filings- Filing the annual statement of accounts and annual returns with Registrar of Companies.

Documents required to establish a Private Company in India

• Articles of Association (“AOA”)
• Memorandum of Association (“MOA”)
• Proof of registered office address, lease agreement, No Objection Certificate (“NOC”) from the owner, and utility bill not older than 2 months
• Consent or declaration Form from the first director and first subscribers
• Interset of first Director in another entity, and also there subscriber rights
• Proof of identity and address of subscriber, Nominee Director and Director(s), and
• Proof of identity and address of the witness to MOA and AOA (not required in cases where the witness is a professional, such as Chartered Accountant/ Company Secretary)

Registration Regime of a Private Company

• Select and Reserve a Company Name: Begin by choosing a unique company name and ensuring its availability for registration. If another company has already registered the same name, you will need to opt for an alternative one.
• Designate a Registered Office Address: Decide on the official registered office address for your company. Keep in mind that this address will be publicly accessible through Companies House or a similar authority.
• Determine the Company Type: Determine the legal structure for your company, whether it’s a private limited company (“Ltd”), a partnership, a sole proprietorship, or a limited liability partnership (“LLP”).
• Secure Digital Signature Certificates (“DSC”) and Director Identification Numbers (“DIN”): Apply for DSCs and DINs for the company’s directors. These digital signatures and identification numbers are essential for legal compliance.
• Apply for Name Availability: Submit an application for name availability to the Registrar of Companies or the relevant authority in your jurisdiction.
• File e-Memorandum of Association (“eMoA”) and e-Articles of Association (“eAoA”): Prepare and file the eMoA and eAoA documents, which outline the company’s objectives, rules, and regulations, for the purpose of registering your private limited company.
• Apply for PAN and TAN: Apply for the company’s Permanent Account Number (“PAN”) and Tax Deduction and Collection Account Number (“TAN”), as these are essential for taxation and financial transactions.
• Gather Other Required Documentation: Collect any additional necessary documents, including proofs of residence, notarized rental agreements, No Objection Certificates (“NOCs”) from property owners (if applicable), and copies of property deeds (for owned properties).

How we can help?

We can assist you in the process of establishing a company in India by providing guidance on the required documents, such as identity proof, address proof, PAN cards, and passport-sized photographs for directors and shareholders, along with address proof for the registered office.

We can also help you navigate the complexities of obtaining a DSC and DIN, which are essential for company registration. Our expertise ensures a smooth and efficient incorporation process, saving you time and effort.

For more information or queries, please email us at
[email protected]