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Private Limited Company

Private Limited Company is the most popular form of business entity in India and also among foreign investors. To incorporate a private limited company, a minimum of two shareholders are required and can have up to a maximum of 200 shareholders. A private limited company must have a minimum of two Directors and can have upto a maximum of fifteen Directors. The Director needs to be over 18 years of age and must be a natural person, there are no limitations in terms of citizenship or residency. Therefore, foreign nationals can be directors in a Indian Private Limited Company. Minimum of one lakh authorised capital is required to form a private limited company in India. A foreign Company can hold shares of a Private Limited Company in India subject to Foreign Direct Investment (FDI) Guidelines.

A private limited company has all the advantages of partnership namely flexibility, greater capital combination of different and diversified abilities, etc., and at the same time it has advantages of limited liability, greater stability and legal entity. In this sense, a private limited company stands between partnership and widely owned public company. Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly.

Expedite Standard

Private Limited Company Registration with 2 DSC, 2 DIN, 1 RUN Name Approval, Upto10 lakh authorised capital, Incorporation Certificate, PAN, TAN, Share Certificates, Incorporation Kit in 3 working days.
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Expedite Premium

Private Limited Company Registration with 2 DSC, 2 DIN, 1 RUN Name Approval, Upto 10 lakh authorised capital, Incorporation Certificate, PAN, TAN, Share Certificates, Incorporation Kit in 3 working days and GST Registration.
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Expedite Elite

Private Limited Company Registration with 2 DSC, 2 DIN, 1 RUN Name Approval, Upto 10 lakh authorised capital, Incorporation Certificate, PAN, TAN, Share Certificates, Incorporation Kit in 3 working days, GST Registration, Logo Designing and Trademark Registration.
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Why to Register as Private Limited Company

Separate Legal Entity


Private Limited Company is a legal entity and a juristic person established under the Companies Act. Hence, a company has a range of legal capacities including opening of a bank account, hiring of employees, taking on equity or obtaining licenses and more as an independent corporate entity. The members (Shareholders/Directors) of a company have no personal liability to the creditors of a company for company's debts.

Uninterrupt Existence


Private Limited Company has 'perpetual succession', meaning uninterrupted existence until it is legally dissolved. A company being a separate legal person, is unaffected by the death or other departure of any member and continues to be in existence irrespective of the changes in ownership.

Easy Transferability


Ownership of a business can be easily transferred in a company by transferring shares. The signing, filing and transfer of share transfer form and share certificates is sufficient to transfer ownership of a company. In a private limited company, the consent of other shareholders may be required to effect share transfers.

Borrowing Capacity


Private Limited Companies can raise equity funds in India. Companies can also issue equity shares, preference shares, debentures and accept deposits with RBI permission. Banks and Financial Institutions prefer to provide funding to a company rather than partnership firms or proprietary concerns.

Owning Property


Private Limited Company being an artificial person, can acquire, own, enjoy and alienate, property in its name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., No shareholder can make a claim upon the property of the company - as long as the company is a going concern.

Limited Liability


Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a LLP the liability of the members in respect of the company's debts is limited.

Documents  Required  For  Private  Limited  Company  Registration

Identity and Address Proof

Identity and address proof will be required from all Directors and Shareholders of the Private Limited Company to be incorporated.In case of Indian nationals, PAN is mandatory. For foreign nationals, apostil led or notarised copy of passport must be submitted mandatorily. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than two months old.

Registered Office Proof

All companies must have a registered office in India. To prove access to the registered office, a recent copy of the electricity bill, gas connection bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.

List of Documents

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LIMITED LIABILITY PARTNERSHIP REGISTRATION PROCESS

Obtaining DSC & DPIN

Digital Signature Certificate (DSC) and Director Identification Number (DIN) is required for the proposed Directors of the Private Limited Company. DIN and DSC can be obtained for the proposed Directors within 3 to 4 working days.

Name Approval

A minimum and a maximum of one proposed name must be submitted to the MCA through RUN option. Subject to availability, naming guidelines and MCA processing time, Name Approval can be obtained in 2-3 working days.

Private Limited Company Registration

Registration documents can be submitted to the MCA along with an application for registration. MCA will usually approve the application for incorporation in 3-4 working days, subject to their processing time.

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Compare Your Options

Startup Registration
Options

Recommended For

Ease of Accommodating Investment

Limited Liability Protection

Tax Advantages

Perpectual Existence

Statutory Compliances

 

Private Limited
Company

Start-ups and growing companies

Very easy to accommodate

Yes

Few benefits

Yes

High

Limited Liability
Partnership

Professional services firms

Possible, but unlikely

Yes

Most efficient

Yes

Low

One Person
Company

Sole promoters

Possible, but severely unlikely

Yes

Few benefits

Yes

High

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Frequently Asked Questions

No, new company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.
If you have all the documents in order, it will take no longer than 10-12 days. However, this is dependent on the workload of the registrar.
It must be short & simple, meaningful, unique, shouldn’t be illegal / offensive.
All directors must provide identity and address proof, as well as a copy of the PAN Card (for Indian Nationals) and Passport (for foreign nationals). No-objection Certificate must be submitted by the owner of the registered office premises.
The DSC is an instrument issued by certifying authorities (Sify) by which you can sign electronic documents. As all documents needed are electronic, directors need a DSC.
The cost of running a private limited company can be divided into four categories: cost of setting a private limited company, cost of accounting and auditing, cost of compliance and miscellaneous expenses. At the very minimum, you can expect to spend Rs. 35000 on all of these.
Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs or rupees and even lead to the blacklisting of directors.
These documents contain the rules, vision and mission of your organisation, and define, among other things, the exact business and the roles and responsibilities of shareholders and directors.
Yes, a minimum of two directors are needed for a private limited company. The maximum members can be 200. You can register as a One Person Company, if you are the sole owner of the company.
Yes, a salaried person can become the director in private limited, LLP or OPC private limited company. One needs to check the employment agreement if that allows for such provisions. In a lot of cases, the employers are quite comfortable with the fact that their employee is a director in another company.