Private Limited Company is the most prevalent and popular type of corporate legal entity in India. The Ministry of Corporate Affairs governs private limited company registration in India. Companies are incorporated and regulated under the Companies Act, 2013 and the Companies Incorporation Rules, 2014. IndiaFilings can help you with company registration across India at a very affordable price point.
ELIGIBILITY AND REQUIREMENTS
To register a private limited company, a minimum of two persons to act as Directors and shareholders are required. The shareholders of a private limited company can be a corporate entity or a natural person. Director can only be a living person with one Director being a resident and Indian Citizen. A person is designated as a resident if he/she spends over 186 days in India.
There are no restrictions on foreign companies or foreign nationals being Directors or shareholders of a private limited company. As, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and Shareholders of a Company with Foreign Direct Investment, incorporating a company is the preferred choice of entry to India for foreign promoters.
PROCESS FOR COMPANY REGISTRATION
IndiaFilings can incorporate a company in less than ten days - subject to Government processing times and availability of all documents. On collecting the necessary information and documents digitally, the process for company registration begins with obtaining digital signatures for the proposed Directors and Shareholders. Your IndiaFilings Engagement Manager will submit the digital signature application and generate a link to complete video eKYC verification. The applicant would then have to complete a short selfie video and verify OTP to authenticate the application. Upon approval of the application, the digital signature will be issued on the same day.
Parallel to the digital signature process, your Engagement Manager will also submit a name approval request to the Ministry of Corporate Affairs for approval. Please ensure that you provide multiple options for the company name that are in line with the Companies Naming Regulations in India to ensure quick approval. The Government typically provides name approval within 48 hours in India.
On obtaining name approval, we will prepare all the legal documents that must be signed by the Directors and Shareholders on the same day. Once you have verified the documents and signed off, we will apply for incorporation with the MCA on the same day. The MCA will provide incorporation approval in about 48 - 72 hours during business days. If the incorporation approval is approved, the Government will issue the incorporation certificate, PAN for the company and the TAN.