A private limited company can be formed even if there are only 2 shareholders and 2 directors. The number of members that a private limited company can have cannot be more than 200. The shareholders could be individuals, LLPs or companies. However, only individuals may become company directors. A director must be a company shareholder and they do not necessarily have to be directors.
One of the directors must be an Indian citizen and resident and other director(s) could be foreign nationals.
There must be two persons to act as shareholders and they can be natural persons or legal entities but only artificial. Therefore, there can be two corporate owners of a company who are abroad or in India.
Central Registration Center (CRC)
The company registration nowadays has gone paperless; the documents are electronically filed through the Ministry of Corporate Affairs (MCA) website and the process is done at the CRC, which is a dedicated back office for registration processes.
The Private Limited Company Registration in India process is all online. Once you complete all the formalities of registration, the Registrar of Companies will issue Certificate of Incorporation (COI) with their digital signature. These electronic certificates they issue are verified by the stakeholders on the MCA website.
The Documents Needed
To start your venture, you must accomplish private limited company registration India requirements first. This will make the company registration process smooth and hassle-free. The documents required are important when processing the registration. Aside from your proof of identity, the directors must submit their residence proof that is not older than three months.
Companies that are registered in India must have a registered office. If the property is leased, the copy of lease deed with the NOC provided by the landlord and EB bill/water bill/ property tax receipt is required. If the property is owned, the sale deed copy with EB bill/water bill/property tax receipt must be submitted.
If one shareholder to the MOA and AOA belongs to a corporate entity, the COI has to be attached together with the resolution submitted by an entity to subscribe to the shares of the company when it is incorporated.
For Directors And Members
- Passport-size Photo
- Proof of identity (driver’s license or passport or voter’s ID)
- Proof of address (mobile bill or electricity bill or bank statement)
- PAN Card (Mandatory)
- Passport is required for foreign nationals or non-India residents
- Aadhar Card
- Mobile No.
- Email address
Documents Of The Company
- Company name
- Business objective (The company registration must be done with only one objective).
- Authorized share capital
- Paid up capital
- Company’s registered office
- Property owned (electricity bill or sale deed) or if the property is rented, the ren agreement must be submitted
Director Documents Execution
- Form DIR-2: Consent to be a director
- Declaration on Permanent Account Number (PAN)
- Declaration/Details for Director Identification Number (DIN)
Members Documents Execution
- Digital Signature Certificate application (DSC)
- Subscribers and director affidavit: INC-9
- Documents for company incorporation – MOA and AOA
Foreign Body Corporate Required Documents
- Authorization for execution for an individual to execute company incorporation documents
- Board resolution/ formal authorization for using the name of a Foreign Body Corporate
- Board resolution/ formal authorization allowing them to use the Trademark of Foreign Body Corporate
Easiest For Foreign Nationals
The private limited company incorporation is the quickest and easiest strategy for foreign nationals and foreign companies to open a business in India. 100% of foreign direct investments go into a private limited company or limited company, making it an automatic route. There is no required central government permission. Therefore, forming a private limited company that is entirely owned by a foreign company subsidiary is the easiest and cheapest to own. It is also the easiest strategy to enter India for foreign nationals and foreign companies.
Foreign Direct Investment (FDI)
The FDI in a Private Limited Company can be up to 100% in most of the sectors. There are only a small number of sectors that require an approval from the Central Government for investment made by a foreign company or national before they can operate. These are:
- Petroleum sector (LNG pipelines/natural gas) excluding oil refinery that are privately owned
- Investing in the infrastructure of companies
- Defence and strategic industrie
- Print Media
- Atomic minerals
- Courier Services
- Postal Services
- Satellite operation establishment
- Integrated township development
- Tea sector
If you are interested in registering for a private limited company in India, these are the individual requirements you will need if you are a local or foreign national. Do not hesitate to contact 3E Accounting India to assist you with India company incorporation.