• Limited Liability Protection to Director's personal assets

Many times startups need to borrow money and take things on credit. In the case of normal Partnerships, Partner's personal savings and property would be at risk in case business is not able to repay its loans. In a private limited company, only investment in the business is lost, personal assets of the directors are safe.

• Better image and credibility in Market

A Private limited company is a popular and well-known business structure. Corporate Customers, Vendors and Govt. Agencies prefer to deal with Private Limited companies instead of proprietorship or normal partnerships. 

• Easy to raise funds and loans

Pvt. Ltd. Company enjoys wide options to raise funds through bank loans, Angel Investors, and Venture Capitalists, in comparison to LLPs and OPCs. 

• Favorite Business structure for Investors

Investors love to invest in Private Limited companies as it is well structured and has fewer strings attached. Most important it is very easy to exit from a private limited company.

• Easy to attract Employees

For startups putting together a team and keeping them for a long time is a challenge, due to confidence attached to the private limited structure, it is easy to hire people as well as motivate them with corporate designations and stock options. 

• Easy to Sell

Private Ltd. is easy to sell, very less documentation and the cost is involved in selling a Pvt. Ltd. company. 

• Minimum Shareholders - 2 Nos

• Minimum Directors - 2 Nos

• The directors and shareholders can be the same person

• One of the Directors must be an Indian Resident

• Minimum Authorised Share Capital - ₹ 100,000 (INR One Lakh)

• DIN (Director Identification Number) for all Directors

• DSC (Digital Signature Certificate) for one of the Directors

• PAN & Aadhar of 2 Directors

• Scan copy of Passport size photographs of Both Directors

• Scan copy of Specimen Signatures of Both Directors

• Address Proof of Both Directors (Eg: Electricity Bill, Telephone Bill etc) in case Aadhar address is different

• Latest 3 months Bank statement of Both Directors

• Mobile Numbers & Email IDs of Both Directors

• DIN for 2 Directors

• Digital Signature Token for 1 Director

• Company Name Approval

• MOA + AOA

• Incorporation Certificate

• Company PAN Card

• Company TAN/TDS Number

• Domain, Website with hosting for 1 Year

• Accounting setup in Zoho Books

You need to arrange very simple documents of directors like a photograph, Pan card and one address proof.

No, commercial office space is not required. You can show your own residential or rented home address as the registered office address of the Company. This office address can be changed at any time after the incorporation of the company. Once your startup is set up, stable and ready to move on to a nice corporate space you can change the registered office address by informing the ROC office.

ROC is a Government office with which companies get registered. Every State has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices. In Maharashtra, companies are registered with Mumbai & Pune ROC. In Tamilnadu, companies are incorporated at Chennai and Coimbatore ROCs. In all other States like Delhi, there is only one ROC office, like in Bangalore, Hyderabad and so on.

Director Identification Number (DIN) is a unique identification number required for a person to become a director of a company. DIN is issued by the ROC office (Ministry of Corporate Affairs). It is similar to a PAN Card number. DIN is to be mentioned in documents while appointing a person as a director of a company.

A digital signature is an electronic signature, which is in the form of codes. It is used for signing the electronic forms, filed with ROC for incorporation of the Company. Digital Signatures cannot be used in physical documents.

A Company name is a very important part of the registration of the company. 

It is divided into 3 Parts:

1) Keyword (brand name like Reliance or Amazon) 

2) Activity word (i.e. showing nature of business like Software) 

3) Business Type word (i.e. Pvt. Ltd. or LLP). 

For the Incorporation of the company, the suggested name should not match with existing companies or trademarks.

MOA means Memorandum of Association and AOA means Articles of Association. These are the bye-laws or rules based on which important matters like the main business of the company or meetings are decided. These are standard legal documents prepared by Company Secretaries during the registration of the Company.

Yes, the company office address can be changed anytime after incorporation.

No. Once the company is formed, it will be valid till it is officially closed down by the owners. No renewal or fees is required. However, every year companies have to file very basic returns with the ROC office.

No. We provide a complete online Company Incorporation process. All legal documentation with ROC and visits are done by us.

Capital means investment made by shareholders into the company. The authorised capital is an amount up to which a company can issue shares. This capital is mentioned during the incorporation of the company based on which ROC registration fees and stamp duty is paid. Paid-up capital is an actual investment that goes from shareholders into the company's bank account, against which a share certificate is issued by the company.

No. After the company is registered, it needs to open a company bank account and then anytime within two months of incorporation, capital can be deposited into the Company bank account.

This is not true, a Private limited company is one of the modes of doing business, which means it can be started from scratch. For that matter even after incorporating a private limited, there is no obligation that the company must have sales or turnover.

There is no automatic applicability. Provident Fund (PF), Service Tax or VAT law applicability is the same for all types of businesses like a sole proprietorship, partnership firms and companies. These laws are applicable only after crossing certain threshold limits.