Steps for Private Limited Company Incorporation in India

private limited company

As per the records of MCA Annual Data, each month, more than 10,000 private limited companies are incorporated. Private Limited Company is the most common form of a business entity among small, medium and large companies in India. Many don’t know the process concerning the legal procedure for the incorporation of the company. A private limited company has several basic requirements which need to be accomplished before the incorporation of the private limited company.

These all are the basic requirements

  • There must be at least two members in the company
  • The company shall be made for legal business and must not harm the society. The company objective should not be illegal.

In case, if the registrar issues the certificate of incorporation to such business entity that violates these requirements, the certificate issued to them will be void. Furthermore, the registration will be canceled by the Central government, and the appropriate proceeding will take place against the entity and the registrar.

In the following article, we will dive into understanding the procedure for the incorporation of the private limited company in India in detail. So, let us now begin with the process.

Procure a Digital Signature Certificate (DSC)

The very first step in the incorporation procedure is to procure a DSC, i.e. Digital Signature Certificate for the directors involved in the private limited company. The requirement of DDC arises to fill e-forms. DSC is compulsory for all the directors in the company which you can obtain by approaching Certifying Authorities (CAs) with this list of documents.

  • Passport size photograph of the applicant;
  • Self-attested Address proof of applicant; and
  • Self-attested PAN card of the applicant.

Working days: 1-3 days and it is valid to 1 or 2 years.

Get a Director Identification Number

DIN, also known as a director identification number, is a unique number allotted by MCA to the individual applying for allotment of DIN. The DIN is assigned for a lifetime unless withdrawn. A DIN is mandatory to be appointed as the director in any company. 

Documents required for application of Director Identification Number: 

  • Passport size photograph of the applicant;
  • Self-attested Address proof of applicant; and
  • Self-attested PAN card of the applicant.

Reservation of Name

Before the private limited company incorporation, the promoters must propose one or more suitable names for the name of the company. This is required so that in case the one name is identical to some other registered business entity or trademark then the Registrar can select the other name.

What is to be focused while reserving the name for your private company?

  • The name should not be similar or identical to any registered company or trademark.
  • The name should not be one prohibited under the ‘Emblems and names Act, 1950’.
  • The name of the company must have suffix “Private Limited Company

After applying for the reservation of the name, the Registrar will analyze and approve one of the names. Usually, it takes 3-5 working days for the approval of the name of the company.

Filing for Incorporation of Private Limited Company

Once the name approval is done, promoters should submit the application fee that is prescribed along with the following documents to the registrar.

  • Articles of Association
  • Memorandum of Association
  • Declaration of directors
  • Affidavits of the directors

A declaration is also to be submitted stating that the requirements of the Act and rules framed have complied which is to be signed by.

  • An Advocate of the Supreme Court or an attorney, or
  • A pleader having the right to appear before or a High Court, or
  • Chartered Accountant in whole-time practice in India who is engaged in the incorporation of a company, or
  • A person listed in the Articles as a Director, Manager or Secretary of the Company.

Besides, the company must provide relevant information regarding its registered office in 15 days of registration.

Subscribing to the Private Limited Company

As per the clause of Companies Act 2013, subscribers must sign their names and must have shares of the company incorporated. It means each subscriber must hold at least one share of the company incorporated. Furthermore, the subscribers must sign the memorandum in the presence of at least one witness and must state the following clearly.

  • Address
  • Personal Description
  • Occupation
  • No of shares subscribed
  • Nature of shares etc.

The same way both MOA and AOA must be duly signed and stamped.

Issue the Incorporation Certificate

After the approval of AOA and MOA, you will get the incorporation certificate which has the date of incorporation and the PAN (permanent identification number) of the company.


Company registration under ROC is mandatory for all companies. Business owners must know what all it requires for the incorporation of a private limited company. Today, everything is digitally revolutionized, and the revolution is yet benefitting the entrepreneurs. Many online portals and company registration service providers are now available that makes the process very easy for you. Grab the deal from them soon!

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