Why Choose a Private Limited Company Structure

A Private Limited Company is one of the most recognized business structures under the Companies Act, 2013. It provides a separate legal entity from its owners and protects the shareholders’ personal assets from business liabilities.

Here’s why it’s preferred over proprietorships or partnerships:

• Limited Liability Protection: Shareholders are only liable to the extent of their shareholding.
• Separate Legal Entity: The company can own assets, enter into contracts, and sue or be sued in its own name.
• Easy Fundraising: Investors and venture capitalists prefer Pvt. Ltd. companies for transparency and structured compliance.
• Credibility & Trust: Being registered with the Ministry of Corporate Affairs (MCA) enhances reputation among clients, banks, and stakeholders.
• Continuity: The business continues to exist even if the directors or shareholders change.

Kanoons Tip: Registering as a Private Limited Company is ideal if you plan to scale, raise funds, or operate in multiple states.

Eligibility & Key Requirements

Before applying for registration, ensure you meet the basic eligibility criteria defined under the Companies Act, 2013:

Kanoons Assistance: Our experts verify your eligibility, reserve your preferred name, and draft professional legal documents (MoA, AoA, INC forms) in compliance with MCA norms.

Step-by-Step Process to Register a Private Limited Company

The registration process is completely online through the MCA portal and typically takes 5–10 working days with proper documentation.

Step 1: Obtain Digital Signature Certificate (DSC)

All directors and shareholders must have a Digital Signature Certificate (DSC) to sign online documents.

Kanoons offers end-to-end DSC registration with same-day issuance for faster processing.

Step 2: Apply for Director Identification Number (DIN)

Directors need a unique DIN, which is applied through SPICe+ (Form INC-32).

Step 3: Name Approval (RUN or SPICe+ Part A)

Choose a name that is distinct, brandable, and compliant with MCA guidelines. You can submit two name options for approval.

Kanoons helps in professional name search and legal verification to avoid rejection.

Step 4: Drafting of Incorporation Documents

Once the name is approved, legal documents such as MoA, AoA, and consent forms (DIR-2, INC-9) are prepared and digitally signed.

Step 5: Filing SPICe+ Form (INC-32)

The SPICe+ form integrates all registrations in one go:

• Company Incorporation
• DIN Allotment
• PAN & TAN
• GST (optional)
• EPFO & ESIC
• Bank Account (through AGILE-PRO form)

Step 6: Certificate of Incorporation (COI)

Once verified by the Registrar of Companies (ROC), you’ll receive your Certificate of Incorporation along with the CIN (Corporate Identification Number).

Kanoons ensures your COI, PAN, and TAN are delivered digitally within 5–7 days.

Documents Required for Private Limited Company Registration

For Directors and Shareholders:

• PAN Card (mandatory for Indian nationals)
• Passport (for foreign nationals)
• Aadhaar Card / Voter ID / Driving Licence
• Passport-size photograph
• Latest utility bill or bank statement (address proof)

For Registered Office:

• Rent agreement or property ownership proof
• Electricity / Water / Gas bill (not older than 2 months)
• NOC from the property owner

Kanoons verifies all documents before submission to prevent rejections and delays.

Timeline & Government Fees

Average Total Time: 5–10 working days

Kanoons Pricing: Complete registration packages start from ₹14,999, including DSC, name approval, incorporation, and legal documentation — all managed by Chartered Accountants and Company Secretaries.

Advantages of Registering a Private Limited Company

• Legal Recognition & Brand Credibility
• Attracts Investors and Venture Capitalists
• Limited Liability for Owners
• Easy Transfer of Ownership
• Separate Legal Entity
• Tax Benefits and Startup India Eligibility
• Perpetual Existence

Kanoons helps startups and MSMEs convert their dream ideas into officially registered companies ready for funding and expansion.

Disadvantages or Limitations

• Mandatory annual compliance & audit costs
• Limited number of shareholders (maximum 200)
• Requires proper accounting and ROC filings
• Certain restrictions on share transfer

However, with Kanoons’ all-inclusive compliance plans, you can manage everything seamlessly without worrying about deadlines or penalties.

Common Mistakes to Avoid During Registration

1. Choosing a name too similar to existing companies
2. Incomplete or mismatched KYC documents
3. Using residential addresses without NOC
4. Ignoring post-registration filings
5. Not maintaining proper board resolutions

Kanoons mitigates these risks through expert documentation and pre-filing review by legal professionals.

Latest Legal & Regulatory Updates (2025 Edition)

• MCA has simplified the SPICe+ form for quicker processing.
• PAN and TAN are now automatically allotted upon incorporation.
• AGILE-PRO form allows direct EPFO, ESIC & GST integration.
• No requirement of minimum paid-up capital.
• E-filing and digital verification have made incorporation fully paperless.