Private limited company Registration in Mumbai
Are you looking to register your company as a Private Limited Company (Pvt Ltd) in Mumbai? Our expert team can help you with company formation and compliance requirements.
In India, the most common business structure for forming a company is a private limited company. A private limited company can be formed by multiple private owners. The liability of the owner is limited to their ownership stake, and shares of private limited companies are not publicly traded.
If you're specifically interested in private limited company registration in Mumbai, our team is well-equipped to guide you through the process.
It has a minimum of two directors and a maximum of fifteen directors. Private Limited Company Registration requires at least two shareholders/members. A natural person can be both a director and a shareholder, as can a corporate legal entity and foreign nationals. That is why a private limited company formation is the preferred choice for foreign promoters for starting a business in India.
If you do not have any business partners, a One Person Company registration is recommended for a single business owner.It is recommended that you evaluate the company structures available for launching a business.
Private limited company formation in 4 easy steps.
Procure digital signature of directors
Obtain DIN no of directors
Company name approval
The company name is identified as (business name private limited).
Upon obtaining incorporation certificate, it acquires your business a proper legal company status and grants you the rights of undertaking business in India and globally. This type of business entity provides the best protection of personal assets as the founders, directors, and stockholders; they are not liable for the company’s debts and obligations. This private limited company formation is recommended for tech business, consultancy business, startups, small and medium enterprises.
What are the requirements for a private limited company registration?
- Unique name: To register a private limited company, you must have a unique name for the proposed company. Ministry of corporate affairs(MCA) has has outlined the rules of choosing a company name.
- Directors: There must be at least two individuals required for directors appointment in the company, age must be above 18 years and at least one director must be a resident of India who must have stayed in India for at least 182 days in the previous financial year.
- Shareholders: There must be at least two shareholders; they can be a natural person or can be an entity. It is quite common in new company registration for directors to also be the shareholders. Percentage of shareholding must be defined.
- Company objects: To start a private limited company, you must define the nature of business, range of business activities that company will undertake.
- Authorized capital: You must decide the authorized capital while incorporating a private limited company, the authorized capital of a company is the maximum amount of share capital for which shares can be issued by a company to its shareholders. The initial authorized capital of the company is usually Rs. 1 lakh.
For example: suppose a company has an authorized capital of Rs 300000, then it can issue shares worth up to Rs 300000 to its shareholders and cannot issue anything beyond it.
- Registered office: When you start a company in India, the law requires that your business must have an official address where any communication relating to the company is sent. The registered office address will be reflected on the incorporation certificate. This address will be publically available on the registrar of companies (ROC) website for anyone to see. Office can be owned or rented and can be commercial or residential premises. You can use your residential address as your company registered office. Registered office address must be displayed on all company stationery, websites and emails.
- Documents: Private limited company registration process is an online process, you can just scan / photograph the attested documents of directors, shareholders and registered office from your mobile phone and send them to us, and the rest will be taken care of.
Why choose private limited company
- Ease of formation: Private limited company incorporation is an online process, hence it becomes very easy for formation.
- Separate legal entity: Private limited company is treated as an artificial person; it can acquire, own, enjoy and alienate assets in its name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc. no shareholder can make a claim upon the assets of the company.
- Limited liability: Since a private limited company is a separate legal entity from its members; its liability of the members for the company’s debts is limited to their respective ownership in the company. It provides the best protection for personal assets, as the founder, directors, and shareholders are usually not liable for the company’s debts and obligations. In the extreme case of a financial bankruptcy of the company, loss will be limited to the value of shares held by shareholders. It means that only the assets of the business are at risk, and not the shareholders personal assets such as personal bank accounts, cars and houses.
- Easy raising funds: For any startup, funding is essential for establishing, maintaining, and growing a business. A business can be self-funded, funded by friends, family, or by debt or equity. Proprietorships, partnership firms, and LLP cannot issue shares, and are thereby unable to attract equity funding whereas a private limited company enjoys facility of equity funding through issuance of shares. Banks, financial institutions, venture capitalists prefer to provide funding to a private limited company rather than partnership firms, proprietorship firms or any other types of entity.
- Lifetime existence: A private limited company has a lifetime existence unless it is liquidated or closed by ROC. Ownership can be transferred very easily.
- High reputation: Private limited companies are the most popular business structure by virtue of transparency; it has a high recognition across the globe.
- Going global: Private limited companies are allowed to have 100% foreign direct investment through the automatic route, it means, any foreign entity or foreign person can invest in a private limited company without any prior government approval. Entities like proprietorship and partnership require prior approval from the government to accept investments from foreign entities.
- Easy exit: Private limited companies have the best type of exit strategy for all promoters. Only shares of a company can be sold or transferred in part or whole to another person easily without any hassles. Also a private limited can be closed easily if promoters don’t want to continue the business.
- Pursue multiple opportunities: It is difficult for a proprietorship or partnership in pursuing business opportunities that come their way, as they are not considered separate legal entities and are tied to the promoter. Whereas in private limited, it allows the promoter to pursue multiple opportunities as the business evolves over time.
Documents requirement for private limited company registration:
Director’s documents for private limited company registration:
- Passport size photograph.
- Copy of pan card.
- Copy of passport/driving license/voter identity card.
- Proof of residence (electricity bill/telephone bill /mobile bill / bank statement ) not older than 2 month.
Documents required for the registered office:
- Latest electricity bill/ mobile bill/telephone bill (business place)not older than 2 month
- Copy of rent agreement (if rented property).
- Copy of property papers(if owned property).
- Landlord NOC (format will be provided).
If shareholder & directors are different then following documents of shareholders are required:
In case shareholder is a natural person:
- Copy of pan card.
- Copy of passport/driving license/ voter identity card.
- Proof of residence of shareholders (electricity bill/telephone bill /mobile bill / bank statement) not older than 2 month.
In case shareholder is corporate body:
- Registration certificate.
- Copy of pan card.
- INC-22 and challan if the address is different from the registration certificate
All documents should be self attested, and to be provided as soft copy.
Have questions about Private Limited Company?
We have got you covered:
What is required to register for a private limited company?
Apart from the necessary documents, a minimum of two directors or two shareholders, and a registered office address is also mandatory for company registration.
- How much is the minimum capital to form a private limited company?
- Is it mandatory to appoint a company secretary in a private limited company?
- Can foreign nationals and entities or NRIs register a company in India?
- Who is eligible to become the director and how many minimum directors are required to incorporate a private limited company?
- Is an address proof mandatory?
- What is paid up capital, how is it different to authorized capital?
- What is the difference between a private limited company and a public limited company?
- Can I change the name of my private limited company after registration?
- Can a private limited company convert into a public limited company?
- What is the tax rate for a private limited company in India?