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How to Register a Private Limited Company in India: A Step-by-Step Guide

If you intend to commence a business in Mumbai or any other part of India, it is recommended to get registered as a private limited company. Private limited company registration is a popular choice among entrepreneurs due to its various benefits, such as little liability protection, ease of raising funds, and credibility in the market. If you are looking for a step-by-step guide on how to register a private limited company, then you are at the right place. NHJC & Company, Chartered Accountants are happy to provide a comprehensive guide on pvt ltd company registration.

Step 1: Choosing a Unique Name for Your Company

The first step for private limited company registration is choosing a unique name for your company. The name should not be like any existing company’s name and should comply with the guidelines of the Companies Act 2013. The name of your company should also end with “Private Limited” or “Pvt. Ltd.” as per the rules set by the Ministry of Corporate Affairs (MCA). It is recommended to conduct a thorough search on the MCA website to check the availability of the desired name.

Step 2: Obtaining Digital Signature Certificate (DSC)

For registering your private limited company in India, you need to obtain a Digital Signature Certificate (DSC) for the proposed directors of the company. A DSC is a digital equivalent of a physical signature to sign electronic documents. It is mandatory to file the company registration documents online with the MCA.

Step 3: Obtaining Director Identification Number (DIN)

Next, you will need to obtain a Director Identification Number (DIN) for each of the proposed directors of the company. DIN is a unique identification number the MCA assigns to individuals who wish to become company directors. DIN is required to be mentioned in various company-related documents and filings.

Step 4: Preparing the Company Registration Documents

Once you have obtained the Digital Signature Certificate (DSC) and Director Identification Number (DIN), the next step in registering a private limited company in Mumbai is to prepare the required company registration documents. These documents include the Memorandum of Association (MOA), Articles of Association (AOA), Form SPICe (INC-32), and Declaration by Directors and Subscribers.

The Memorandum of Association (MOA) is a legal document that contains the company’s name, registered office address, object clause, and capital structure. It defines the scope of activities in which the company can operate.

The Articles of Association (AOA) is a document containing the company’s internal rules, regulations, and by-laws. It outlines the company’s directors’ and shareholders’ rights, powers, and duties.

Form SPICe (INC-32) is a proforma for incorporating a company electronically. It includes details of the proposed directors, shareholders, registered office address, and other relevant information.

Declaration by Directors and Subscribers is a declaration that needs to be signed by the proposed directors and subscribers of the company. It states that they are not disqualified from becoming directors or shareholders of a company.

Step 5: Filing the Company Registration Documents

After preparing the company registration documents, you must file them online with the MCA through the SPICe+ portal. Along with the documents, you also need to pay the required registration fees based on the company’s authorized capital. Once the documents and fees are successfully submitted, the MCA will verify the documents and issue a Certificate of Incorporation (COI) if everything is in order.

Step 6: Obtaining Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN)

After obtaining the Certificate of Incorporation (COI), you need to apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for your private limited company. PAN is a unique identification number assigned by the Income Tax Department, which is required for various tax-related purposes, such as filing income tax returns and conducting financial transactions. A Tax Deduction and Collection Account Number (TAN) is a unique number assigned to every entity required to deduct or collect taxes at the source. It is used for tracking and reporting tax payments to the government.

Get your pvt ltd company registration done confidently, with NHJC & Company as your trusted accountants. Our expert team in Mumbai will guide you through the entire registration process, ensuring compliance with all the legal requirements. Leave the paperwork to us while you focus on growing your business. Contact NHJC & Company now to take the first step toward establishing your dream company in Mumbai!

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NHJC & Company is a specialized consulting firm promoted by Chartered Accountants Neeraj Jaiswal and Hardik Chotalia. We offer a broad range of professional services in accounting, assurance & support service, tax, advisory, regulatory, and more to clients in India and overseas. 

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