India is an emerging superpower with an advancing economy and a huge market. Thus, it is an exciting place to set up your business for the future. Furthermore, the growing digitization has made the process of company formation quick and convenient. Moreover, the existing laws of the country are supportive of new companies and businesses. Here, we will learn about private limited company registration requirements in India so that you are well prepared for the next big step.
Private Limited Company Registration Requirements: The Company Structure
According to the Companies Act 2013, there must be a minimum of two and a maximum of two hundred members. A private limited company can have a maximum of fifteen directors. A company director must be over eighteen years old. Likewise, foreign nationals can also become a director of the company. However, they must live in India for nearly six months (182 days) prior to the appointment. Furthermore, the director of the company must possess a DIN (Director’s Identification Number). A DIN is a unique identification code issued by the Ministry of Corporate Affairs.
Minimum Paid-Up Capital
A private company must possess a minimum paid-up capital of one lakh Indian rupees, or nearly 1400 US Dollars.
Choosing a company name is one of the most important tasks that must be carried out carefully. You must be aware of conflicts with existing trademarks which might lead to potential lawsuits. The private limited company name must cover the main name, the activity of the company, and it must be followed by ‘Private Limited; at the end. There is a provision of sending about five to six names for approval from the registrar of the company.
Digital Signature Certificate
The company must possess a digital signature certificate. This is because there must be a verification of legitimacy and authenticity in all the documents that are exchanged online.
Private Limited Company Registration Requirements: The Documents
Private company registration in India requires some important documents. This is true for both Indian and foreign individuals. You must present proof of identity, proof of address, and proof of your residence.
As a proof of identity, Indian nationals must present a copy of the PAN (Permanent Account Number) card. Likewise, foreign nationals must present their passport.
For address proof, Indian nationals must present their current address and the document must not be older than two months. You can present your passports, voter identity cards, driving licenses, telephone, and electricity bills as proof of address. Likewise, foreign nationals must provide a notarized address proof not older than two months. Driving license, bank statements, and government-issued documents can account for address verification.
Similarly, an Indian national must present proof of residence to validate the current address. You can use the telephone bills, electricity bills, and bank statements not older than two months, as proof of residence. Likewise, foreign nationals must also present proof of residence and can use the same set of documents.
How We Can Help?
In this article, we have learned the private limited company registration requirements in India.
3E Accounting India can help with your company registration process and make your job convenient and hassle-free. Our financial advisory, audit and assurance, corporate law, domestic tax, and business process outsourcing services are top-notch and guarantees satisfaction. Furthermore, we can promise you the best financial services in the most cost-effective manner. Moreover, thousands of satisfied customers worldwide are proof of our incredible professionalism.
India company incorporation is one of our most essential services and you do not need to look any further now.
We also offer a free consultation for those interested in setting up a company in India.
Call us at +91 11 2335 1617 or email us at email@example.com for more information.