Private Limited Company Registration — Process & Cost
Updated June 2026 · VerifiedWhat Is a Private Limited Company?
A private limited company is the most popular business structure in India. It offers limited liability to shareholders, perpetual succession, and the ability to raise equity funding. It is governed by the Companies Act, 2013 and regulated by the Ministry of Corporate Affairs (MCA).
What Are the Steps to Register a Private Limited Company via SPICe+?
- Obtain Digital Signature Certificate (DSC) — Required for all proposed directors. Apply online through a certifying authority; typically received within 1–2 days.
- Apply for Director Identification Number (DIN) — DIN is allotted as part of the SPICe+ form itself. Each director needs a unique DIN.
- Reserve a Company Name — Use Part-A of the SPICe+ form (RUN service) to check name availability and reserve your preferred name.
- Draft MOA and AOA — Memorandum of Association (MOA) defines the company’s objects; Articles of Association (AOA) define internal rules and regulations.
- File SPICe+ Part-B — Submit incorporation form with all details including directors, registered office address, capital structure, and attach documents.
- Receive Certificate of Incorporation (COI) — MCA issues the COI with CIN, PAN, and TAN. Company is now legally incorporated.
What Documents Are Required for Registration?
| Document | Details |
|---|---|
| Identity Proof (Directors) | PAN card (mandatory) + Aadhaar / Passport / Voter ID |
| Address Proof (Directors) | Bank statement / Electricity bill / Phone bill (not older than 2 months) |
| Passport-size Photos | Recent photos of all directors |
| Registered Office Proof | Rent agreement + NOC from landlord + utility bill |
| DSC of Directors | Class 3 Digital Signature Certificate |
| MOA & AOA | Drafted and digitally signed by subscribers |
How Long Does Private Limited Registration Take?
| Stage | Timeline |
|---|---|
| DSC Issuance | 1–2 days |
| Name Approval (RUN) | 1–3 days |
| SPICe+ Filing & Processing | 3–7 days |
| Certificate of Incorporation | 1–2 days after approval |
| Total | 7–14 working days |
What Is the Cost of Private Limited Company Registration?
| Component | Approximate Cost |
|---|---|
| DSC (2 directors) | ₹1,000–₹2,000 |
| Government Filing Fees | ₹2,000–₹5,000 |
| Stamp Duty (varies by state) | ₹1,000–₹5,000 |
| Professional Fees | ₹3,000–₹8,000 |
| Total Estimated | ₹7,000–₹15,000 |
What Are the Benefits of a Private Limited Company?
- Limited Liability — Personal assets of shareholders are protected.
- Separate Legal Entity — Company can own property, sue, and be sued in its own name.
- Easy Fundraising — Can issue shares to investors, attract venture capital and angel funding.
- Perpetual Succession — Company continues to exist regardless of changes in ownership.
- Credibility — Higher trust among banks, clients, and vendors compared to proprietorships.
- Tax Benefits — Corporate tax rate of 22% (plus cess) under concessional regime; eligible for various deductions.
Frequently Asked Questions
What is the minimum capital required to register a private limited company?
There is no minimum capital requirement since 2015. You can start with any authorized capital, though ₹1,00,000 is commonly chosen. Government fees depend on the authorized capital declared.
Can a single person register a private limited company?
No. A private limited company requires a minimum of 2 directors and 2 shareholders. If you want a single-member entity, consider registering a One Person Company (OPC).
Can NRIs or foreign nationals be directors in an Indian private limited company?
Yes. NRIs and foreign nationals can be directors. However, at least one director must be an Indian resident (stayed in India for at least 182 days in the previous calendar year). Foreign directors need a valid passport and address proof.
What is the difference between SPICe+ and the old incorporation process?
SPICe+ is an integrated web form that combines name reservation, incorporation, DIN allotment, PAN, TAN, GSTN, EPFO, ESIC, and bank account opening — all in one single application. The old process required separate applications for each.
What compliances must a private limited company follow after incorporation?
Annual compliances include filing Annual Return (MGT-7), Financial Statements (AOC-4), income tax return, GST returns (if applicable), conducting board meetings (minimum 4 per year), and annual general meeting within 6 months of financial year end.
Private Limited Company Registration Near You
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