Saturday, 12 August 2017

How to Establish Private Limited Company in India?


Apply at to Establish Private Limited Company in India. It costs INR 50, 000

Steps to Establish a Private Limited Company in India-
Apply for Directors Identification Number and Digital Signatures.

Selection of type of the company.

Selection of name for the proposed company.

Drafting of Memorandum and Articles of Association. Stamping, digitally signing and e-filing of various documents with the Registrar.
Payment of Fees.

Obtaining Certificate of Incorporation.

Preparation and filing of Prospectus/Statement in lieu of Prospectus and e-Form 19/20 (in case of public companies) for obtaining the certificate of commencement of business.

Obtaining Certificate of Commencement of business (in case of public limited companies).

Private Limited Company is the most popular form of business entity among foreign investors, including USA investors, to form a subsidiary, a joint venture or 100% owned company in India.

To incorporate a private limited company, a minimum of two shareholders are required. A minimum of two shareholders and a maximum of up to 200 shareholders are allowed in a private limited company.  The shareholders could be natural persons or companies, including foreign companies.

A private limited company must have a minimum of two Directors and can have up to a maximum of fifteen Directors.
The Director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency. Therefore, foreign nationals can be directors in a Indian Private Limited Company.

Minimum authorized capital of Indian Rupees 100,000 (US $ 2250 approximately) is required to form a private company in India. There is no upper limit.

Identity proof and address proof is mandatory for all the proposed Directors of the Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof. Memorandum of Association and Articles of Association and other documents are prepared by us.

Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of up to 20 years.

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