Get clear answers to frequently asked questions about proprietorship setup, benefits, legal formalities, and compliance—so you can start your business in India with clarity and confidence.
Starting a business in India often involves registering as a Private Limited Company, which is a preferred structure due to its flexibility, credibility, and limited liability protection for shareholders. Unlike an LLP where partners manage operations directly, a Private Limited Company maintains a clear separation between ownership and management.
India Company Setup provides affordable and efficient solutions for online company registration in India. We take care of all legal procedures, ensuring your company complies with the Ministry of Corporate Affairs (MCA) guidelines throughout the registration process.
A Private Limited Company is a privately managed business entity recognized for offering limited liability and a separate legal identity. It is one of the most popular business structures in India due to its scalability, legal protection, and ease of ownership transfer (within limits). Here are some of its key features:
1. Limited Liability: Shareholders are responsible only up to the value of their shares.
2. Separate Legal Entity: The company can own assets, incur liabilities, and engage in legal proceedings under its name.
3. Minimum Requirements: Must have at least two shareholders and two directors (with at least one being an Indian resident).
4. Share Capital: Requires a minimum paid-up capital of ₹1 lakh.
5. Name Format: Must end with “Private Limited.”
6. Restrictions on Share Transfers: Transfers require Board approval or must follow the Articles of Association.
7. No Public Offerings: Cannot raise funds from the public through shares or debentures.
8. Mandatory Compliance: Includes annual filings, maintaining records, and conducting meetings.
Depending on liability and formation goals, entrepreneurs may choose among:
1. Company Limited by Shares: Liability restricted to unpaid share capital.
2. Company Limited by Guarantee: Members commit a fixed amount to contribute in case of winding up.
3. Unlimited Company: Members hold full liability, but the entity remains legally distinct from them.
1. Liability Protection: Safeguards personal assets from company liabilities.
2. Independent Legal Identity: Enables ownership of assets and contracts in the company’s name.
3. Continuity: The business persists despite changes in ownership.
4. Easier Investment Access: Simplifies raising funds through shares.
5. Tax Advantages: May qualify for tax incentives.
6. Market Credibility: The “Pvt. Ltd.” tag enhances trust among clients and investors.
1. Directors & Shareholders: At least two directors and a maximum of 200 shareholders. One director must be an Indian resident with a valid Director Identification Number (DIN).
2. Company Name: Should reflect the business activity and comply with MCA norms.
3. Registered Office: Must declare a physical address for the company where official records will be maintained.
1. Digital Signature Certificate (DSC): Mandatory for directors and subscribers.
2. Director Identification Number (DIN): Required for company directors.
3. Name Reservation (SPICe+ Part A): Propose two name options aligned with business activities.
4. Company Details Submission (SPICe+ Part B): Include information on capital, office address, and directors.
5. Incorporation Forms (MOA & AOA): Draft and digitally sign the company’s founding documents.
6. AGILE-PRO-S Filing: For GST, EPFO, ESIC, bank account, and other state-specific registrations.
After successful processing, the Ministry of Corporate Affairs will issue the Certificate of Incorporation (COI) containing your CIN, PAN, and TAN.
To proceed with Private Limited registration online, you will need:
1. PAN/ID Proof of All Directors and Shareholders.
2. Address Proof: Such as passport, voter ID, driving license, or Aadhaar.
3. Residential Proof: Latest utility bills not older than 3 months or bank statements for Last six months.
4. Passport-Size Photographs with a white background.
5. For Foreign Nationals/NRIs: Appostiled / Notarised Passport and proof of address (bank statement, license, government ID, etc.) along with MOA duly Appostiled / Notarised in the country of residence.
6. Proof of Registered Office Address: Rent agreement, NOC from landlord, and recent utility bill.
Some compliances relevant for a Private Limited Company are listed below:
1. Income Tax Filing: The Company will have to mandatorily file an Income tax return every year.
2. GST Return Filing: If the Company has GST registration, GST return must be filed every month and quarter as per the scheme under which the business is registered.
3. TDS Returns: In case the Company is having employees or purchasing goods/services beyond a certain threshold – tax must be deducted at source and TDS returns must be filed every quarter.
4. Mandatory Audit under The Companies Act: It is mandatory for the Company to appoint an auditor and get its books of account audited from a Chartered Accountant.
5. Mandatory ROC Compliances: It is mandatory for every Company irrespective of the turnover to file statutory forms to ROC every year.
Once registered, a company must meet post-incorporation compliance like appointing auditors, maintaining statutory registers, holding board meetings, and filing regular returns with the ROC.
At India Company Setup, we deliver a complete suite of business services to help you start, grow, and manage your company with ease. From registration to regulatory compliance, our expert support ensures your business stays legally sound and financially organized.
Our expert bookkeeping ensures every transaction is correctly recorded, reducing compliance errors and giving you a clear picture of your company’s financial health — crucial for GST, Income Tax, and MCA filings.
Focus on growing your business while we manage your books. By outsourcing to us, you eliminate the burden of paperwork, reconciliations, and regulatory upkeep — saving you both time and effort.
We help you monitor income and expenses in real time, so you maintain a healthy cash position, make informed decisions, and avoid last-minute cash crunches or missed tax deadlines.
A Private Limited Company is a registered business entity with limited liability for its shareholders and a separate legal identity from its owners. It must have at least two directors and two shareholders, and cannot invite the public to invest in its shares.
Any individual, whether Indian or a foreign national, above 18 years of age, can become a director or shareholder in a Private Limited Company. At least one director must be an Indian resident.
The minimum paid-up capital requirement is ₹1 lakh. However, there is no mandatory capital infusion at the time of incorporation, and it can be increased later.
With all documents in order, India Company Setup can typically complete the registration process within 7 to 10 working days, depending on MCA processing times.
Yes, the entire registration process can be completed online, including document submission, e-signatures, and MCA filings.
Get clear answers to frequently asked questions about proprietorship setup, benefits, legal formalities, and compliance—so you can start your business in India with clarity and confidence.
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At India Company Setup, we simplify the process of starting your proprietorship. Our expert team ensures hassle-free registration, timely support, and personalized guidance to help you launch with confidence.
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