A Guide to Private Limited Company Registration in Delhi

01 August 2023

As of April 2023, the latest data available on the Ministry of Corporate Affairs (MCA) website displays that there are over 13 lakhs (1.3 million) active private limited companies registered in India. This count has steadily increased over the years because of various government initiatives, which are meant to introduce the ease of doing business and entrepreneurship.

As a matter of fact, the Economic Survey 2021-22 released by the Ministry of Finance states that the number of new company registrations in India increased by 27.8% from 2019-20 to 2020-21, with a total of 4,89,000 companies being registered during the period.

This fact clearly indicates that the count of private limited companies registered in India has been on the rise. It is certainly a positive trend in the country's business environment and entrepreneurial ecosystem.

Introduction

A private limited company is a type of business structure that is privately held, run, and incorporated under the Companies Act, 2013. It is a separate legal entity from its owners and has limited liability, meaning the personal assets of the shareholders are protected in case of any financial losses or liabilities of the company.

In a private limited company, the ownership is limited to a maximum of 200 shareholders, and the shares cannot be traded publicly. The shareholders have limited liability and are only responsible for the amount of capital they have invested in the company.

To form a private limited company in Delhi, a minimum of two directors and two shareholders are required. The company must have a registered office address in Delhi and obtain all necessary licenses and permits required to operate legally in the city.

A private limited company in Delhi is a popular choice of business structure for small and medium-sized enterprises (SMEs) as it provides benefits such as limited liability protection, better access to funding, credibility in the market, and tax benefits.

Process of Registering a Private Limited Company

The process of registering a private limited company in Delhi can be a smooth journey if you follow these steps:

Step 1: Obtain Digital Signature Certificate (DSC)

The first step is to obtain a Digital Signature Certificate (DSC) for all the directors of the company. DSC is a digital signature that is used to sign documents electronically.

Step 2: Apply for Director Identification Number (DIN)

The next step is to apply for Director Identification Number (DIN) for all the directors of the company. DIN is a unique identification number allotted to each director.

Step 3: Name Reservation

The next step is to reserve a unique name for the company by filing an application in Form SPICe+ on the MCA (Ministry of Corporate Affairs) portal. The name should comply with the naming guidelines provided by the MCA.

Step 4: Prepare the Memorandum of Association (MoA) and Articles of Association (AoA)

The MoA and AoA are the legal documents that define the objectives, scope, and rules and regulations of the company. These documents must be prepared and signed by all the directors and shareholders of the company.

Step 5: File SPICe+ Form

After obtaining the DSC, DIN, and name reservation, file the SPICe+ Form on the MCA portal along with the MoA and AoA, and other necessary documents such as address proof, PAN card, and ID proof of the directors and shareholders.

Step 6: Certificate of Incorporation

After successful verification of the documents, the Registrar of Companies (RoC) will issue a Certificate of Incorporation (CoI), which is the conclusive proof of the formation of the company.

Step 7: Obtain PAN and TAN

Once the CoI is issued, apply for PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) for the company.

Note that the above process can take around 10-15 days, and it is advisable to seek the guidance of a professional consultant or a chartered accountant to ensure that all legal formalities are complied with correctly.

Documents to Enclose and Fee Structure

The following documents are required for registering a private limited company in Delhi:

• Identity Proof and Address Proof of all Directors and Shareholders:
• PAN Card
• Passport
• Voter ID Card
• Driving License
• Aadhaar Card
• Any other Government issued ID proof
• Address proof for the registered office of the company:
• Ownership proof of the premises or
• Rent Agreement and a NOC from the owner
• Digital Signature Certificate (DSC) of all Directors
• Director Identification Number (DIN) of all Directors
• Board Resolution for Authorizing Directors to apply for DIN and DSC
• Memorandum of Association (MoA) and Articles of Association (AoA) of the company
• Declaration by the Directors and Shareholders stating that they are not disqualified under any law from being a Director or Shareholder of the Company

Payment of Fees

The fee for registering a private limited company depends on the authorized capital of the company. The fees can be paid online through the MCA portal.

It is advisable to consult a professional consultant or a chartered accountant for a detailed list of documents required for registering a private limited company in Delhi, as the list may vary based on the specific requirements of the company and the industry it operates in.

Conclusion

Hiring a private company registration consultant in Delhi can be beneficial as they have the necessary knowledge and expertise to guide you through the complex process of company registration, ensuring that all legal formalities are complied with correctly. They can also assist you in obtaining necessary licenses and registrations, such as GST, and help you understand the various compliance requirements. This can save you time and effort and ensure a smooth registration process.