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Overview

A private company is a company which is owned by non-governmental organisations or a relatively small number of shareholders or members of a company. Usually, a private company does not offer or trade its shares to the general public on the stock exchanges, but rather the private stock of the company is owned and traded.

A private limited company in India is governed under the Ministry of corporate affairs (MCA). Registering a private limited company in India is easy, and it can be done completely online with Tax Salah. To start a private limited company in India a minimum of two people are required to act as directors and shareholders.


Benefits of Private Limited Company

  • No Minimum Capital
  • No minimum capital is required to form a Private Limited Company.

  • Separate Legal Entity
  • A Private Limited Company is a separate legal identity in the court of the law, meaning assets and liabilities of the business are not the same as the assets and liabilities of the Directors. Both are counted as different. A Private Limited Company separates Management and Ownership and thus, managers are responsible for the company's success and are also answerable for the company's loss.

  • Limited Liability
  • If the company undergoes financial distress because of whatsoever reasons, the personal assets of members will not be used to pay the debts of the Company as the liability of the person is limited.

  • Fund Raising
  • A Private Limited Company in India is the only form of business except for Public Limited Companies that can raise funds from Venture Capitalists or Angel investors.

  • Free & Easy transfer of shares
  • Shares of a company limited by shares are transferable by a shareholder to any other person. The transfer is easy as compared to the transfer of an interest in a business run as a proprietary concern or a partnership. Filing and signing a share transfer form and handing over the buyer of the shares along with a share certificate can easily transfer shares.

  • Uninterrupted existence
  • A Private Limited Company has 'Perpetual Succession', which is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.

  • FDI Allowed
  • In a Private Limited Company, 100% Foreign Direct Investment is allowed that means any foreign entity or foreign person can directly invest in a Private Limited Company.

  • Builds Credibility
  • The particulars of the company are available on a public database. This improves the credibility of the company as it makes it easy to authenticate the details.

Documents Required For Private Company Incorporation

Listed below are the documents accepted by the MCA for the online company registration process.

Identity and Address Proof

  • Scanned copy of PAN card or Passport for foreign nationals & NRIs
  • Scanned copy of voter ID/passport/driving licence
  • Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
  • Scanned passport-sized photograph with specimen signature
  • Registered Office Proof

  • Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
  • Scanned copy of notarized rental agreement
  • Scanned copy of no-objection certificate from the property owner (For rented property)
  • Scanned copy of sale deed/property deed (For owned property)
  • *Note : Your registered office need not be a commercial space, it can be your residence too.

How to Register a company online

Company registration in India benefits startups since it offers them an advantage over those who have not registered. The process of registering your company is complex and involves many compliances. However, with Tax Salah it is easy to incorporate a company as our professionals can help you with every step of private limited company registration process.

  • Step 1: Obtain DSC
  • Step 2: Apply for the DIN
  • Step 3: Application for the name availability
  • Step 4: Submission of MoA and AoA to register a private limited company
  • Step 5: Apply for the PAN and TAN of the company
  • Step 6: RoC issues a certificate of incorporation with a PAN and TAN

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Frequently Asked Questions

The registrar of companies (RoC) across India expect applicants to follow a few naming guidelines. Some of them are subjective, which means that approval can depend on the opinion of the officer handling your application. However, the more closely you follow the rules listed below, the better your chances of approval. First, however, do ensure that your name is available.

If you have all the documents in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar.

No, new company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.

You can use (TM) mark as soon as the Trademark application is filed and you receive acknowledgement receipt. (R) mark can be used once trademark is registered.

Trademark, the word is a combination of TRADE and MARK, means a mark which is used in trade, commerce or business.If you close down your business, in legal sense, if you do not carry on any business under your trademark then it will cease to exist. However in practical sense the trademark registry will continue to show your trademark alive unless it is withdrawn by you or it expires after 10 years of registration, due to non-renewal.

Every 10 years the trademark to be renewed, so that you can use your trademark for indefinite time.

An entity liable to be registered under GST should apply for registration within 30 days of meeting the criteria. Casual taxable persons and non-resident taxable persons are required to be registered under GST prior to commencing business.

The primary authorized signatory is the person who is primarily responsible to undertake tasks on the GST portal on behalf of the taxpayer. It could be the promotion of the business or any other trustworthy person nominated by the promoters of the business.

Yes, PAN is mandatory for obtaining GST registration. In the case of proprietorship, the PAN of the proprietor can be used. In the case of LLP or Company or Trust or other types of a legal entity, PAN must first be obtained for the entity. However, PAN is not mandatory for the GST registration of foreigners and foreign companies. For non-resident taxable persons, GSTIN with a fixed expiry date will be provided based on the other documents provided to prove existence.

Yes, you need to file. There is a difference between filing income tax return and deducting TDS. You file a tax return as a proof of the payment of all the taxes due. The IT return would also help you while applying for a visa or a loan.

You can make the payment directly to the Government on the official website of the IT Department. You may pay through net banking, along with Challan 280.

Yes, You can file delayed IT returns for all the years lapsed so far.