Private Limited Company

Private Limited Company Registration in India

A company whose shares may not be offered to the public for sale and which operates under legal requirements less strict than those for a public company. A private company is a firm held under private ownership. Private companies may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an initial public offering (IPO).

Prerequisites to incorporate a Private Limited Company-

  • The number of members must be between 2 - 200.
  • There must be at least two directors and two shareholders.
  • Each director must have a Directors Identification Number (DIN).
  • PAN card copy of directors/shareholders. Passport copy for NRI subscribers.

The company needs to provide address proof for incorporation. But the Ministry of Corporate Affairs (MCA) allows a residential address to be used as the company’s registered address. Thus any address can be provided as the registered address.

SPICe INC 32 is very similar to INC 29, which was being used to incorporate companies but the significant difference between the two forms is that in the new SPICe INC Form 32, there is a provision for entering name approval that was already obtained by the applicant, whereas in the form INC 29, there was no provision for entering a previously obtained name approval leading to chances for submission and rejection. A maximum of three directors can use the integrated form of SPICe INC 32 for filing application for allotment of DIN.