India: The FAQs Cover The Process Involved In Incorporating A Private Limited Company In India

Last Updated: 29 April 2019
Article by Obhan & Associates
  1. What is a private limited company? 

There are several different types of entities in India such as private limited company, public limited company, limited liability partnership, sole proprietorship etc.A private limited company refers to an entity which limits the liability of the owner to their respective shareholdings and restricts shareholders from publicly trading shares. 

  1. How many directors are required to incorporate a private limited company in India? 

A private limited company must have a minimum of 2 directors and can have a maximum of 15 directors. One of the Directors of a private limited company is mandatorily required to be an Indian citizen and an Indian resident. The other director(s) can be a foreign national. 

  1. How many shareholders are required to incorporate a private limited company in India? 

To incorporate a private limited company, a minimum of 2 shareholders are required. These shareholders could be natural persons or companies, including foreign companies. The maximum number of shareholders is 200.

  1. Can an individual person incorporate a company in India?

Yes, like several other countries such as China, Singapore, UK, Australia, and the USA, the Companies Act, 2013 has also introduced the concept of a One Person Company. 

  1. What is a One Person Company ("OPC")?

The Companies Act, 2013 defines a One Person Company as a company that has only one person as its member, i.e. a company that has only one shareholder.The sole member of the OPC is required to while registering the OPC, select a nominee who in the event of the subscriber's death or his incapacity to contract becomes the member of the company.Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC.

  1. How many directors does an OPC require?

OPCs need to have a minimum of one person (the member) as a director. They can have a maximum of 15 directors.

  1. What is the typical process to be followed to register a private limited company in India? 
  • Step 1: Reserve a name for the company;
  • Step 2: Apply for digital signature (DSC) for each of the director;
  • Step 3: Acquire an identification number (DIN) number for each director; and
  • Step 4: File the SPICe Form. 
  1. How does one reserve a name or how do I apply for a company name? Are there any considerations to be kept in mind while providing a name to the company? 

An applicant can pick up any suitable name for the company, provided that (i) the company cannot be registered with a name which is undesirable as per the Central Government; (ii) the name of the company has to end with 'Private Limited'; (iii) the name which is chosen for the company should not resemble or be identical to the name of another registered company.

One can reserve the name of its company via Reserve Unique Name form ("RUN"). 

  1. What is the procedure of availing services of RUN? 

One is required to create an account for oneself at the Ministry of Corporate Affairs ("MCA") portal.After creating an account, the applicant can avail the RUN services. The applicant can propose two names under this service. It is important to note that the name applied for will either be approved or rejected and that no resubmissions are allowed. A fee of Rupees One thousand will be levied for the submission of each form. 

  1. How long is the approved name valid for? 

An approved name is valid for a period of 20 days from the date of approval of such name.

  Is it mandatory to reserve a name in advance? 

No, it is not compulsory to reserve a name through the RUN service. The approval of a name can also be sought while filing the SPICe (INC-32) form.

One can apply for the proposed name through SPICe (INC-32) form on the MCA portal. Only one name can be applied for under this form. However, in case of rejection due to non-approval of the name, the applicant in this case get a second chance of refilling the same SPICe (INC-32) form without any further charges. 

  1. What is DSC? Is it required to file the SPICe (INC-32) and RUN? 

DSC refers to a Digital Signature Certificate. It must be obtained from a certifying agency which has been recognized by the government. Since the registration process is now online, all the forms require a valid DSC. The cost of obtaining DSC varies from each certifying agency.

DSC is required to file the SPICe (INC-32) form whereas the same is not required for filing RUN. 

  1. What is DIN? 

DIN is a unique Identification Number allotted to an individual who is appointed as a director of a company. Any new company is required to make an application for allotment of DIN through SPICe form at the time of its incorporation. 

  1. What is SPICe form? 

SPICe refers to a Simplified Proforma for Incorporating Company Electronically. SPICe helps incorporate a company with a single application for:

  • reservation of name;
  • application for allotment of DIN;
  • incorporation of a new company; and
  • allotment of PAN and Allotment of TAN. 

This Form helps incorporating a company quickly in India by integrating many of the steps into a single process. It has been introduced to do away with filing of various forms. 

  1. Are there are any other forms that are required to be filed along with the SPICe (INC-32) form? 

Along with SPICe (INC-32) form, the following forms are also required for the incorporation of a company:

  • e- Memorandum of Association ("E-MoA") in Form No. INC-33; and
  • e-Articles of Association ("E-AoA") in Form No. INC-34. 
  1. What is Memorandum of Association and Memorandum of Articles? Is it mandatory to use e-MoA and e-AoA? 

Memorandum of Association represents the charter of the company while Articles of Association refers to the internal rules and regulations of the company. These are required for the incorporation of a company and need to be filed with the MCA.

It is mandatory to use e-MoA and e-AoA only in the case of following:

  • individual subscribers are Indian nationals;
  • individual subscribers who are foreign nationals (in case they have valid DIN and DSC and have a proof of a valid business visa); and
  • non-individual subscribers based in India. 
  1. Is it mandatory to apply for PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) along with SPICe (INC-32) form? 

Yes, it is mandatory. The applicable fee for applying for both PAN and Tan is Rupees Sixty-Five each. 

  1. What general documents are required to register a private limited company? 
  • Affidavit and declaration by first subscriber(s) and director(s);
  • Proof of office address;
  • Copies of utility bills that are not older than two months;
  • Copy of approval in case the proposed name contains any word(s) or expression(s) which requires approval from central government;
  • If the proposed name is based on a registered trademark or is subject matter of an application pending for registration under the Trade Marks Act, then it is mandatory to attach the trademark registration certificate or trademark application copy;
  • NOC from the sole proprietor/ partners/other associates/ existing company;
  • Proof of identity and residential address of the subscribers (in the absence of DIN); and
  • Proof of identity and residential address of directors (in the absence of DIN).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions