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12 Things About Forming Private Limited Company in India

certificate of incorporation

Here are the basic points every promoter/entrepreneur should know when forming a private limited company in India:

  1. Go for a Private Limited company with Rs 1 Lakh Authorized Capital only. To know more about different types of company entities and their pros and cons, click here
  2. Minimum 2 director’s and/or shareholder’s name you should have, if you have a team then make one of them a director and if you are alone then choose a senior mentor/friend as director if still have a doubt then go for a family member
  3. Every director should have DIN (Director Identification No.) and at least one director should have DSC (Digital Signature Certificate) to start the process of company incorporation
  4. You should have 4-5 proposed company names, one of them will be approved on availability and priority basis 
  5. MOA (Memorandum of Association) – it is a document that describes objectives of a company in detail, Authorized Capital and Subscribers to the capital
  6. AOA (Articles of Association) – it is a document that describes the rules and regulations by which company will be operating
  7. Company objects should be clear and as much wide to cover future proposed activities also otherwise change in MOA would be required in future 
  8. Company’s registered address must be a permanent address – so promoter should carefully select this Ex: A promoter started company from college/incubation centre and chose this centre as registered address of the company. Soon he left college and went to metro city/home town etc that is generally in other state; now changing company registered address is very tedious and costly task because jurisdiction of company has changed, two states involved
  9. Keep all original documents (MOA, AOA, Certificate of Incorporation etc.) with you or a trusted person
  10. Reasonable cost to get register a company is Rs 15k-17k if capital is Rs 1 lakh
  11. Normally will take 2-4 weeks for incorporation depending on availability of documents and approval from ROC
  12. Hire a CA/CS for Company formation and hire only CA for Finance/ Tax/Audit matters


DISCLAIMER: Information and Opinion provided in this article are solely that of the author and are not endorsed by



Kapil Sehgal – Kapil is a proprietor at Kapil Sehgal & Associates Chartered Accountants. He is a Director at, founder at Dotcom Ventures, and has been a Research Analyst at CRISIL.

He can be reached at +91 98960 38018 and +91 99107 58088. His email id:



Kapil can help startups and SMEs with:

- Company / LLP Incorporation,

- Accounting / Bookkeeping,

- Service Tax / VAT / Income Tax / TDS Statutory Audit / Income Tax Audit,

- ROC Filings, SME Funding Business / Share Valuation with Certificate.

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Article Name
12 Things About Forming Private Limited Company in India
This article highlights 12 points one should know when starting a private limited company in India. It covers the legal formalities one needs to complete.