Private Limited Company Registration in Chennai

Private Limited Companies are the most popular business structure in Chennai due to their limited liability, credibility, and growth potential. Registering a Private Limited Company in Chennai is simple and can be done online through the Ministry of Corporate Affairs (MCA) portal.

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Private Limited Company Registration in Chennai

Private Limited Companies are the most popular business structure in Chennai due to their limited liability, credibility, and growth potential. Registering a Private Limited Company in Chennai is simple and can be done online through the Ministry of Corporate Affairs (MCA) portal.

What is a Private Limited Company?

As per Section 2(68) of the Companies Act, 2013, a private limited company is a kind of company that has a minimum share capital that restricts the right to transfer its shares. You only need a minimum of two shareholders to incorporate a Private Limited Company, and the maximum number of shareholders in a Private Limited Company is restricted to 200.:

Why Register a Private Limited Company in Chennai?

Registering a Private Limited Company in Chennai has several benefits:

Limited Liability: Protects shareholders’ personal assets. You are only liable up to the value of your investment.
Credibility: Being registered increases your business’s trustworthiness with customers, partners, and investors.
Perpetual Succession: The company continues to exist even if shareholders or directors change.
Easier Fundraising: You can raise capital through equity or loans and enhance your business’s growth opportunities.
Compliance with Law: Registered businesses in India can enjoy the benefits of a distinct legal entity.

Eligibility for Private Limited Company Registration

Shareholders: Minimum of 2 shareholders, maximum of 200.
Directors: Minimum of 2 directors (can be the same as shareholders).
Capital Requirements:
- Authorized Capital: ₹1 Lakh
- Paid-up Capital: ₹10,000

Checklist for Private Limited Company Registration in Chennai

Here is a checklist drafted for your convenience to ensure that your Private Limited Company is registered successfully:

Shareholders: Make sure that there are at least 2 required (max 200)
Directors: At least 2 (can be the same as shareholders)
Attach Director Identification Number (DIN): The DIN is allotted by the Central Government of India, and the director needs to file a DIR-3 application through the SPICe e-form.
Digital Signature Certificate (DSC): The DSC is issued by the officer of the Controller of Certifying Authorities. It is applied online and is required for all online filings
Company Name: Make sure the company name is unique. Check the name availability at the MCA portal and add“Private Limited” at the end.
Registered Office Address Proof: A lease agreement or NOC from the landlord is required. You can attach utility bills like electricity bills for two months.
Identity Proof of Directors & Shareholders: PAN, Aadhar, Passport, or Driving License
Address Proof of Directors & Shareholders: Utility bills, bank statements, or lease agreement
Memorandum and Articles of Association: Ensure they are well-drafted. Take the help of a professional to avoid any hassle.
Declaration and Affidavits: The declaration forms have to be signed correctly and do not forget to attest the affidavit by an authorised notary.

Documents Needed for Registration

You need to attach the following documents for registration of your Private Limited Company:

Identity Proof: PAN Card, Aadhar, Passport, or Driver’s License for all directors and shareholders.
Address Proof: Utility bill, bank statement, or lease agreement for office space.
Registered Office Proof: NOC from the landlord or rental agreement.
Director Identification Number (DIN) and Digital Signature Certificate (DSC) for all directors.

Step-by-Step Process for Registration

Obtain a Director Identification Number (DIN) and Digital Signature Certificate (DSC): This is required for all directors.
Choose a Company Name: Ensure the name is unique, not previously used by any other company, and complies with the rules of the Ministry of Corporate Affairs. The suffix “Private Limited” should be included.
Fill out the SPICe+ e-form: The form is available on the MCA portal and has two parts: one for name reservation and the other for Company incorporation, DIN allotment, PAN, TAN, etc.
Draft MOA and AOA: Once MCA has approved your company’s name, the next step is to draft the Memorandum of Association and Articles of Association for the Company.
Memorandum of Association (MoA): It defines the scope of work of the company and its main objectives. It is pertinent that a company cannot engage in any activity outside its scope as outlined in the MOA.
Articles of Association (AoA): It outlines the internal management of the company, including roles and responsibilities of directors and other officers of the company, including the decision-making process of the company, the shareholding rights, and rules and procedures regarding the issuance of shares.
File Incorporation Application: Submit the necessary documents (Memorandum & Articles of Association, Director details, NOC from the landlord, etc.) through the MCA portal.
Sign the Subscription Agreement: Directors subscribe to shares and sign the Memorandum and Articles of Association.
Get Certificate of Incorporation: Once approved, you will receive the Certificate of Incorporation, officially making your company a legal entity.

Benefits of Registering a Private Limited Company

Registering a Private Limited Company in Chennai has the following benefits:

Legal Entity: A Private Limited Company is a separate legal entity in the eyes of law. It is a juristic person in law, meaning that it can sue and be sued.
Perpetual Succession: As the Private Limited Company is a separate legal identity in the eyes of law, the company will operate even after the death or departure of any director or shareholder. The existence of the company is independent of its directors and its stakeholders.
Credibility: A registered Private Limited Company has a better reputation in the eyes of people, and it can attract potential investors.
Fundraising Opportunities: You can raise capital through equity in a registered Private Limited Company and use this funding to expand your business, making it easier to expand your business.

Why Choose Chennai Filings?

Affordable & Fast: We offer the most competitive prices with quick processing.
Expert Support: Our team ensures a smooth registration process with no delays.
Dedicated Service: We cater to each client individually, providing personalized assistance at every step.

If you’re ready to start your business in Chennai, contact Chennai Filings today for easy, hassle-free registration!

FAQ's

1. What is a Private Limited Company?

It is a company with limited liability for its shareholders and restrictions on transferring shares. It’s the most common type of business in Chennai.

2. How many directors are needed?

You need at least 2 directors to register a private limited company in Chennai.

3. What is the minimum capital required?

The authorized capital is ₹1 Lakh, and the paid-up capital is ₹10,000.

4. How long does the registration process take?

Usually, it takes 3-5 business days after submitting the application, assuming all documents are in order.

5. Can one person register a company?

No, you need a minimum of 2 shareholders and two directors, but you can have one person as both a director and shareholder.

6. What documents do I need for registration?

You need identity proof, address proof for directors and shareholders, a lease agreement or NOC for the office, and DSC/DIN for all directors.

7. What are the benefits of registering a Private Limited Company?

It limits your personal liability, allows easier fundraising, enhances business credibility, and ensures the company’s continuity even if shareholders or directors change.

8. Can I change the company’s name later?

Yes, with approval from the Ministry of Corporate Affairs, you can change the company name later.

9. Do I need to hire a professional for registration?

Once the registration is complete, you’ll receive a Certificate of Incorporation, and your company becomes a separate legal entity, ready to do business.

10. What happens after registration?

While you can handle it yourself, hiring professionals ensures the process is smoother and faster, especially with all the paperwork involved.