Private Limited Company Registration in Mumbai

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Private Limited Company Registration In Mumbai

A company is an association of persons who share a common goal. A Private Limited Company is a corporate legal entity. It is one of the most popular and easy to form and privately held small business entity. The word 'Private' denotes that a Private Limited Company cannot accept the deposits from the Public against its shares and the word 'Limited' denotes that the liability of the shareholders and directors is limited.

This form of organization limits owner liability to their shares, limits the number of shareholders and restricts shareholders from publicly trading shares. It has a minimum of two members and a maximum of 200 members. It is governed by the Companies Act, 2013, Ministry of Corporate Affairs, and the Companies Incorporation Rules, 2014.

Privately limited company registration in Mumbai can be done with a minimum of two shareholders and two directors. A shareholder can be a natural person or a corporate legal entity, while the director of the Private Limited Company shall only be a natural person. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.

Private limited company registration in India is a crucial part. Registration provides an asset of advantages to the company.There are certain characteristics of a Private Limited Company which include limited liability, perpetual succession, corporate legal entity, trustworthiness, capital funding and raising, easy transferability, etc. A privately limited form of organization is best suited for start-ups and growing businesses.

Mumbai is known as the financial capital of the country as it houses some of the most important financial institutes of National importance like the Reserve Bank, National Stock Exchange, Bombay Stock exchange, SEBI, etc. Apart from this, commercialization in Mumbai made it the largest city of the nation. The city of dreams has indeed fulfilled dreams of millions by providing numerous employment opportunities in the field of commerce, art, education and especially in the entertainment sector. With advancement in technology, the entertainment sector has really prospered, as a result of which provided enormous employment opportunities. Register a Private Ltd company from Mumbai with Company Vakil.


Reasons To Register A Private Limited Company In Mumbai

  • Credibility:  Private Limited Company Registration in Mumbai facilitates the credibility of the business. Nowadays, customers, vendors, and investors look for credibility in the business entity before dealing. It creates a professional image and boosts the business value. Most importantly, registration ensures brand uniqueness and also eliminates duplication in the market.
  • A Private Limited Company has more credibility than a sole proprietorship or a partnership firm. The registration process aids in authenticating the existence of the business, thus improving the credibility of the company.
  • Convertibility: A registered Private Limited Company can convert its structure into a Public Limited Company. This helps the company to have a broader access to the market.
  • Protection of Personal Assets: Registering the business as a Private limited company allows limited liability. In the case of a wind-up, only the assets of the business can be taken away by the creditors. They cannot touch the personal assets of the members.
  • Funding: For any new business enterprise, funding is a very crucial aspect of establishing, maintaining and growing a business. For a business to grow quickly, it needs to have all types of funding which can be made available. Private Limited Company which is registered attracts more investors as the registration process authenticates the existence of the business.

Process For Private Limited Company Registration In Mumbai

The process for private limited company registration in Mumbai is a simple 4 stage process. The following stages are involved in the process of registration:

·        Obtain Digital Signature Certificate (DSC)

The first and foremost step involves the procuring of the digital signature certificate which is nothing but e-signature certificate which is issued by the Certifying Authority in token form and is valid for 1 or 2 years. All the proposed directors of the company are required to apply for the digital signature i.e. DSC.

·        Obtain Director Identification Number (DIN)

A registered Private Limited Company can convert its structure into a Public Limited Company. This helps the company to have a broader access to the market. Directors Identification number is a unique eight-digit number which is a mandatory requirement for all the directors of the company. DIN is allowed to every proposed director of the company by Ministry of Corporate Affairs (MCA) with lifetime validity, which is an important requirement to be appointed as director.

·        Reservation and Approval of Name

Once the DIN and DSC of the directors are obtained, a list of 1 to 6 proposed names of the company is submitted to MCA for approval. Some of the considerations before selecting the names are: -

1.     The name should be easy to spell and remember;

2.     The name shall be able to provide a distinct identity to the company; It should be short & simple;

3.     The name should not contain any word as opposed to public policy or prohibited;

4.     Once the application made is approved, the registrar shall reserve the same name for a period of 60 days.

·        Certificate of Incorporation

After the stage of Name Approval, a Memorandum of association and Articles of association for the company is drafted. Both MoA and AoA are charter documents for a Private Limited Company. All the necessary required documents are needed to be submitted with the prescribed e-form SPICE 32 along with the AOA, MOA and subscription statement. Once Registrar of Companies verifies all the documents and they are approved by the government, the certificate of incorporation is emailed to the applicant by the Registrar under his seal and signature. Date of company incorporation as well as the Permanent Account Number (PAN) of the company, are mentioned in the Certificate of Incorporation. The applicant is now ready to start his/her business!


Minimum Requirements For Company Registration In Mumbai


A minimum of 2 Shareholders and 2 Directors are required for the registration, where directors and shareholders can be the same.

1.     Minimum 2 Persons & Maximum 200 Persons.

2.     Minimum Authorised Share Capital Rs. 100,000 (INR One Lac).

3.     Proper documents.

4.     Unique name.

5.     Memorandum of Association and Articles of Association.

6.     Words “Private Limited” to be added as a suffix to the name mandatorily.


Advantages & Benefits Of Private Limited Company

1.     Easy Formation

Formation of a Private Limited Company requires a minimum of 2 members thus making the formation flexible.

2.     Flexible Management

A Private Limited Company apart from being easy to form is easy to register, manage and run. The registration process takes around 7 to 10 days and a company is ready to do its business. It offers the flexibility of a partnership firm and the advantages of a Public Ltd Company.

3.     Limited Liability

The liability of each member or shareholders is limited. This means that, as a shareholder, he will be liable to pay for company’s liability only to the extent of the contribution made by him.

4.     Distinct Legal Entity

A Private Limited Company is a legal entity and artificial person established under the Companies Act. This means that the Company is responsible for the management of its assets and liabilities, debtors and creditors. A member (Shareholders/Directors) of a company has no personal liability towards the creditors of a company for the company’s debts. Members are only liable to the company.

5. Perpetual Succession

As the company is a separate legal entity it is considered to exist even in the case of death, insolvency, the bankruptcy of any of its members. This is called a perpetual succession of the company. The life of the company keeps on existing forever.

6. Expansion and Convertibility

Expansion of the company has a higher scope because it is easy to raise capital from the financial institutes. The Private Limited Company has an option through which they can be converted into various other forms of business as well; it can be converted into a Public Limited Company, Nidhi Company, etc.

7. Dissolution

As compared to Public Limited Company, Private Limited Company is easy to wind up and dissolve.


Documents Required For Pvt. Ltd. Company Registration In Mumbai

All the Documents for privately limited company registration are required to be in scanned form; you can attach the document in the form after payment or email it to us on Feel free to get in touch for any query.

  • Passport size photograph of the applicant
  • Self-attested Address proof of the applicant
  • Self-attested PAN card of the applicant
  • Copy of ownership deed or sale deed (if you own the premises)
  • Copy of latest utility bills, such as electricity bill or telephone bill as proof of registered office. (Not older than 2 months)
  • Copy of rent agreement with No Objection Certificate (NOC) from the landlord (if office premise is rented).
  • Affidavits for non- acceptance.
  • No Objection Certificate (NOC), if there is a change in the original subscribers of MOA. Subscriber Sheets of MoA and the AoA.
  • Proof of Nationality which is needed if the subscriber is a foreign national.

TIME TAKEN in registration process

1 day


1 day


5 to 7 days


5 to 7 days


Frequently Asked Questions


1.     Do I physically need to visit your Office or the whole process can be done Online?

No office/physical Visits are required, it’s a 100% Online Process, and all the necessary Documents will be exchanged through email.


2.     How many Shareholders can be there in a Pvt. Ltd. Co.?

The Number of shareholders required for Incorporation of the Pvt Ltd. Co. is at least 2 and almost 200.


3.     Who can be a Director of a Pvt. Ltd Co.?

Any individual beyond the age of 18 years can be a Director of a Company. NRI’s & Foreign Nationals can also start and manage a Private Limited Company as there is no restriction on Citizenship or Residential status.


4.     How many Directors are required to commence the Pvt. Ltd Co.?

Minimum 2 and Maximum 15 Directors are required to incorporate a private ltd. Company.


5.     Can an already employed person be a Director of a Company?

Yes, you can become a Company’s Director if the employment contract allows you to do so. There is no legal limitation in this regard.


6.     What is meant by Authorized Capital and Paid-Up Capital?

Authorized capital is the maximum amount of equity share that can be issued by a Pvt. Ltd. Co. and paid UP Capital is the total amount of shares issued to the Shareholders. Authorized Capital can be raised anytime after commencement of a Company to issue more shares to the Shareholders.


7.     What is a DSC i.e. a Digital Signature Certificate?

DSC is considered an identity of the director. It’s an electronically encrypted signature unique to a particular person and has been made mandatory by MCA for all the Directors of a Company.


8.     Why Should a Start-up Choose a Pvt. Ltd Co.?

Pvt Ltd. Co. is Considered as the best option for any Start-up because of the following Reasons: -

1. It shows a start-up’s credibility and a long-term business goal.

2. Limited liability i.e. it is limited to the value of shares allotted.

3. Minimum 2 directors/shareholders are required to incorporate a Pvt. Ltd. Co.

4. It is majorly a pre – requisite for getting funding.

5. Can be converted into a public Limited as it grows.

6. Limited annual compliance.