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Requirements for Private Company
December 17, 2018 / Company Registration in India

Requirements for Private Company?

Company is a a legal entity, allowed by company law in India, it permits a group of people, as shareholders (real owners), to apply to the Registrar of Companies for an independent business entity to be created, which can then focus on pursuing set of business goals and projects, and empowered with legal rights likeĀ individuals, such as to sue and be sued, own property, hire employees or loan and borrow money.

Incorporation / Formation of company involve a number of steps. We have tried to simplify the procedure to the maximum extent possible.

Minimum Requirement of a Private Company are as follows:
  1. Minimum 2 Shareholders
  2. Minimum 2 Directors (The directors and shareholders can be same person)
  3. Minimum Authorised Share Capital shall be Rs. 100,000 (INR One Lac)
  4. DSC (Digital Signature Certificate) for all the Directors (for applying of DIN)
  5. DIN (Director Identification Number) for all the Directors
  6. At least 1 of the Directors shall be an Indian Resident

Considering above minimum requirements interested business partners can form Private Company by appointing themselves as Directors as well as shareholders in company registration process. In simple words shareholders and Directors can be same person in company registration process.

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