One Person Company Registration

While both offer limited liability protection, private limited companies provide greater credibility and easier capital raising opportunities, but have stricter compliance requirements. LLPs have simpler compliance needs but may face limitations in securing institutional funding.

No, a minimum of two directors is mandatory for private limited company incorporation, with at least one being a resident Indian citizen.

Under the current system, DIN is obtained as part of the incorporation process through the SPICe+ form. You don’t need to apply for DIN separately before starting the incorporation process. The DIN is allotted simultaneously with company registration.

With complete documentation and proper application, a private limited company can typically be registered within 7-14 working days. The timeline may vary based on government processing time, documentation accuracy, and whether any objections arise during name approval.

Non-compliance can result in penalties ranging from ₹10,000 to ₹5,00,000, potential disqualification of directors, and restrictions on business operations or future filings.

Yes, foreign nationals can be directors and shareholders in Indian private limited companies. However, at least one director must be a resident Indian (resident in India for at least 182 days in the previous calendar year). Foreign investment may also require compliance with FEMA regulations.

Registration remains valid perpetually unless the company is formally dissolved, becomes dormant, or faces regulatory strike-off due to non-compliance.

The MOA defines the company’s relationship with external stakeholders and outlines objectives, powers, and liability limits. The AOA governs internal regulations, including management structure, shareholder rights, and operational rules. Both are mandatory founding documents.

 Yes, if you wish to be the sole owner, an OPC might be suitable as it requires only one director and one member. However, OPCs have limitations when it comes to expansion, raising capital, and foreign investment compared to private limited companies. OPCs can be converted to private limited companies when needed.

If a company fails to commence business or make a significant accounting transaction within one year of incorporation, it must file a declaration to that effect. If a company remains inactive for two consecutive financial years, the Registrar may initiate the process to declare it as “dormant” or even strike it off.

Yes, a single private limited company can operate multiple businesses, provided all activities are mentioned in the company’s MOA under the “Objects Clause.” Many entrepreneurs prefer creating separate entities for distinct business verticals for regulatory clarity, accounting transparency, and effective risk management.

GST registration becomes mandatory if your turnover exceeds ₹20 lakhs (₹10 lakhs for special category states) or if you engage in interstate supply of goods. However, many businesses register for GST immediately after incorporation to claim input tax credits and enhance business credibility.

Yes, an individual can serve as a director in multiple private limited companies simultaneously. However, a person is not permitted to serve as a director in more than 20 companies simultaneously, with a maximum of 10 being public companies.