Private Limited Company Registration in Hyderabad

What is Private Limited Company Registration?

Private Limited Company registration refers to the process of legally establishing a private limited company under the relevant company laws in a jurisdiction, such as the Companies Act in India. 

A private limited company is a type of business structure that limits the liability of its owners (shareholders) and restricts the transferability of shares. This structure is commonly chosen by entrepreneurs and small to medium-sized businesses due to its advantages in terms of liability protection, credibility, and access to funding.

Key Features of a Private Limited Company are:

1. A minimum of two shareholders and two directors is required to register a private limited company in India. One of the directors must be a resident of India.
2. A private limited company is recognised as a separate legal entity from its owners.
3. Shareholders' liability is limited to the amount they have invested in the company.

Who Can Register a Private Limited Company in Hyderabad?

Anyone who meets certain eligibility criteria can register a private limited company. Here is a detailed overview of private limited company registration eligibility criteria:

1. Any individual above the age of 18 years can become a director or shareholder of a private limited company.
   

2. At least one of the directors must be an Indian citizen. 
   

3. The individual must be a natural person (not a company or an artificial entity).
   

4. Certain individuals are disqualified from being directors, including:
   

   • Individuals who are of unsound mind, declared by a competent authority.
     

   • Individuals who have been declared insolvent and whose insolvency has not been discharged.
     

   • Individuals convicted of any offence involving moral turpitude or any other offence punishable with imprisonment for more than six months.
     

   • Individuals who are already disqualified under any provision of the Companies Act.
     

Benefits of Registering a Private Limited Company in Hyderabad

Registering a private limited company in Hyderabad offers numerous benefits that can significantly enhance your business prospects and operational efficiency. Here are some key advantages of a registered company:

• Limited Liability Protection: Shareholders' liability is limited to the extent of their investment in the company. Personal assets are generally protected from business debts and liabilities, reducing financial risk for owners.
  

• Separate Legal Entity: A private limited company is recognised as a separate legal entity, distinct from its owners. 

• Enhanced Credibility: Being a registered entity enhances your business's credibility and trustworthiness among customers, suppliers and investors. 
  

• Ease of Raising Capital: A private limited company can attract investment more easily than unregistered businesses. It can issue shares to raise capital and may also qualify for loans from financial institutions.
  

• Perpetual Succession: The company continues to exist independently of changes in ownership or management. This continuity ensures stability and can facilitate long-term planning and investment.

• Tax Benefits: Private limited companies can benefit from various tax advantages, such as lower corporate tax rates compared to personal income tax. They may also qualify for deductions and exemptions under different tax laws.

• Access to Government Schemes: Registered private limited companies may be eligible for various government incentives, grants and schemes aimed at promoting entrepreneurship and innovation, especially in sectors like technology and manufacturing.
  

• Intellectual Property Protection: Registering a private limited company can facilitate the protection of intellectual property rights, such as trademarks and patents, enhancing the overall value of your business.
  

Documents Required for Registration of Private Limited Company in Hyderabad

Essential documentation to register a private limited company includes:

1. Identity and Address Proofs:

   • Identification documents such as passport, Aadhar card, voter ID, or driver's licence.
   • Proof of address using documents like utility bills or bank statements.

2. Proof of Registered Office:

   • Ownership documents like an electricity bill or corporation tax receipt in the owner's name for verification of the registered office.
   • If the directors do not own the office, a mandatory No Objection Certificate (NOC) from the owner is required.

3. Memorandum of Association (MoA) & Articles of Association (AoA):

   • The MoA serves as the foundation of the company and outlines its purpose and scope.
   • The AoA outlines the internal rules and regulations governing the company’s operations.

4. Declaration & Consent Forms for Proposed Directors:

   • Form DIR-2 (Consent to Act as Director): This is the written consent from the proposed directors agreeing to serve as a director of the company.
   • Form INC-9 (Declaration by Directors): A declaration from each proposed director stating they are not disqualified from becoming a director under the Companies Act, 2013.

Company Registration Process in Hyderabad

The company registration process in Hyderabad typically involves several steps, adhering to legal and regulatory requirements. 

Here is a general outline of the process for firm registration in Hyderabad, applicable to Private Limited Companies:

• Step 1: Obtain a Digital Signature Certificate (DSC)

  Obtain Digital Signature Certificates (DSCs) for all Directors/Partners/Shareholders.
  

• Step 2: Name Approval Process  using SPICe+ Part A

  Search for and reserve a unique company name using SPICe+ Part A. Submit it for MCA approval. 
  

• Step 3: Apply for Company Registration using SPICe+ Part B

  Upon approval of the chosen name, initiate the incorporation process by providing detailed information about the business structure, registered office, directors, shareholders and other essential details in the SPICe+ form.
  

• Step 4: Payment

  Pay the required registration fees and stamp duty.
  

• Step 5: Certificate of Incorporation

  Once verified and approved by the Registrar of Companies (RoC), you will receive a Certificate of Incorporation (COI), signifying a successful company registration.
  

• Step 6: Open a Bank Account

  After obtaining the CoI, PAN, and TAN, you can open a bank account in the name of the company to handle its financial transactions.
  

Selection of a Company Name in Hyderabad & Trademark Process

Before commencing the company registration process, it is recommended that a comprehensive company registration name check be conducted to ensure compliance with MCA guidelines for the chosen name and mark. This helps prevent potential conflicts and legal issues in the future.

Introducing our free search tool, “Company Name Search”, to find company name availability, trademarks, domain names, and social media handles associated with your business name in just one click!

Searching for a company name?

Check company name availability using our powerful name search tool.

After the company registration name availability search, the next step involves Trademark Registration, which grants exclusive rights to use your selected name or logo, create a distinctive identity, and safeguard against using similar marks by others.

GST Requirements for Business Registration in Hyderabad

Goods and Services Tax (GST) is a comprehensive and value-added tax imposed on the consumption of goods and services within the territorial boundaries of India. 

If the total turnover (Aggregate) caused by the supply of goods or services made by any business in the state of Telangana is ₹20 lakhs or more, then it is required to do a GST registration of the company.

Note: There might be certain exceptions to the turnover eligibility. 

To initiate the process of GST registration for a private limited company, follow these steps:

• Access the GST Portal.
• Choose the "Register Now" option.
• Complete the details in the "Part A" form.
• Proceed to "Part B," where you provide business information and upload essential documents such as PAN, Aadhar, business registration papers, bank statements and photographs of proprietors/partners/directors.
• Submit the application, which then undergoes a verification process.
• Upon approval, you will receive a GST registration certificate.

The GST Certificate includes a GSTIN, a 15-digit state-wise identifier for businesses. The first 2 digits of the GSTIN signify the GST code of the respective state/territory, with Hyderabad (Telangana) being represented by the code 36.

GST compliance in India requires businesses to adhere to various regulations set by the GST framework. This includes obtaining GST registration, filing regular GST returns, maintaining accurate records of sales and purchases and ensuring timely payment of GST dues. Businesses must also reconcile input tax credit claims and sales data, follow proper invoicing practices and comply with the applicable tax rates for different goods and services. 

Register Your Business Hassle-free with Razorpay Rize

Register your Business at just ₹1,499 + Govt. Fee

Register your business

Company Registration Authorities in Hyderabad

In Hyderabad, the registration of companies falls under the purview of various regulatory bodies and authorities. Here are the key authorities involved in company registration:

1. Ministry of Corporate Affairs (MCA)

   The Ministry of Corporate Affairs (MCA) is the governing body responsible for administering corporate affairs and governance, playing a crucial role in monitoring the operations of corporate entities and ensuring their compliance with statutory requirements.
   

   The official MCA website offers access to essential reports and enables users to register for services across diverse fields through its online portal- the MCA21 Portal.
   

2. Ministry of Micro, Small and Medium Enterprises

   This Government body in India is committed to fostering and advancing the growth of micro, small and medium-sized enterprises (MSMEs) within the nation.
   

   Although it is not mandatory, applying for MSME/ Udyam registration allows you to avail numerous benefits, including advantages in taxation, simplified business establishment procedures, access to credit facilities and eligibility for various financial incentives and loans.

   MSME-Development and Facilitation Office (MSME-DFO) also offers a wide range of services and schemes for the Micro, Small and Medium Industrial sectors in Telangana. 

3.  Registrar of Companies (RoC)

   The Registrar of Companies (RoC), functioning under the MCA, acts as a regulatory body with primary responsibilities, such as the approval of the registration of new companies and LLPs in India.
   

   Its role includes the supervision of incorporated entities to ensure compliance with legal protocols, including matters like the appointment and resignation of directors, auditors and company secretaries. Additionally, the RoC oversees the filing of annual returns, financial statements and other post-incorporation compliances.
   

   • ROC Hyderabad
     Email- roc.hyderabad@mca.gov.in  
     2^nd Floor, Corporate Bhawan, GSI Post,Nagole, Bandlaguda, Hyderabad- 500068
     

4. Registrar of Firms (ROF)

   The Registrar of Firms in Hyderabad is responsible for the registration and administration of partnership firms under the Indian Partnership Act of 1932. 
   

   The Department of Stamps & Registration, Government of Karnataka, offers a convenient online platform, allowing citizens to enter details and schedule appointments for partnership firm registrations. 
   

5. Government of Telangana

   The State Government of Telangana actively partners with different regulatory entities to formulate and implement industrial policies that play a pivotal role in the registration and growth of businesses.
   

   In Telangana, India, the key local government entities overseeing company registration and licensing processes are:
   

   • The Greater Hyderabad Municipal Corporation (GHMC) in Hyderabad is the municipal corporation responsible for issuing trade licences to run the listed business within the jurisdiction of the local body. Alongside Trade Licences, there may be some additional licences or permits that need to be obtained.
     

   • The Registration & Stamps Department in Telangana is responsible for overseeing the registration of various documents, including the registration of partnership firms, in the state.
     

     This Department utilises the MeeSeva portal to manage business registration, a process subsequently endorsed by the District Registrar. It also offers services like downloading the certificate, checking the status of the application, etc. 

   • As part of the Telangana Government, the Commercial Taxes Department has implemented a Citizens Charter to improve service delivery and uphold excellence in enforcing tax policies. This department oversees the administration of acts such as Goods and Services Tax (GST), Value Added Tax (VAT), Professional Tax and others.

6. Income Tax Department

   The Income Tax Department holds the responsibility of supervising matters related to income tax, including assessments, collections and various tax-related functions, such as the issuance of Permanent Account Numbers (PAN) and Tax Deduction and Collection Account Number (TAN).
   

   It ensures strict adherence to income tax regulations within the designated geographical area.
   

What Our Hyderabad Founders Say About Us

Types of Companies You Can Register in Hyderabad

In Hyderabad, much like the rest of India, various business structures can be registered, and the choice depends on factors such as the business's nature, scale of operations, ownership and liability considerations. 

The following are common types of companies that can be registered in Hyderabad:

1. Private Limited Company

   Privately owned and regulated under the Companies Act, the Private Limited Company is a favoured choice for startups and businesses.

   

   Register your Private Limited Company in just ₹1,499 + Govt. Fee

   Register your business

2. Limited Liability Partnership (LLP)

   Governed by the Limited Liability Act of 2008, an LLP provides limited liability and is often preferred by professionals and service providers.

   

   Register your Limited Liability Partnership in just ₹1,499 + Govt. Fee

   Register your business

3. One Person Company (OPC)

   Merging features of a Private Limited Company with the benefits of Sole Proprietorship, an OPC offers a single individual a distinct legal entity with limited liability protection.

   

   Register your One Person Company in just ₹1,499 + Govt. Fee

   Register your business

4. Public Limited Company

   A regulated structure with limited liability, a Public Limited Company offers shares to the public for fundraising, making it ideal for large-scale multinational corporations.

5. Sole Proprietorship

   Suited for small businesses and freelancers, Sole Proprietorship involves a single owner personally liable for all business obligations, with minimal compliance requirements.

6. Partnership Firm

   Governed by the Indian Partnership Act, a Partnership involves two or more individuals jointly sharing responsibilities, profits and liabilities.

A Closer Look at Hyderabad

Checklist for the Registration of Company in Hyderabad

Here is a comprehensive checklist for the registration of a private limited company in Hyderabad:

• Obtain a DSC for all proposed directors

• Select a name for your company

• Draft MoA & AoA

• Fill out and submit SPICe+

• Upload the required documents

• Pay the required fees

• Obtain a Certificate of Incorporation

• Open a bank account