A private limited company is a business system designed for small enterprises. The owners of such an entity have financial liability only up to the extent of their shares in the company. Private limited companies can have a maximum of 200 shareholders and their shares are restricted from being bought by the public.

Steps required to register a private limited company:

• Start by getting a digital signature certificate (DSC), which is required for signing electronic documents.
• Get a director identification number (DIN), then secure a DIN for every director.
• Check if the name of the desired company is available for registration. Note that the RUN web service, whose original name was available earlier, is only for changing the names of existing companies from February 23, 2020.
• Complete the SPICe+ INC-32 form; this consolidates multiple registration processes into one application.
• Prepare and submit the e-Memorandum of Association (e-MOA) and e-Articles of Association (e-MOA), which outline the company’s objectives and governing rules
• Finally, apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TNC).

The entire process of registration, including approval of DIN, name and incorporation, usually takes ten working days. The streamlined process of submitting all documents in a single application through the Ministry of Corporate Affairs (MCA) has made setting up a private limited company more efficient. This change is a significant step towards e-governance, and it is especially beneficial for companies that want to expand their scope of work.