LLP Registration

1. Minimum two directors and shareholders. One shareholder and director must be an Indian citizen and resident
2. A valid Registered Office Address for the business
3. Documents for shareholders and directors in a clear and legible format
4. Name of the company as per the MCA guidelines
5. Minimum authorized and paid-up capital

There is no minimum Paid-up capital requirement to start a Private Limited Company. However, per the Companies Act, a company needs to keep a minimum Authorised Capital of ₹1 Lac divided into 10,000 equity shares with a face value of ₹ 10 each. Each shareholder must subscribe to at least 1 share to introduce a sufficient amount for running the business. The paid-up capital needs to be deposited in the Current Account of the company as Share Capital.

Authorized capital is the maximum amount of capital that a company can raise by issuing shares at present or in the future. Authorized capital can be increased later as well if the company wishes to raise funds through the issue of fresh equity. Stamp duty for company registration is paid on the authorized capital.

Whereas, the Paid-up Capital refers to the actual amount paid by the shareholders for issuing shares. One can incorporate a company in India by any amount of paid-up capital which can be less or equal to the authorized capital.

Director Identification Number (DIN) is a unique number assigned by the Ministry of Corporate Affairs (MCA). It is issued to Individuals who want to elect as directors in a company or a designated partner in an LLP. There is only single DIN issued to an individual. DIN can be surrendered at any time with the help of filing appropriate forms with MCA. All DIN holders need to comply with DIR 3 KYC filing for DIN Activation process every year.