What is a Private Limited Company?
Private Limited Company in India is the most popular business structure due to stability and growth opportunities served by this corporate structure. It is an organisation registered for defined business objects owned by a close group of members not being more than 200 at a time. The shareholders of the company are said to be the owners, whereas the personnel managing day-to-day operations are called as directors.
A registered company has its separate legal existence apart from its shareholders and directors. Therefore, the personal assets of the shareholders are secured and treated separately from the assets and liabilities of the company. Owing to the separate existence of company, any change in shareholders or management does not affect the survival of the company.
The registration and operations of the companies are governed by Indian Companies Act, 2013 and Ministry of Corporate Affairs (MCA) is appointed as the regulatory body. The centralised and transparent registration process makes this corporate structure highly credible from other entities. The Government of India is consistently introducing such provisions that make the registration process easy and simpler for every start-up especially small scale. Therefore, private limited company registration in India is an easy task when properly assisted by professionals.
Advantages of Private Limited Company
Separation of Management and Ownership
Liability of owner is limited to subscribed capital
No minimum paid-up capital required
Hire Managerial Personnel without affecting ownership
Higher credibility allows ease of raising fund
Eligible to register under Start-up India Scheme
Minimum Requirements for PVT Ltd Company Registration
Minimum 2 Directors
At least 1 director to be Indian Resident
Minimum 2 Shareholders
DIN & DSC of all directors and shareholders
Authorised Capital of Rs 1 Lakh
Registered Office address in India
Documents Required For Private Company Registration
- 1Copy of PAN Card of Directors and Shareholders
- 2Identity Proof of Directors and Shareholders
- 3Address Proof of Directors and Shareholders
- 4Passport Size photograph of Directors and Shareholders
- 5Electricity Bill or Telephone Bill for business place
- 6NOC for business place and Rent Agreement, if any
Successful Registration in 3 Easy Steps
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Provide basic details & documents required for registration
Make a quick payment through our secured payment gateways
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Procurement of Digital Signatures (DSC)
Application for Name Reservation
Documents drafting including MOA and AOA
Certificate of Incorporation
Your company is Incorporated!
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Additional Stamp Duty for MP, Kerala and Punjab
Frequently Asked Questions
Minimum of 2 directors and 2 shareholders are required in a Private Limited Company, where directors and members can be same also. Further, maximum 15 Directors and 200 members are permissible in a Pvt Company.
There are no limitations in terms of citizenship or residency to be a director. But the person should be 18 or above 18 years of age i.e. not a minor. Also, the proposed director shall have DIN and not be disqualified to be appointed as director in Limited Company as per the provisions of Indian Companies Act, 2013. The application of DIN Allotment is now merged with the application for formation of a company subject to limit of maximum 3 DIN.
Director Identification Number is a unique number assigned by the Ministry of Corporate Affairs to Individuals on application made, which allows any individual to be Director in any Company or Designated Partner in LLP.
Digital Signature Certificate is provided in a token form and issued by Certified Authorities. Any form filed for online company registration in India shall be submitted after affixing the DSC of an Applicant. Also, the directors will require DSC for DIN application and the subscribers to MOA shall possess DSC for submitting e-forms for incorporation.
It does not require any minimum amount to be infused as capital. However, fee must be paid to the Government for issuing a minimum of shares worth Rs.1 lakh [Authorized Share Capital] during company registration. Also, there is no requirement to show proof of capital invested during the registration process.
Authorised capital shows maximum amount of capital a company can raise by way of issue of shares at present or in future whereas the Paid-up Capital refers to the actual amount raised by the company i.e. amount paid by shareholders on issuance of shares. Register a company in India by any amount of paid-up capital, which can be less than authorised capital but not exceeding such.
An address in India where the registered office of the company will be situated is must requirement for formation of Pvt Company. The premises can be a commercial / industrial / residential where communication from the MCA will be received.
Ministry has introduced a new form "RUN" (Reserve Unique Name) for company name registration on its portal. Under "RUN", the applicant can make application by providing 2 different names with its significance. The names should be unique and in accordance with the provisions.
The company must hold a Board Meeting at least once in every 3 months. In addition to the Board Meetings, an Annual General Meeting (AGM) must be conducted at least once every year. Fulfilment of Annual Compliance Requirements is must to maintain active status of the company.
Any person is eligible to be a shareholder while registration or afterwards. A Body Corporate such as company or LLP; and Association of Persons (AOP) such as Society or Trust can also hold shares in a company. Further, a group of persons can jointly hold the share in the company.
Yes, a NRI or Foreign National can be a Director in a this form of company after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident Indian and the criteria shall be followed even after incorporation.
Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares in this company subject to Foreign Direct Investment (FDI) Guidelines.
100% Foreign Direct Investment is allowed in India in many of the industries under the Automatic Route. Under the Automatic Route, only a post-investment filing is necessary with the RBI indicating the nature of investment made. There are a few industries that require prior approval from the RBI, in such cases, approval must first be obtained from RBI prior to investment.
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