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What is Private Limited Company?
A Private Limited Company (Pvt Ltd) is one of the most preferred business structures across countries like India, the United Kingdom (UK), and several other jurisdictions. Designed to provide the perfect blend of operational flexibility, legal protection, and limited liability, this structure is particularly favored by startups, entrepreneurs, and small to medium-sized enterprises (SMEs).
Unlike sole proprietorships or partnerships, a Pvt Ltd company exists as a separate legal entity, meaning the company and its owners are legally distinct. This distinction protects personal assets from business liabilities and opens up more avenues for raising funds and scaling operations.
Whether you’re planning to launch your startup or looking to restructure your existing business, understanding the fundamentals of a Private Limited Company can help you make an informed decision. In this article, we’ll cover:
Key Features of a Private Limited Company in India:
- Separate Legal Entity: The company has its own legal identity, separate from its owners (shareholders).
- Limited Liability: Shareholders are only liable up to the amount of their share capital.
- Minimum & Maximum Members: Typically, 2 to 200 members (depending on jurisdiction).
- No Public Trading: Shares cannot be publicly traded on the stock exchange.
- Perpetual Succession: The company continues to exist even if shareholders or directors change.
Documents you get after registering for Private Limited Company:
- Unique Name Approval
- Company PAN & TAN
- Digital Signature Certificate – 2
- Memorandum of Association
- Articles of Association
- Director Identification Number – 2
Benefits of a Private Limited Company in India:
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1. Limited Liability |
Protects the personal assets of shareholders in case of company debts or losses. |
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2. Tax Advantages |
Often eligible for tax benefits and deductions not available to other business forms (varies by country). |
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3. Access to Funding |
Easier to raise capital through private investors, venture capitalists, or loans. |
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4. Separate Management |
Ownership (shareholders) and control (directors) can be distinct, allowing for professional management. |
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5. Perpetual Succession |
Not affected by death or exit of shareholders or directo₹ |
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6. Less Compliance |
Eligible for exemption from various provisions of Companies Act, 2013. |
Eligibility Criteria under the Companies Act, 2013:
- Minimum and Maximum Number of Members
- Minimum: 2 members (shareholders)
- Maximum: 200 members (excluding current and former employees who are shareholders)
- Minimum Number of Directors
- At least 2 directors are required.
- At least one director must be a resident in India, i.e., stayed in India for a minimum of 182 days in the previous calendar year.
- Company Name
- The proposed name must be unique and not similar to any existing company or trademark
- End with “Private Limited”
- Registered Office
- The company must have a registered office in India within 30 days of incorporation.
- Address proof and utility bill (not older than 2 months) are required.
- Capital Requirement
- The private limited company must have an authorised share capital of ₹1 lakh. As per the 2015 amendment, there is no minimum paid-up capital requirement.
- You can incorporate with any amount of capital, even ₹1.
- Digital Signature Certificate (DSC) & Director Identification Number (DIN)
- DSC: Required for all proposed directors to sign e-forms.
- DIN: Every director must obtain a valid DIN from the Ministry of Corporate Affairs (MCA).
- Memorandum & Articles of Association (MOA & AOA)
- MOA: Defines the company’s scope, objectives, and activities.
- AOA: Governs internal management and company rules.
- Filing with the Registrar of Companies (ROC)
· Required documents must be filed with the ROC via SPICe+ form (INC-32) along with supporting forms
Documents Required for Private Limited Company Registration:
1. Registering a company for the first time
- Passport Size Photograph of all Directors
- Name Approval Letter with 2 proposed names
- Object of the company
- Address proof of all Directo₹ (Bank statement/Electricity bill/) (not more than 2 months)
- PAN card and Aadhar card of all Director
- Identity proof of all Directo₹ (Driving license/ Voter ID card/passport)
- Email id and mobile number of all Directo₹
- Registered office address proof. (Electricity bill/ Telephone bill/Gas Bill) (not more than 2 months)
- Rent Agreement (Company name should be mentioned with complete address) (on ₹ 100 stamp paper with Notary)
- NOC (Company name should be mentioned) (on ₹ 100 stamp paper)
- Board resolution authorising investment in the company
2. Already a director of an existing company.
- Passport Size Photograph of all Directors
- Name Approval Letter with 2 proposed names
- Object of the company
- Address proof of all Directo₹ (Bank statement/Electricity bill/) (not more than 2 months)
- PAN card and Aadhar card of all Directo₹
- Identity proof of all Directo₹ (Driving license/ Voter ID card/passport)
- Email id and mobile number of all Directo₹
- Registered office address proof. (Electricity bill/ Telephone bill/Gas Bill) (not more than 2 months)
- Rent Agreement (Company name should be mentioned with complete address) (on ₹ 100 stamp paper with Notary)
- Digital signature certificate of All Directo₹
- DIR-2 of all Directo₹
- NOC (Company name should be mentioned) (on ₹ 100 stamp paper)
- Board resolution authorising investment in the company
(Please note that any additional documents may be requested as needed.)
Process to Register Private Limited Company.
- Obtain DSC (Digital Signature Certificate) & DIN (Director Identification Number)
- Reserve your unique company name.
- Prepare MoA & AoA
- Submit within 20 days of reserving a unique name.
- Get Certificate of Incorporation
- Apply for PAN & TAN
Who Should Register a Private Limited Company?
A Pvt Ltd company is the right choice for:
- Startups planning to raise funding.
- Businesses with co-founders or multiple partners.
- Entrepreneurs looking for credibility with banks & vendors.
- Companies with growth plans—national or international.
Mr Brandy’s Private Limited Company Registration Services
When you register with us, you get:
- Company Name Approval: Ensuring your brand name stands out.
- Digital Signature Certificate (DSC): Mandatory for online filing.
- Director Identification Number (DIN): Legal identity for directors.
- Memorandum of Association (MOA) & Articles of Association (AOA): Drafted by experts.
- Incorporation Certificate: Proof of your registered Pvt Ltd Company.
- PAN & TAN Application: For taxation and business transactions.
- GST Registration Support: If required for your business operations.
- Bank Account Assistance: Guidance to open a current account.
Our Simple 5-Step Registration Process
- Fill the Form → Share your details with us online.
- Name Approval → We secure your desired company name.
- Documentation → Our experts draft MOA, AOA, and other documents.
- Filing with MCA → We file your application under the Companies Act.
- Get Certificate → Receive your Certificate of Incorporation within 3–5 days.
