Govt. Charges As applicable
The most preferred business structure for entrepreneurs in India — offering limited liability, legal identity, and easy access to funding. Regulated by MCA under the Companies Act, 2013.
Name of Proposed Company
Significance of the Name
Objective of the Business
DIN of Directors (if available)
Class II Digital Signatures
KYC of All Promoters
Identity Proof of Directors
Address Proof of Directors
Authorised Capital Structure
Registered Office Address + Proof
NoC from Office Owner
A company which is registered as a Separate legal entity from its Directors and Shareholders, which means company can have property registered in its own name, separate bank account and can sign contract in its own name. Moreover, liability of the company is separate from any person in company. In simple terms company is considered as an individual.
Overview
A Private Limited Company is one of the most popular forms of a legal entity for doing business in India. It is regulated by the Ministry of Corporate Affairs and incorporated under the provisions of The Companies Act, 2013.
| Applicable Section | Type of Company | Key Feature |
|---|---|---|
| Section 2(21) | Company Limited by Shares | Liability limited strictly to unpaid share value. e-commerce, Traditional startups, and scaling businesses. |
| Section 2(22) | Company Limited by Guarantee | Liability triggers only during liquidation up to a fixed promised amount. Societies, Clubs, and trade associations. |
| Section 2(92) | Company Unlimited Company | No liability shield; personal assets are at risk for business debts. Rare; specific financial consulting or niche entities. |
| Section 2(62) | One Person Company (OPC) | Sole proprietorship benefits with the legal shield of a corporate entity. Individual founders and independent professionals. |
| Section 2(85) | Small Company | Sub-category with higher thresholds (Capital ≤ ₹10Cr / Turnover ≤ ₹100Cr). Mid-sized family businesses wanting to reduce compliance burden. |
| Section 8 | Section 8 Company | Complete focus on social, charitable, or cultural objectives. No dividend payouts. NGOs, charitable trusts, and foundations. |
Key Features
Unlike Sole Proprietorship, a Private Limited Company enjoys a separate legal status. Even if members or management change, the company continues to exist.
The company can hold assets in its own name, separate from its shareholders' personal assets.
Members' liability is limited to the shares held. No personal liability for company debts beyond the shareholding amount.
Creditworthiness of a registered company is better than any other form of business organisation.
At least TWO Directors and TWO Members are required for formation of a Private Limited Company.
Prerequisites
For smooth registration of a Private Limited Company, need to comply with mandatory compliances. The list of minimum requirements are:
Why Choose?
Liability of the members of the Company is limited only to the extent of the shares subscribed / liability undertaken by the members of the company.
Creditworthiness of the registered business is more than an unregistered business, allowing the company to take loans from Banks and Financial Institutions easily.
The income of the company is taxed at a flat rate under Income Tax Act, 1961, whatsoever may be the turnover of the company — clear and predictable tax liability.
A company enjoys the status of a separate legal entity and does not come to an end by death or change of management or owners, unless legally dissolved.
A Company has the capacity to initiate legal proceedings against any person or entity in its own name before the court of law — a right not available to unregistered entities.
How It Works
A Private Limited Company is registered under the Companies Act, 2013 through the procedure prescribed under the Act and Rules and Regulations made thereunder.
The proposed name of the Company is applied by the promoter by paying requisite fee online through RUN (Reserve Unique Name) Web Service. The applied name will be processed by the Central Registration Centre (CRC). To avoid rejection, the name must follow the guidelines provided under Companies (Incorporation) Rules, 2014. Once approved, the name is available for 20 days to complete incorporation. The name must end with "Private Limited".
Digital Signatures of all members and at least one Director need to be obtained for incorporation. The following KYC details are required:
Once the name gets approved by the department, documents — including the Memorandum of Association (MOA) and Articles of Association (AOA) — are prepared as per the guidelines given under the Act and Rules for incorporation of the Company.
Incorporation of the Company is done through SPICe (Simplified Proforma for Incorporating Company electronically). Form SPICe – INC-32 is filed along with eMOA (INC-33) and eAOA (INC-34) with the Central Registration Centre (CRC) of Ministry of Corporate Affairs, along with requisite Stamp Duty charges.
Once the entire process is completed and the department is satisfied with all compliances, the Certificate of Incorporation is issued along with allotment of PAN (Permanent Account Number) and TAN (Tax Deduction Account Number). The proposed company becomes a separate legal entity and can immediately transact business in its own name.
Documents Required
Document requirement for company splits into two categories first is documents for Directors & Shareholders and second is documents for registered office. Let us understand it in Simple way-
Documents should not be older than 2 months
Latest Utility Bill for the Property
Property Documents
GST registration is not mandatory for a Private Limited Company if the turnover of the company does not exceed the threshold limit as applicable to the company. GST registration is mandatory only if the company crosses the prescribed turnover limit or falls under compulsory GST registration categories.
Private Limited Company Registration
A Private Limited Company is a separate legal entity registered under the Companies Act, 2013. It can own assets, open bank accounts, and conduct business in its own name.
A minimum of 2 Directors and 2 Shareholders are required. The company must also have a registered office address in India.
No, there is no minimum capital requirement. A company can be registered with any amount of capital.
Required documents include PAN Card, Aadhaar Card, address proof, passport-size photograph, and registered office proof.
Usually, the registration process takes around 7–15 working days, depending on approval and document verification.
GST registration is mandatory only if the company crosses the prescribed turnover limit or falls under compulsory GST registration categories.
Major benefits include limited liability protection, separate legal identity, better credibility, easy funding opportunities, and perpetual existence.
Yes, the same individuals can act as both Directors and Shareholders in a Private Limited Company.
