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Private Limited Company

Private limited company is registered online with Registrar of Companies (RoC) under Ministry of Companies (MCA) under Companies Act, 2013 in India. The Company is a corporate legal identity and it’s only a shareholder while a natural person can be a director or shareholder in a company.


Key Highlight

  • Private Limited Company has artificial judicial person Status
  • Company has a separate legal identity distinct form its Promoter
  • Private Limited Company registration can be done with minimum 2 Members and 2 Directors (Members & Directors can be same)
  • A maximum of 200 Members or Shareholder and 15  Directors at a time
  • Minimum Capital of Rs. 1,00,000 is required
  • Private Limited Company is suitable and preferable for raising funds, creating brand value, building reputation due to compliance, transparency and information in public domain

Details to consider while Selecting Company Name

  • Name of the company should be attractive, unique and relevant as per law. Company name is first impression to the buyers, customers and stakeholders. 
  • The companies name should be short which make people easy to remember and pronounce.
  • Most importantly name of the company should be related to the business, in other words, company name should be explained about the company. The companies name should not be similar or identical from existing registered companies.
  • Suffix: Private Ltd. Co. is necessary to be there for understanding that the company is a private limited company. 
  • Keep in mind always that selected company name should not against the law or not illegal.

Company search 

  •  The Company search is to ensure that the selected name for the company should not been already registered. 
  • If company search is successful and there is no similar name than MCA will approve the name based on availability rules and regulation. 


Advantage & Benefits of Private Limited Company


Status of Artificial Judicial Person

A private limited company is recognised by law as an artificial legal person which has the privileges, rights & obligations of its own. It can contract, sue or be sued.

Separate Legal Entity Distinct from Promoters

A private limited separate legal entity distinct from it promoters, members, shareholders and in case of insolvency later are not personally liable

Limited Liability

The liability of promoters, members, shareholders are limited to unpaid of shares as called by the company

Enhanced Borrowing Capacity

Banks and other financial institution rely and put more trust with regard to capacity and creditworthiness of private limited company

Attractive to Investors

Private limited company is convenient to raise funds particularly by startups by issuing shares/securities to investors through private placement


Perpetual Succession

It means that private limited company remains in existence even in case of death of all shareholders/members as the ownership of shares are inherited by legal heirs



Private limited company are subjected to strict compliance & Audit report is mandatory even in case of nil transaction

Reliable, Reputation, Brand Value

Due to strict compliance, transparency & information in public domain, private limited company place reputation, brand value & reliability in the eyes of stakeholders

Compare Options

BasisPrivate Limited CompanyLimited Liability PartnershipOne Person CompanyPartnership FirmSole Proprietorship
Business Formation10-15 Days10-15 Days10-15 Days21 Days1-2 Days
Act / LegislationCompanies Act 2013LLP Act 2008Companies Act 2013Partnership Act 1932Not Applicable
Registering AuthorityROC under MCAROC under MCAROC under MCARegistrar of Partnership under Local SDM OfficeNot Applicable
Legal StatusArtificial judicial person with limited liabilitySeparate legal entity with limited liabilityArtificial judicial person with limited liabilityPartners are personally liable with unlimited liabilityPromoter is personally liable with unlimited liability
Members RequiredMinimum - 2
Maximum - 200
Minimum - 2
Maximum - No Limit
Just One Person with one nomineeMinimum - 2
Maximum - 100
Just One Person
Suitable ForStart-upsProfessional firmsIndividual promotersFamily businessesSmall businesses
Taxation BenefitsCertain benefits EfficientBenefitsLowestIndividual slab rate
Compliance ApplicabilityAudit Report, Annual Return, other compliance as per actAnnual Return, Audit report if turnover exceed Rs. 40 lac's in FY or contribution exceeds Rs.25 lacsAudit Report, Annual Return, other compliance as per actAudit Report only as per Income Tax ActAudit Report only as per sec 44AB of Income Tax Act
Investors InclinationMost attractiveNot preferableUnlikelyUnlikelyNo way

Package & Pricing

Documents for Online Registration of Private Company


PAN of Directors / Subscribers to Memorandum


ID Proof of Directors / Subscribers to Memorandum – DL/Voter ID/ Passport (Any one)


Address Proof of Directors / Subscribers to Memorandum Latest 2 month –Telephone / Mobile / Electricity bill / Bank Statement (Any one)


Photo of Directors / Subscribers to Memorandum


Email ID of Directors / Subscribers to Memorandum


Mobile Number of Directors / Subscribers to Memorandum


Place of Business Address Proof with NOC (Ownership / Rent Agreement/ Lease deed / Consent Letter


Electricity bill of place of business (Latest 2 months)


How many members/shareholders are required to start a private limited company?
Minimum two members are required to start a private limited company.

    How many directors are required to start a private limited company?
    Minimum two are required to start a private limited company. Directors can be same as shareholders but at least one director must be resident in India.

      Can members and directors be same in private limited company?
      Yes, members and directors can be same in a private limited company.

        What is minimum share capital required in private limited company?
        Earlier minimum share capital required in a private limited company was Rupees One Lakh which was waived off. Since there must be minimum of two shareholders in a private limited company, each shareholder shall subscribe minimum one share at the time of registration.

          Can NRI or foreigner incorporate a private limited company in India?

          Yes, NRI or foreigner can incorporate a private limited company in India subject to FDI norms & guidelines but appointment of one resident director is must.

          How to check availability of name for private limited company?

          Proposed name is reserved through filing RUN on MCA portal. RUN consist of information about type of company, two preferences of proposed name and object of the company. Preliminary check on MCA portal as well as for trademark is done to determine any similar names.