Launch your enterprise with confidence through a private limited company registration!
A private limited company is a closely held corporate entity designed for small enterprises, where shareholder liability is confined to their investment, membership is capped at 200 individuals, and shares cannot be offered or traded publicly.
Features of Private Limited Company
- Limited Liability Protection: Shareholder’s financial risk is confined to their shareholdings and personal assets remain untouched if the company incurs debts.
- Separate Legal Entity: It is distinct from its owners and directors. It possesses its own assets and liabilities, and business debts can't be recovered from the personal assets of its owners.
- Enhanced Fundraising Capability: Easily issue equity, preference shares, or debentures to investors, facilitating capital infusion and growth without increasing owner’s liability.
- Heightened Credibility and Transparency: Registered under the Companies Act, 2013 and visible on the MCA portal, private limited companies inspire greater confidence among clients, suppliers, and lenders.
- Perpetual Succession: Continues operation regardless of changes in ownership or the demise of members, ensuring uninterrupted business continuity.
- Simplified Share Transfer: Ownership stakes can be transferred through share allotment and transfer processes, making entry and exit of investors straightforward.
- Tax Efficiency and Benefits: Eligible for corporate tax rates, deductions, and incentives unavailable to sole proprietorships or partnerships, optimizing after-tax profitability.
- Structured Governance: Defined roles for directors and shareholders, mandatory board meetings, and prescribed compliance norms foster robust management and accountability.
Checklist / Documents required for registration of Public Limited Company:
When Indian Nationals are Directors / Subscribers:
- Affidavit of Consent – Subscriber affidavit on non-judicial stamp paper, confirming willingness to join as shareholders.
- Registered Office Proof – Rental agreement or property ownership deed or Utility bill (electricity, water, or gas).
- Name Approval – If your proposed company name includes restricted terms, attach the Central Government’s approval. For names based on a trademark (registered or pending), include the trademark certificate or application copy.
- No Objection Certificate (NOC) – From the landlord when the registered office is in a rented or leased premises.
- Identity & Address Proof – For any subscriber/director without an existing DIN, submit Government ID (Aadhaar, passport, voter ID) and Address proof (utility bill, bank statement, etc.)
When Foreign Nationals are Directors / Subscribers:
- Passport Copy
- Address Verification – Driving license, residence permit, bank statement, or any government-issued ID containing the address.
A Private Limited Company is a corporate structure where ownership is divided among shareholders, and the business is managed by directors. It provides limited liability protection, meaning members are only responsible for company debts up to the amount they’ve invested.
Key benefits include:
- Protection of personal assets
- Capability to raise funds by issuing shares
- Recognition as an independent legal entity
- Potential tax benefits under corporate tax laws
- Stronger business credibility and market trust
Commonly required documents include:
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- PAN cards of all shareholders and directors
- Proof of the company’s registered address
- Identity proof of directors and shareholders
- Digital Signature Certificate (DSC) for all designated directors
The MoA is a foundational legal document that outlines the company’s objectives, scope of operations, and its relationship with shareholders.
The AoA defines the internal structure and rules of governance, specifying the duties, powers, and rights of the company’s directors and shareholders.
A Private Limited Company must have at least two directors.
Yes, individuals who are not Indian citizens can become shareholders or directors in a Private Limited Company, provided they comply with foreign investment and regulatory norms.
No, there is no mandatory minimum paid-up capital required to incorporate a Private Limited Company.
The company is taxed separately from its owners. It pays corporate tax on its profits, and dividends distributed to shareholders may be taxed in their hands based on prevailing tax laws.
Yes, a Private Limited Company can transition to other business formats like a Public Limited Company by following the appropriate legal procedures.