Private Limited Company(Pvt. Ltd.)
A Private Limited Company is a separate legal entity that offers **limited liability** and credibility — ideal for founders planning to scale and attract investors.
Overview
A Private Limited Company (Pvt. Ltd.) is a popular corporate structure in India. It requires a minimum of **2 directors** and **2 shareholders**, with at least one director being an **Indian resident**. It is a separate legal entity from its owners, offering limited liability where shareholder risk is restricted to their shareholding. Shares are not freely transferable, and there is a maximum of 200 shareholders.
Key Benefits
Limited Liability Protection to Directors
Better image and credibility in the Market
Easy to raise funds and loans
Favorite Business structure for Investors
Easy to attract Employees
Easy to Sell Company
Prerequisites
Min 2 shareholders
Min 2 directors
The directors and shareholders can be the same person.
One of the directors must be an Indian Resident (stayed in India for 182 days in the previous financial year).
PAN Card copy (mandatory for Indian nationals)
Identity Proof (Passport, Voter ID, Driving License, Aadhaar Card)
Address Proof (Latest Bank Statement, Electricity/Mobile Bill, must not be older than two months/30 days)
What You'll Receive
DIN (Director Identification Number) for 2 directors
Digital Signature Token (DSC) for all promoters
Company Name Approval (RUN/SPICe as applicable)
MOA + AOA
Incorporation Certificate
Company PAN card
Company TAN/TDS Number
Bank Account Opening Document Support
Frequently Asked Questions
You need to arrange very simple documents of directors like a photograph, PAN card, and one address proof.
No, commercial office space is not required. You can show your own residential or rented home address as the registered office address of the Company. This office address can be changed at any time after the incorporation of the company.
ROC is a Government office with whom companies get registered. Every State has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices (Mumbai & Pune in Maharashtra; Chennai & Coimbatore in Tamilnadu).
No. The service provider offers a complete online Company Incorporation process. All legal documentation and interaction with the ROC are handled by them.
No. Once the company is formed, it will be valid until it is officially closed down. No renewal or fees are required. However, every year companies have to file very basic returns with the ROC office.
Director Identification Number (DIN) is a unique identification number required for a person to become a director of a company. It is issued by the ROC office and is similar to a PAN Card number.
A digital signature (DSC) is an electronic signature in the form of codes. It is used for signing the electronic forms filed with the ROC for the incorporation of a Company and cannot be used in physical documents.
A company name is a very important part of the registration. It is divided into 3 parts: Keyword (brand name), Activity word (nature of business), and Business Type word (Pvt. Ltd. or LLP). The suggested name should not match existing companies or trademarks.
MOA means Memorandum of Association and AOA means Articles of Association. These are the bylaws or rules based on which important matters like the main business of the company or meetings are decided.
Yes, the company office address can be changed anytime after incorporation.
Capital is the investment made by shareholders. Authorised capital is the maximum amount for which a company can issue shares and is used to calculate ROC fees and stamp duty. Paid-up capital is the actual investment from shareholders that goes into the company's bank account, against which share certificates are issued.
No. After the company is registered, it needs to open a bank account, and then the capital can be deposited anytime within two months of incorporation.
No. A Private limited company can be started from scratch. There is no obligation for the company to have sales or turnover after incorporation.
There is no automatic applicability. Provident Fund (PF) and GST laws are applicable in the same way for all types of businesses and apply only after crossing certain threshold limits.