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Set up Your Dream Company
Private Limited (Pvt. Ltd.) Company Registration In India
Register your startup company as private limited with Online Legal India™ at the lowest Fees. Online Legal India is an MCA (Ministry of Corporate Affairs) & MSME registered company in India. Our experienced (10 Yrs+) CA/CS will draft & complete all the documentations on the same day.
Overview
Private Limited Company in India is one of the popular forms of business entities. Approximately 90% of companies in India are registered under Private Limited Company. There are more than 150,000 companies that are being registered on a yearly basis. It is a separate legal entity with limited liability and perpetual existence incorporated now under the Companies Act, 2013.
What is a private limited company?
In India, a private limited company is a preferred business structure, known for its limited liability and privately held status. Its popularity stems from numerous advantages, such as limited liability protection, ease of formation and maintenance, and recognition as a distinct legal entity, making it an attractive option for entrepreneurs. A private limited company is legally separate from its owners and requires a minimum of two members and two directors for operation.
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Limited Liability Protection: Shareholders are only liable up to their shareholding amount, safeguarding their personal assets, even if the company incurs financial losses.
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Separate Legal Entity: A private limited company has its own legal identity, allowing it to own assets, engage in contracts, and participate in legal proceedings independently.
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Shareholder Requirements: A minimum of two shareholders is required, with a cap of 200 shareholders for private companies.
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Director Requirements: The company must have at least two directors, one of whom must be an Indian citizen.
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Minimum Share Capital: A minimum paid-up capital of Rs. 1 lakh (or a higher amount as specified) is mandatory.
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Firm Name Requirement: The company’s name must end with "Private Limited," signifying its private status.
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Restrictions on Share Transfer: Share transfers are limited and require approval from the Board of Directors or must align with the company’s Articles of Association.
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No Public Solicitation: Private limited companies are restricted from inviting the public to subscribe to their shares or debentures.
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Compliance Obligations: These companies must meet legal and regulatory requirements, including maintaining accurate financial records, conducting annual general meetings, and filing annual returns with the Registrar of Companies (ROC).
Each characteristic of a private limited company offers unique benefits, making it a favorable choice for many entrepreneurs in India.