A Private Limited Company is one of the most popular business structures in India, especially among startups and growing businesses. It is registered under the Companies Act, 2013 and offers a separate legal identity, limited liability, and structured ownership.
Key Advantages:
- Limited Liability: Shareholders are liable only to the extent of their shareholding.
- Separate Legal Entity: The company can own property, enter into contracts, and sue or be sued.
- Easy Fundraising: Preferred by investors and banks for raising capital.
- Continuity: The company exists even if ownership or management changes.
- Brand Credibility: Enhances business credibility in the market.
Basic Restrictions:
- Minimum 2 shareholders and 2 directors required.
- Maximum of 200 members allowed.
- Cannot issue shares to the public or list on a stock exchange.
- Compliance with ROC filings, annual returns, and audit is mandatory.
Documents Required:
For Directors/Shareholders:
- PAN Card
- Aadhar Card / Passport / Voter ID
- Passport-size Photograph
- Email ID and Mobile Number
For Registered Office:
- Electricity Bill / Water Bill (not older than 2 months)
- Rent Agreement (if rented)
- NOC from the property owner
Key Deliverables After Incorporation:
- Certificate of Incorporation
- Company PAN & TAN
- Memorandum and Articles of Association (MOA & AOA)
- Director Identification Numbers (DIN)
- Digital Signatures (DSC)