A private limited company is a business entity registered under the Companies Act, 2013. It offers limited liability and a separate legal identity to its shareholders. This type of company must have at least two directors and shareholders. There are some restrictions on share transfers to maintain control and confidentiality. Key legal characteristics include limited liability, ongoing existence, statutory compliance, and structured governance.
Compared to limited liability partnerships, which are ideal for professionals, or a one-person company suited for solo entrepreneurs, a private limited company allows for better growth and credibility. It provides more legal protection and funding options than a sole proprietorship, which has unlimited liability and lacks a separate legal identity. This makes it the top choice for startups and expanding businesses that want long-term stability and investor confidence.
To register a private limited company in India, the following criteria must be met:
A Private Limited (Pvt Ltd) Company Registration is one of the most common and widely chosen forms of business entities in India. As of January 2022, there were over 1.43 million companies registered in India, with many opting for the Pvt Ltd structure due to its flexibility and ease of raising equity financing.
Below are the Key Features of a Private Limited Company that make it a popular choice:
A private limited company can be formed with a minimum of two shareholders and a maximum of 200 shareholders.
Shareholders have limited liability, meaning if the company faces financial losses, the shareholders are only liable to pay back the amount they invested in the company. This protects personal assets from business risks.
Private limited companies allow shareholders to transfer shares easily and freely between themselves. This enhances flexibility and business adaptability.
A major advantage of a private limited company is legal perpetuity. The company continues to exist even if one of the shareholders dies, becomes insolvent, or files for bankruptcy. This ensures business stability over time.
Private limited companies are eligible to raise Foreign Direct Investment (FDI), which can provide access to international funding and growth opportunities.
If you have plans for expansion, growth, or high investment opportunities, then private limited company registration is the ideal option for you. Company Registration offers numerous advantages, especially if you’re aiming for business expansion, strategic investments, or international opportunities. Learn how you can register your company in India today with JustStart!
Starting a Private Limited Company in India requires careful attention to certain criteria and compliance with the Companies Act, 2013.
Below is the essential Checklist for a successful Pvt Ltd Company Registration Online:
✅ Minimum Two Directors
✅ Registered Office Address
✅ Capital Structure
There is no minimum capital requirement for a Private Limited Company. Shareholders can contribute any amount of capital as per their financial planning.
While registering a Private Limited Company, understanding the Concept of Authorized Capital and Paid-Up Capital is vital:
Having the right documentation and understanding these requirements can streamline the registration process. With JustStart, you don’t have to navigate this complex process alone. Our team ensures that your company registration online is completed accurately and efficiently, following all government norms.
To ensure a smooth and hassle-free Private Limited Company Registration, the following documents are required. These documents are categorized based on the requirements for directors and the company’s registered address.
For individual
The electricity bill is in the name of the premises. If not, then a notarized rental agreement/ NOC from the owner of the property is required.
For Individual -Foreign Nationals
Passport-size photograph
All the above-mentioned documents should be notarized, especially in the case of an NRI in India (a Commonwealth country). In case of a non-Commonwealth country, then all the documents should be notarized /Apostilled/attested as per the Hague Convention or by the Indian Embassy as per the Companies Act,2013.
For the Address proof of the company
The electricity bill is in the name of the premises. If not, then a notarized rental agreement/ NOC from the owner of the property is required.
Registration of a Private Limited Company is a straightforward process when guided by experts. With the right documentation and adherence to legal requirements, your Company Registration in just a few steps.
JustStart can help you obtain DSCs through an authorized certifying authority
Once the information and documents are ready, the following forms need to be filed:
The MCA reviews the submitted forms and, upon approval, issues:
Upon successful verification by the MCA, the company will receive its Certificate of Incorporation, marking its official establishment.
The entire process can be completed within 7–10 working days, provided all required documents are submitted accurately and on time.
At JustStart, we specialize in simplifying the Private Limited Company Registration Process. Let us handle the paperwork, ensure compliance, and guide you every step of the way.
When it comes to Pvt Ltd Company Registration in India, having expert legal assistance can simplify the process and ensure compliance. At JustStart, we specialize in making company registration seamless and stress-free for our clients.
Post incorporation compliance purpose is to ensure that all the compliances of the company operate according to the ethical and legal standards. Compliances need to be filed on time to avoid late penalties. Now let’s discuss the mandatory compliances for a private limited company in India.
✅ Appointment of Auditor:
The ADT-1 form is to be filed for the appointment of an auditor. This form needs to be filed within 30 days from the date of incorporation. If a new auditor is appointed, it will be within 15 days before the date of the annual general meeting of the company in the form ADT-1 with the ROC.
✅ Commencement of Business Form:
INC-20A form will be filed for the commencement of business. This form needs to be filed within 6 months from the date of incorporation. This form is mandatory because this form can be filed with details like the company’s bank account, shareholders' subscriber’s amount, the company’s board photo with the directors, etc.
✅ Director’s KYC
DIR- 3KYC form will be filed for updating the information of the directors every year. This form is mandatory to file every year to keep updating the directors data on the MCA; otherwise it will be levied a penalty of Rs. 5000 per director.
✅ Return of Deposits
Form DPT-3 requires information on deposits and non-deposits taken by the company. If the company doesn't have any deposits, then it will not be required to file the form.
✅ Financial Statements Return
Form AOC-4 is one of the most important compliances for a pvt ltd company, it will be filed with the financial statements, like the audited balance sheet of the company, with the registrar of companies within 30 days from the date of the annual general meeting of the company. It contains all the company's disclosures, like turnover, board meetings, net worth, etc.
✅ Annual Return
The company will submit the disclosures of the list of shareholders with Form MGT-7. This form needs to be filed within 60 days from the date of the annual general meeting.
✅ Income Tax Return
Every company has to file the income tax return by 31st October of every assessment year.
If someone does not file the above mandatory forms on time, the company will be non-compliant and levy high penalties. It is preferable to complete the compliance after incorporation to avoid late fees and penalties.
There is no minimum capital requirement to start a pvt ltd company as specified in the Companies Act.
Authorized Capital is the highest amount of money a company can collect by selling shares, according to its rules and the Paid-up Capital is the actual money that shareholders have given to the company for those shares.
The Director Identification Number (DIN) is a unique number given to anyone who wants to be a director of a company in India. It helps keep track of all directors.
A Digital Signature Certificate (DSC) is an electronic form of a signature used to verify the identity of the person signing digital documents. Anyone who needs to sign digital documents, such as company directors, business owners, or professionals filing government forms online, should obtain a DSC.
Yes, you can use your home address as your company’s official address, as long as it’s okay with the rules and can handle any mail or notices the company gets.
Yes, a private company can handle different businesses or activities. It can have several types of businesses under one company name, as long as it follows the rules and regulations for each type of business.
The Mandatory compliances for a private limited company include filing annual returns, maintaining statutory registers, holding annual general meetings (AGMs), filing income tax returns, and following Company Law requirements.
The Registrar of Companies (ROC) is a government official responsible for overseeing and regulating the registration, compliance, and legal matters of companies and limited liability partnerships in a specific region or state.
A Private Limited Company Registration gives you limited liability, so you’re only responsible for what you invest. It also makes your company look more trustworthy, helps you raise money more easily, and provides tax benefits.
Yes, a Private Limited Company in India needs a real physical address where it can receive mail and official documents. This address can be a business or home address.
Yes, NRIs (Non-Resident Indians) and foreign nationals can become directors of a Pvt Ltd Company in India. However, at least one director must be a resident of India.
Private Limited Companies registered in India are required to file their Income Tax Returns every year using Form ITR-6.
A director is responsible for managing and making decisions for the company, while a shareholder owns shares in the company and has a stake in its profits.
A Private Limited Company in India needs GST registration if its turnover exceeds the threshold limit or if it sells taxable goods or services.
For Pvt Ltd Company Registration, it needs at least two directors in India.
You can check the availability of a company name through the MCA (Ministry of Corporate Affairs) portal using the “RUN” (Reserve Unique Name) service. The system verifies if the name is unique, not identical or too similar to an existing company or trademark, and complies with MCA naming guidelines. Once approved, the name can be reserved for your company incorporation.
A Private Limited Company must file its income tax return using Form ITR-6 if it is not claiming exemption under Section 11 (income from property held for charitable or religious purposes). Filing must be done electronically on the Income Tax Department’s e-filing portal before the due date specified under the Income Tax Act.
No, a Private Limited Company cannot raise funds from the public. It is restricted from inviting or accepting public deposits. However, it can raise capital through private funding methods such as issuing shares to existing shareholders, venture capitalists, private equity investors, or by borrowing from banks and financial institutions.
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