What is a Private Limited Company?

A Private Limited Company (Pvt. Ltd.) is the most popular type of business structure in India, ideal for startups and growing businesses. It offers limited liability protection to its shareholders and allows easy equity funding.

Under the Companies Act, 2013, a Private Limited Company must have:

• A minimum of 2 and maximum of 200 members
• At least 2 directors (one must be a resident of India)
• A unique company name
• A registered office address

Why Choose a Private Limited Company?

Here are the top reasons why entrepreneurs prefer Pvt. Ltd. companies:

1. Limited Liability Protection – Shareholders are not personally liable for company debts.
2. Separate Legal Entity – The company is a legal entity separate from its owners.
3. Perpetual Succession – It continues to exist even if shareholders change.
4. Funding Options – Can raise funds from venture capitalists and investors.
5. Credibility – Builds trust among customers, suppliers, and banks.

Documents Required for Pvt. Ltd. Company Registration

Here is the list of documents needed:

From Directors and Shareholders:

• PAN Card (mandatory for Indian nationals)
• Passport (for foreign nationals)
• Aadhaar Card or Voter ID
• Passport-size photographs
• Address proof (electricity bill, telephone bill, bank statement not older than 2 months)

For Registered Office:

• Rental agreement (if rented)
• NOC from the property owner
• Utility bill (electricity, water, or gas bill)

Step-by-Step Private Limited Company Registration Process

Registering a Pvt. Ltd. company involves the following steps:

Step 1: Obtain Digital Signature Certificate (DSC)

• Required for signing electronic documents.
• Apply for DSCs for all directors.

Step 2: Get Director Identification Number (DIN)

• Apply for DIN through SPICe+ form while registering the company.

Step 3: Name Reservation with RUN (Reserve Unique Name)

• Choose a unique company name.
• Submit the name approval request via the RUN service on the MCA portal.

Step 4: File SPICe+ Form (INC-32)

• This is an integrated form for incorporation.
• Includes eMOA (Memorandum of Association), eAOA (Articles of Association), and PAN/TAN.

Step 5: Apply for PAN & TAN

• Automatically processed during incorporation via SPICe+.

Step 6: Certificate of Incorporation (COI)

• If all documents are verified, the Registrar of Companies (ROC) issues the COI.

Step 7: Open Company Bank Account

• Use the COI, PAN, and board resolution to open a current account in your company’s name.

Eligibility for Private Limited Company Registration

• Minimum 2 directors (one must be an Indian resident)
• At least 2 shareholders
• Directors and shareholders can be the same individuals
• Registered office address in India

Compliance Requirements After Incorporation

• Filing of Annual Returns (ROC compliances)
• Maintenance of statutory registers
• Appointment of Auditor within 30 days
• Holding annual general meetings (AGMs)
• Income Tax Filing