Private Limited Company

Overview

A Private Limited Company is a privately held company registered under the Companies Act, 2013. It gives its owners limited liability, a separate legal identity and perpetual succession, and it is the structure that investors and venture funds expect. Ownership is divided into shares held by up to 200 shareholders, and the company can raise equity, sign contracts and own assets in its own name.

Objective

To give founders a credible, fundable corporate structure that separates personal and business liability and can scale, raise capital and add shareholders over time.

Types

Characteristics

• Separate legal entity, distinct from its shareholders
• Limited liability, capped at each member's shareholding
• Perpetual succession, unaffected by changes in ownership
• Minimum 2 and maximum 200 shareholders
• Minimum 2 directors, at least one resident in India

Eligibility

• At least 2 directors and 2 shareholders (an individual can be both)
• At least one director must be a resident of India
• A unique company name that does not clash with an existing company or trademark
• A registered office address in India

Governing law

• Companies Act, 2013
• Companies (Incorporation) Rules, 2014

The process

1. 1
   Name reservation

   We check availability and reserve your company name with the MCA (SPICe+ Part A).

2. 2
   DSC & DIN

   We obtain Digital Signature Certificates and Director Identification Numbers for the directors.

3. 3
   Draft MoA & AoA

   We draft the Memorandum and Articles of Association that govern the company.

4. 4
   File SPICe+ with MCA

   We file the incorporation form along with PAN, TAN and EPFO/ESIC applications.

5. 5
   Certificate of Incorporation

   The MCA issues the Certificate of Incorporation with your CIN, PAN and TAN.

Documents required

• PAN card and a passport-size photo of each director and shareholder
• Identity proof (Aadhaar, Passport, Voter ID or Driving Licence)
• Address proof (recent bank statement or utility bill)
• Registered office proof (utility bill) with a no-objection letter from the owner
• Passport (mandatory) for any foreign national director or shareholder

Benefits

• Limited liability protects your personal assets
• The preferred structure for raising equity funding
• Higher credibility with clients, banks and vendors
• Perpetual existence independent of its owners
• Easy to add shareholders and transfer ownership

What you get

Certificate of Incorporation (with CIN), company PAN and TAN, and the registered MoA & AoA.

Frequently asked questions