What is Private Limited Company?


Private Limited Company is the most popular legal structure for businesses in India. It should be chosen by everyone who looking to build a corporate entity. Private limited company has a minimum of two members and a maximum of fifty members. A director of a private limited company has limited liability towards creditors. In case of a default, banks / creditors can sell only company’s assets but not the personal assets of a directors. A Private limited company is considered one of the most popular corporate entity amongst all the small, medium and the large businesses in India due to its various advantages.

A Private limited company registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014.Some of the unique features of a private limited company like the limited liability protection to shareholders, the ability to raise the equity funds, separate legal entity status and the perpetual existence make it one of the most recommended type of business entity for small and medium sized businesses that are owned by families or professionally managed.

It takes 10-12 working days to complete company formation, subject to the government processing time and the client document submission.



Limited Liability

The one of the biggest benefit of private limited companies is limited liability. Private limited companies treated as a single entity that make the company responsible for all debts. If anything happens to the company, its members are not personally affected.

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Separate Legal Entity

A Private Limited Company is legalentity and juristic person established under the Companies Act. A member (Shareholders/Directors) of a company has no personal liability to the creditors of a company for company's debts

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Easy Transferability

The ownership of a business can be transferred by transferring the sharesvery easily. The signing, transfer and filing of share transfer form and the share certificates is adequate to transfer the ownership of a company. In a private limited company, the consent of other shareholders may be required to effect share transfers.

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Finance and Resources

When more resources or large-scale production is necessary, forming a private limited company protects the interests of lenders. With adequate funding, your company can produce goods at a lower cost, thus increasing profits and customer satisfaction. Furthermore, the future of the business becomes more secure. DIY Accounting reports private limited companies “tend to retain more funds within the business to meet future financial commitments, which aids year on year growth” compared to sole proprietors.

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Disadvantages of a Private Limited Company

  • The statutory compliance are high.
  • Requires a high setup cost as compare to others
  • The involvement of other Directors in the decision making

Our Package Include

  • DSC and Director Identification Number (DIN
  • Company Name Reservation
  • Articles of Association (AOA) and Memorandum of Association (MOA)
  • Corporate Identification Number (CIN)

Documents Required for Company Registration

  • Identity Proof of the Director
  • Address Proof of the Director
  • Specimen signature (blank document with signature [directors only])
  • Scaned passport-sized photograph (of director)
  • Address Proof of Business Premises (eg: Rent agreement, leased deed, purchase deed/sale deed/ property deed.)
  • Utility Bill (eg: Water bill, electricity bill)


Step 1

Digital Signature Certificate (DSC)

Directors of the private limited Company should have a digital signature and digital signature will use to file the registration, ROC compliance forms, and Tax returns.
Step 2

Director Identification Number (DIN)

When a Digital signature is approved, and you will get an approval email from the Registrar of companies that you are now eligible to be a director of a company. It takes 1-2 working days to approve DIN
Step 3

Name Reservation

After DIN Allotment we will proceed to file a Name approval application to ROC on your behalf.
Step 4

Final Incorporation and CIN

After Name approval from the Registrar of Companies, we will file incorporation form with all supporting documents. Registrar of companies takes 3 working days to complete the approval process of a company