PVT LTD Company Registration
Plans starting Rs 3,899/- only*
*T&C Apply. Excludes all Govt Fees and Taxes
Plans starting Rs 3,899/- only*
*T&C Apply. Excludes all Govt Fees and Taxes
for
Pvt Ltd Registration
Basic Plan
- Scope of Business
- Instant Filling
- 4 Name Choice
- Application Form
- Documentation Preparation
- DSC Create
- Name Approval
Advanced Plan
- Document Submission
- Form Fill Up
- MCA Document Receiving
- Udyam
- GST
- Everything in Basic
"Preferred Client Combos"
Private Limited Company (Pvt Ltd) Registration in India
A Private Limited Company (Pvt Ltd) is a type of business structure commonly used by small to medium-sized businesses in many countries. It offers the benefits of limited liability to its shareholders and has a separate legal existence from its owners. Here’s an introduction to the key features of a Private Limited Company:
Limited Liability
The personal assets of the shareholders are protected in case the company faces financial losses or liabilities. The shareholders’ liability is limited to the amount they have invested in the company.
- Separate Legal Entity
A Pvt Ltd company is treated as a distinct legal entity, separate from its owners (shareholders) and directors. It can own property, incur debts, enter into contracts, and sue or be sued in its own name.
- Number of Shareholders
A Pvt Ltd company typically requires a minimum of two shareholders and allows a maximum of 200 shareholders, depending on the country's corporate laws.
- Perpetual Succession
The company continues to exist even if there are changes in its ownership or the death of shareholders. The company’s operations are not affected by these changes, ensuring business continuity.
- Restrictions on Share Transfers
The shares of a Private Limited Company cannot be freely transferred like those of a public company. Transfers usually require the approval of other shareholders, making it a more closely-held structure.
- Minimum and Maximum Directors
A Pvt Ltd company requires at least two directors and can have a maximum of 15, although this can be increased with the approval of shareholders.
- Capital Requirements
In many countries, there is no minimum paid-up capital requirement for forming a Pvt Ltd company, though this can vary depending on local regulations.
- Compliance and Regulatory Requirements
A Private Limited Company is required to comply with a range of legal and regulatory obligations, including filing annual returns, maintaining statutory registers, and adhering to tax and financial reporting regulations.
- Ownership and Management Separation
The ownership (shareholders) and management (directors) of a Pvt Ltd company are distinct. The shareholders appoint directors to manage the day-to-day operations, although in some cases, the shareholders themselves may act as directors.
- Taxation
Pvt Ltd companies are taxed as separate legal entities. They may be eligible for certain tax benefits and incentives depending on the jurisdiction. The tax rates applicable to companies can vary based on income levels and applicable laws.
1. Limited Liability: Personal assets of shareholders are protected.
2. Easy to Raise Capital: Easier to attract investment from venture capitalists and angel investors.
3. Credibility: Businesses structured as Pvt Ltd companies tend to have higher credibility among clients, suppliers, and investors.
4. Perpetual Succession: The Company continues its existence regardless of changes in ownership.
5. Ownership Flexibility: Shares can be transferred with some restrictions, ensuring control over the entry of new shareholders.
1. Identity Proof: PAN card of the director.
2. Address Proof: Aadhaar card, passport, or voter ID.
3. Registered Office Proof: Rent agreement and utility bill of the business address.
4. Nominee’s Consent: Written consent from the nominee.
Pvt Ltd registration in India is an excellent option for entrepreneurs seeking a corporate structure while enjoying the flexibility and simplicity of sole proprietorship.
1. What is a Private Limited Company?
A Private Limited Company (Pvt Ltd) is a type of company where the liability of shareholders is limited to their shares, and the business has a separate legal identity from its owners. It is governed by the Companies Act, 2013 in India.
2. What are the basic requirements for registering a Pvt Ltd company in India?
- Minimum 2 Directors (at least one must be a resident of India)
- Minimum 2 Shareholders (can be the same as directors)
- Registered Office Address within India
- Digital Signature Certificate (DSC) for directors
- Director Identification Number (DIN) for all directors
- A unique name that does not infringe on any trademarks
3. What is the minimum capital requirement for forming a Pvt Ltd company in India?
There is no minimum paid-up capital requirement for a Pvt Ltd company under the Companies Act, 2013. You can start a Pvt Ltd company with any amount of capital.
4. What are the benefits of forming a Private Limited Company?
- Limited Liability: Protects the personal assets of shareholders.
- Separate Legal Entity: Distinct from its owners, meaning it can own property, enter into contracts, and sue/be sued.
- Perpetual Succession: The Company continues its existence regardless of changes in ownership or management.
- Credibility: Greater credibility in the eyes of customers, banks, and investors.
- Easy to Raise Capital: Can issue shares to raise capital from investors.
- Tax Advantages: Eligible for various tax benefits and deductions.
5. How long does it take to register a Pvt Ltd company in India?
The entire registration process can take around 7 to 15 working days, depending on how promptly documents are submitted and approvals from the RoC.
6. Can a foreign national or an NRI be a director of a Pvt Ltd company in India?
Yes, foreign nationals, NRIs (Non-Resident Indians), or Foreign Companies can be directors or shareholders in a Private Limited Company. However, at least one director must be a resident of India.
7. Can a Pvt Ltd company be converted to a public company?
Yes, a Private Limited Company can be converted to a Public Limited Company by altering its Articles of Association (AoA), increasing the number of shareholders, and complying with other requirements under the Companies Act, 2013.
8. How many shareholders can a Pvt Ltd company have?
A Pvt Ltd company can have a minimum of 2 and a maximum of 200 shareholders.
9. What is the difference between a Pvt Ltd company and a public company?
- Pvt Ltd Company: Shares cannot be publicly traded; it has a limit of 200 shareholders.
- Public Company: Shares can be traded on a stock exchange, and there is no limit on the number of shareholders.
10. What are the compliance requirements for a Pvt Ltd company in India?
- Annual General Meeting (AGM): Must be held within 6 months of the financial year-end.
- Annual Filing: Submission of financial statements, balance sheets, profit & loss statements, and annual returns to the Registrar of Companies.
- Income Tax Returns: Must be filed annually.
- Audits: Statutory audits must be conducted annually.
- Board Meetings: At least 4 board meetings must be held in a financial year.
11. What are the taxation rules for a Pvt Ltd company in India?
Pvt Ltd companies in India are taxed at a flat rate of 22% (without exemptions) or 15% for new manufacturing companies. They are also subject to Minimum Alternate Tax (MAT) at 15% if applicable. Additionally, companies must collect and pay GST (Goods and Services Tax) if their turnover exceeds ₹40 lakhs.
12. Can a Private Limited Company issue shares to the public?
No, a Pvt Ltd company cannot offer its shares to the public. Shares are issued privately and are subject to restrictions on transfer.
13. How can a Pvt Ltd company raise funds?
Pvt Ltd companies can raise funds through:
- Equity Financing: Issuing new shares to investors.
- Debt Financing: Borrowing from banks or financial institutions.
- Angel Investors and Venture Capitalists: Attracting investors based on the business model.
- Convertible Debentures: Raising funds by issuing debentures that can later be converted into equity.