A Private Limited Company is a separate legal entity with limited liability for its shareholders. It is the most common structure for startups and growing businesses.
Who it suits
Founders who want limited liability, a credible structure for customers and banks, and the option to bring in investors later.
Basic requirements
- At least 2 directors, of whom at least one must be a resident in India (generally 182 days or more in India in the previous year).
- At least 2 shareholders, and no more than 200.
- A unique company name that follows the naming rules.
- A registered office address in India.
- There is no minimum paid-up capital requirement.
Documents typically needed
- PAN and Aadhaar (or other ID) of every director and shareholder.
- Passport-size photographs and email/phone details.
- Address proof of directors.
- Registered office proof, such as a rent agreement with the owner's NOC, plus a recent utility bill.
The process
- Digital signature certificates (DSC) for the directors.
- Name approval through the MCA portal.
- Filing the incorporation form (SPICe+) with the Memorandum and Articles of Association.
- Certificate of Incorporation with the company identification number; PAN and TAN are allotted along with it.
- Opening the company bank account and filing the commencement-of-business declaration within the prescribed time.
Registration typically takes 7–10 working days, depending on document readiness and ROC processing.
Yearly compliance
A private company must keep books of account, appoint an auditor, hold board and annual meetings, file annual financial statements and annual return with the Registrar of Companies, and file its income tax return every year.
Common questions
Can one person own a Private Limited Company?
No. A private company needs at least two shareholders. A single owner can consider a One Person Company.
Is a minimum capital required?
No. The law does not prescribe a minimum paid-up capital for a private company.