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Private limited company

"Register your startup as a private limited company with Vyapaar registration at the lowest fees. We are a registered MCA & MSME company, and our experienced CA team will handle all your documentation on the same day."

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Private limited company Registration

"A Private Limited Company is one of the most common business types in India, with around 85% of companies registered under this structure. Over 150,000+ companies are registered every year. It is a separate legal entity offering limited liability and continues to exist even if the owners change, as per the Companies Act, 2013."

Key Features

Private limited company

Regulated under the Companies Act, 2013

Allowed with restrictions.

Mandatory for incorporation.

The company continues despite ownership changes.

Minimum 2, maximum 200.

Foreign investments are permitted under FDI norms.

The company has its own legal identity, separate from shareholders.

Moderate corporate tax rates apply.

Limited liability, protecting shareholders from personal financial risks.

High compliance requirements under corporate laws.

Annual financial audit is mandatory.

Advantages of Private limited company

Shareholders’ personal assets are safe in case the company faces financial issues or has to shut down.

Under the Startup India scheme, you can access benefits like raising funds and subsidies for trademark
registration.

Transferring ownership or subscribing to the company is straightforward and simple.

A company’s value is based on its business, not the owner, making it easier to sell.

A company continues to exist even if the owners change, until it is officially dissolved.

Companies can raise money by selling shares to the public or accepting deposits, making it easier to secure
funding.

Companies can raise money by selling shares toA company can own property and assets independently of its shareholders. the public or accepting deposits, making it easier to secure funding.

Companies can raise money byA company must follow the Companies Act, 2013 and adhere to strict regulations, ensuring proper governance. selling shares to the public or accepting deposits, making it easier to secure
funding.

Companies are often taxed at a lower rate and enjoy better tax benefits compared to other business types.

As a separate legal entity, a company can sue others and be sued in its own name.

Documents for Private limited company Registration

List
Private limited company

Steps

01

Complete the Registration Form & Payment

02

Expert Call for Guidance

03

Drafting of Company Registration Documents

04

Application for DIN & DSC

05

Submission of AOA and MOA

06

Documents Sent to Registrar of Companies (ROC)

07

Finalization of Company Registration

08

Receive Your Company Documents

FAQ

A Private Limited Company requires a minimum of two shareholders and two directors. There is no upper limit on the number of shareholders, but the maximum number of directors is 15.

Typically, it takes about 7 to 10 business days to complete the registration process, depending on the submission of the required documents and the approval from the Registrar of Companies (ROC).

There is no minimum capital requirement to start a Private Limited Company. However, it is common for companies to have an authorized capital of ₹10,000 or more.

Yes, a foreigner can be a shareholder and a director in an Indian Private Limited Company. However, the director must fulfill the criteria of being an Indian resident.

-Yes, changes in directors and shareholders can be made after the company is registered, but they must be legally documented and submitted to the Registrar of Companies (ROC).

-A Private Limited Company is a separate legal entity with shareholders, while an LLP is a partnership with limited liability. Private Limited Companies have more regulatory compliance and are better suited for raising funds, while LLPs are more flexible with fewer compliance requirements.

-The MOA defines the company’s objectives and scope of activities, while the AOA outlines the rules for managing the company, including the rights and duties of directors and shareholders.

-A Private Limited Company is taxed at a lower rate than some other business structures. It can also avail deductions on business expenses and has the advantage of tax exemptions on profits distributed to shareholders.

-No, a Private Limited Company cannot raise funds from the public by issuing shares. However, it can raise capital from private investors, venture capitalists, or through loans.

-Yes, a Private Limited Company can operate from multiple locations, but you will need to register each additional location as a branch or office and update the details with the ROC.

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