1. What is a Private Limited Company?

A Private Limited Company (Pvt Ltd) is a business entity privately held by a small group of people. It is registered under the Companies Act, 2013 and governed by the Ministry of Corporate Affairs (MCA). It enjoys limited liability, separate legal identity, and restrictions on share transferability.

• Minimum Members: 2 (maximum 200)
• Minimum Directors: 2 (maximum 15)
• Foreign Nationals: Allowed as shareholders/directors (one must be Indian resident)
• No minimum paid-up capital required (earlier ₹1 lakh)
• Perpetual succession — continues despite member changes

2. Benefits of a Private Limited Company

1. Limited Liability Protection — personal assets are safe.
2. Separate Legal Entity — distinct from shareholders.
3. Access to Funding — preferred by VCs and investors.
4. Easy Transfer of Ownership — shares can be transferred.
5. Perpetual Existence — unaffected by member exit/death.
6. Brand Credibility — higher trust among clients & lenders.
7. Tax Benefits — lower corporate tax rates and deductions.

3. Legal Requirements for Incorporation

a) Members & Directors

• Minimum 2 members & 2 directors (same individuals allowed).
• At least 1 director must be a resident of India.

b) Documents Required

For Indian Nationals:

• PAN Card, Aadhaar Card
• Passport-size Photograph
• Address Proof (latest utility bill/bank statement)

For Foreign Nationals:

• Passport (notarized & apostilled)
• Address Proof (notarized & apostilled)
• Photograph

For Registered Office:

• Electricity Bill/Water Bill/Property Tax Receipt
• Rent Agreement (if rented) + NOC from landlord

4. Step-by-Step Process of Registration

1. Obtain DSC — Digital Signature for directors/shareholders.
2. Apply for DIN — Director Identification Number via SPICe+ form.
3. Name Reservation — through RUN service or SPICe+ Part A.
4. Draft MoA & AoA — company objectives & management rules.
5. File SPICe+ Part B — includes incorporation, PAN, TAN, GST.
6. Certificate of Incorporation — MCA issues COI with CIN.

5. Post-Incorporation Formalities

• Open bank account in company name
• Apply for GST registration (if applicable)
• Issue share certificates within 60 days
• Maintain statutory registers
• Appoint auditor within 30 days
• Hold first board meeting within 30 days
• File Commencement of Business (INC-20A) within 180 days

6. Annual Compliances

• Minimum 2 Board Meetings annually
• Annual General Meeting (AGM)
• ROC Filings — AOC-4 (Financials), MGT-7 (Annual Return)
• File Income Tax Return yearly
• Maintain proper books of accounts

7. Comparison with Other Structures

8. Cost & Timeline

• Government + Professional Fees: ₹7,000 – ₹15,000 approx.
• Timeline: 7–10 working days (subject to MCA approval).

9. Common Mistakes to Avoid

• Choosing a conflicting company name/trademark.
• Improperly drafted MoA & AoA.
• Delaying mandatory compliances.
• Mixing personal and company finances.

10. Why Choose RegistrationMART?

• Expert advisory on structure & compliance
• Fast and hassle-free incorporation
• Transparent pricing, no hidden costs
• Post-registration support (GST, ROC filings, legal docs)

Conclusion

Registering a Private Limited Company is the best choice for entrepreneurs seeking credibility, funding, and scalability. Though the MCA has simplified the digital incorporation process, compliance still requires expert handling. RegistrationMART ensures smooth company formation, compliance management, and long-term growth support.