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Private Limited (F)

Private Limited Company

A private limited company is a privately-held business entity. It is held by private stakeholders. The liability arrangement in these is that of a limited partnership, wherein the liability of a shareholder extends only up to the number of shares held by them.

With the startup ecosystem booming across the country and more and more people looking to do something on their own, there is a need to be well-acquainted with different business registration types i.e sole proprietorship, limited liability company and private limited company. In this article, we will talk about different sides of a private limited company.

  1. There is a Limited risk to personal assets in a Private Limited Company.
  2. Ltd. Co. is a Separate Legal Entity.
  3. In the Private Limited Company, there would Limited Liability for members.
  4. Shares of a company limited by shares are transferable by a shareholder to any other person. The transfer is easy as compared to the transfer of interest in business run as a proprietary concern or a partnership
  5. Just as one person can bring a legal action in his/her own name against another in that person’s name, a company being an independent legal entity can sue and be sued in its own name.
  6. A company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved.
  7. For a private company, the earlier minimum number of the share capital was Rs. 1,00,000, but now there is no such minimum capital compulsion. Therefore there is no pressure on fund requirements.
  1. Higher Administration Costs
  2. Limited Personal Control
  3. Restricts The Transfer Ability Of Shares
  4. Members In Any Case Cannot Exceed 200
  • Obtain digital signature: -A company before incorporation must apply for a digital signature. A digital signature is required to copy all the documents and certificates.
  • Obtain director identification number: Under sec 159 of the companies act it is required for every director to obtain an identification number from the central government. Name approval: Every company must think of a unique name for its company. Every company has to submit the list of 5-6 names in accordance with the preference to ROC i.e. registrar of the company
  • Preparation of MOA and AOA: Memorandum of association and articles of association must be prepared by the company. MOA is a document containing the objectives and powers of the company.
  • Application for the incorporation: After completing all the above-mentioned steps you can file an application for incorporation of the company. The application should be filed with the registrar of the company with form 7 and form 22. Form 7 is a detailed statement about the company’s memorandum of association and articles of association. Proof of residential address, proof of identity, NOC if there is a change in promoters, pan card should also be attached with the application.
  • Receiving the certificate: If after the filing of all the above documents the registrar is satisfied with all the documents then he will issue a certificate of incorporation in form 11. After receiving this certificate the company can move to other steps information of the company

All about Private limited Company

Private limited

As the name suggests, a private limited company is a privately-held business entity. It is held by private stakeholders. The liability arrangement in a private limited company is that of a limited partnership, wherein the liability of a shareholder extends only up to the number of shares held by them. The shareholders cannot be held liable beyond the value of the shares. The governing body for such a company is the Ministry of Corporate Affairs (MCA).


Section 2 (68) of the Companies Act, 2013 defines a private company as:

“A Company having a minimum paid-up share capital as may be prescribed, and which by its articles,—

  • Restricts the right to transfer its shares;
  • Except in case of One Person Company, limits the number of its members to two hundred;
  • Prohibits any invitation to the public to subscribe for any securities of the company.”


Disadvantages of Private limited 

  • Registration Process Private limited company registration average takes about 10 – 20 days. Hence, registering a private limited company involves a process and costs which are not applicable to an unregistered entity like proprietorship. However, once registered, the private limited company enjoys a wide variety of powers and rights, making the process of an opening a bank account or getting a payment gateway, easy. Proprietorship or partnership firms often encounter difficulty post-registration while having to open a bank account or obtain a payment gateway, as they are considered to be unregistered business entities.
  • Compliance Formalities: A private limited company requires a range of compliance post-incorporation. All companies are required to hold board meetings, general meetings, get the accounts audited, maintain a statutory register and file an annual return with the Ministry of Corporate Affairs each year. In addition to the corporate compliance formalities, a company would also have to maintain compliance with tax and labor laws, which are applicable irrespective of the type of business entity.
  • Division of Ownership: A major disadvantage of a private limited company is that it requires a minimum of two persons to act as Directors and shareholders. So, any sole entrepreneur who wishes to start and operate a business by him/herself cannot start a private limited company. Hence, any major decision to be taken by a company would always require the consent of two persons. The company would also need to have two shareholders, even if one person holds a negligible amount of shareholding.




INR 9,999/-

One Time Fee

  • Company Incorporation
  • PAN & TAN
  • PF & ESI Registration
  • GST Registration
  • MSME Registration
  • Bank A/c.

Service Provide Within 7 Days


INR 14,999/-

One Time Fee

  • Company Incorporation
  • PAN & TAN
  • PF & ESI
  • GST Registration
  • Shop & Establishment Registration
  • MSME Registration
  • Trade Mark Registration
  • Logo Design
  • Opening Bank A/c.

Service Provide Within 15 Days


INR 29,999/-

Yearly Fee

  • Annual PVT LTD Compliances
  • Yearly Baisc GST Compliances
  • Income Tax Return

Services Provided Before the Due Date

Frequently Asked Questions

Yes, a small business can incorporate their business under private limited company registration in India. It provides them with the credibility, assurance and an image of their business before financial institution, suppliers and potential clients. It helps the company to get the funding, Business loans at minimum compliance from banks or potential clients while entering into the deals.

  • No, professional or educational qualification is required to become a shareholder in the private limited company. Any individual in the capacity of the person, with the sound of mind, can start a company.

A person who want to become director of company, he has to first apply DIN through the Ministry of Corporate Affairs and submit the required documents related to Identity and Address Proof. Once the Ministry verifies these documents, the DIN will be allotted to the person 

Any address whether its own of rented/leases premises, and where company hold Annual general meeting, for keeping audited books of accounts and other correspondence from all the statutory/government authorized. Registered office of company determine the jurisdiction of for registrar of company.

Yes, A company can change its registered office of any time by following specified procedure. It can be within same state or different state.

Ans: MOA Mean for Memorandum of Association whereas AOA means Articles of Association. Both these documents act as an important source of information for various shareholders and other stakeholders associated with a Company.

MOA, It reveals the name, aims, objectives, registered office address, clause regarding limited liability, minimum paid up capital and share capital of the Company. In short, it explains the relationship of a Company with the outside world.

AOAs are the necessary documents to be submitted when the company is incorporated with the Registrar of Companies (ROC). When AOAs are in conjunction with the MOA, they are called the Constitution/Rule and Regulation of the Company

Yes, Rule 27 of Companies (Management & Administration) Rules 2014 says that A Listed Company or a Company having more than 1000 Shareholders shall maintain Records in electronic Format. However all the other Companies are required to maintain statutory records in the form of registers, minutes etc. throughout its life.