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Anoop KrishnanFounder of EIGHTH DAY FORGE
“It's rare to find a service provider who makes the process feel personal—Silversix Consultant absolutely did. From day one, they patiently explained every detail without any jargon, making it easy to understand and stress-free. There was zero chasing, no delays-just efficient, smooth execution all the way through. I felt supported, heard, and confident at every step of registering my company EIGHTH DAY FORGE (OPC) Private Limited. Thanks to Mr. Sriram and his wonderful team.”
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Experienced legal experts in company formation and corporate law.
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Kickstart your venture with efficient company setup, generally processed within a week.
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Personal manager by your side, every step of the way and beyond.
Complete Documentation
We handle all paperwork and ensure full legal compliance.
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Start your company with professional help - setup support from ₹999. Typically completed in 6 working days
HERE'S HOW IT WORKS
1. Fill the Form
Simply fill the above form to get started.
2. Call to discuss
Our startup expert will connect with you & complete legalities.
3. Start Your Company
Get professional assistance with company incorporation.
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Digital Signature Certificate (DSC)
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Company PAN & TAN
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*Government fees are additional and vary based on company structure
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Silversix Consultant Prime
An all-inclusive solution for startups and expanding enterprises seeking a streamlined, compliant incorporation process.
Key Benefits
Personalised support from dedicated incorporation specialists.
Application prepared and filed within 2 days.
24/7 customer assistance.
Important Notes
We strive to register your preferred business name whenever feasible.
Alternative name suggestions are provided if the preferred name is not approved.
Package includes first-year compliance services: auditor appointment, annual filings, and related obligations.
PRIVATE LIMITED COMPANY REGISTRATION - AN OVERVIEW
Private Limited Company Registration is the gold standard for startups and growing businesses in India. Governed by the Companies Act, 2013 and regulated by the Ministry of Corporate Affairs (MCA), a Private Limited (Pvt Ltd) Company offers a robust legal structure with separate legal identity, limited liability protection, and perpetual succession. It is the most preferred entity for entrepreneurs aiming to raise funds, offer Employee Stock Options (ESOPs), and build a scalable global brand.
The Online Company Registration process in India has been revolutionized by the MCA's SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) web form. This integrated system allows for a seamless application for Name Reservation, Director Identification Number (DIN), Digital Signature Certificate (DSC), and Incorporation. Upon successful verification by the Registrar of Companies (RoC), you receive a Certificate of Incorporation (CoI), along with the company's PAN, TAN, and DINs.
Choosing a Pvt Ltd structure also opens doors to government initiatives like Startup India, which offers tax exemptions and easier compliance norms. Whether you are a tech startup, a manufacturing unit, or a service provider, registering as a Private Limited Company enhances your credibility with banks, investors, and clients.
At Silversix Consultant, we make Private Limited Company Registration fast, affordable, and 100% digital. Our team of expert Chartered Accountants (CAs) and Company Secretaries (CSs) guides you through every step—from name approval to final incorporation and post-registration compliance. We handle the paperwork so you can focus on what matters most: growing your business.
What is a Private Limited Company?
A Private Limited Company (Pvt Ltd) is the most popular legal structure for businesses in India, offering a perfect balance between ownership control and liability protection. It is a privately held business entity where the liability of the members is limited to the number of shares they hold. This means that if the company faces financial distress, the personal assets of the shareholders (like their home or car) remain safe and cannot be used to pay off business debts.
Governed by the Companies Act, 2013, a Private Limited Company is recognized as a separate legal entity distinct from its owners. This status allows the company to own property, incur debts, and sue or be sued in its own name. It is the preferred choice for startups, growing SMEs, and businesses planning to raise venture capital or angel investment, as investors prefer the transparency and structured governance of a Pvt Ltd company.
Unlike a Public Limited Company, a Pvt Ltd company cannot trade its shares publicly on stock exchanges. However, it offers perpetual succession, meaning the company continues to exist even if the directors or shareholders change, die, or retire. This ensures long-term stability and credibility for your brand.
Key Characteristics as per Companies Act, 2013:
Limited Liability:
Shareholders are financially responsible only up to the unpaid value of their shares. Personal wealth is fully protected.
Number of Members:
Requires a minimum of 2 members to start and can have up to 200 members. This flexibility supports business expansion.
Separate Legal Existence:
The company is a juristic person in the eyes of the law, capable of owning assets and entering contracts independently.
Restricted Trade:
Shares cannot be sold to the public, ensuring that control remains within a close group of trusted shareholders.
Did You Know?
Over 90% of startups in India choose to register as a Private Limited Company because it is the only structure that allows for Employee Stock Ownership Plans (ESOPs) and easy Foreign Direct Investment (FDI), making it the best choice for high-growth businesses.
Types of Private Limited Companies:
Aspiring entrepreneurs and business professionals planning to register a company in India
should familiarize themselves with the major types of private limited company structures
available under Indian company law.
Company Limited by Shares:
This is the most common type, where the liability of shareholders is limited to the
value of the shares they hold, as defined in the Memorandum of Association. It protects
personal assets while allowing capital contribution through shares.
Company Limited by Guarantee:
Members agree to contribute a predetermined amount - called a guarantee - in case the
company faces liquidation. This type is often used by non-profit organizations where
active capital contribution isn't necessary.
Unlimited Companies:
In this structure, members bear unlimited liability for the company's debts and obligations.
While the business enjoys a separate legal identity, personal assets may be at risk during
financial insolvency. These companies are rarely used but are legally recognized under Indian law.
Understanding these company types is essential before initiating the private limited company
registration process in India, as each offers unique benefits and legal implications
based on your business goals.
What Are the Key Features of a Private Limited Company?
A Private Limited Company is designed to offer stability, scalability, and legal protection. Here are the standout features that make it the preferred choice for millions of businesses in India:
1. Limited Liability
The most significant advantage. Shareholders' liability is limited to their share capital. Personal assets are 100% safe from business risks.
2. Separate Legal Entity
The company has its own identity. It can own assets, sue, and be sued in its own name, distinct from its directors and shareholders.
3. Perpetual Succession
The company enjoys uninterrupted existence. It continues to operate even in the event of the death, insolvency, or exit of any member.
4. Easy Transferability
Ownership can be transferred by transferring shares. This makes it easy to bring in new partners or sell the business.
5. Borrowing Capacity
Pvt Ltd companies enjoy higher credibility with banks and financial institutions, making it easier to secure loans and credit facilities.
6. Owning Property
Being a juristic person, the company can acquire, own, enjoy, and alienate property in its own name.
7. Management & Ownership
Separation of management and ownership allows professionals to manage the company while shareholders enjoy the profits.
8. Dual Relationship
A person can be a shareholder (owner) and a director (employee) at the same time, earning both dividends and a salary.
9. FDI Allowed
100% Foreign Direct Investment (FDI) is allowed in many sectors under the automatic route, attracting global investors.
10. Brand Value
The "Pvt Ltd" tag adds immense prestige and trust to your business name, attracting better customers and talent.
Benefits of Registering a Private Limited Company:
Why do successful entrepreneurs choose the Private Limited structure? It's not just about compliance; it's about unlocking growth potential. Here are the compelling benefits:
Asset Protection
Your personal savings and property are completely safe. In a Pvt Ltd company, liability is strictly limited to the company's assets.
Credibility & Trust
The "Pvt Ltd" suffix is a mark of corporate prestige. It builds instant trust with customers, vendors, and potential partners.
Easy Fundraising
Investors (VCs and Angels) only invest in Pvt Ltd companies. It allows you to issue equity shares in exchange for capital.
Tax Benefits
Enjoy lower corporate tax rates (22% for existing, 15% for new manufacturing) and tax holidays under the Startup India scheme.
Attract Top Talent
Only Pvt Ltd companies can offer Employee Stock Option Plans (ESOPs), a powerful tool to attract and retain high-quality employees.
Global Expansion
With 100% FDI allowed, it's the easiest structure for foreign companies to set up a subsidiary or invest in India.
Join thousands of successful businesses registered with Silversix Consultant!
Difference Between Private Limited Company and Other Business Structures:
Choosing the right business structure is the first step towards success. While a Private Limited Company (Pvt Ltd) is the most popular choice for startups due to its funding potential and limited liability, other structures like Limited Liability Partnership (LLP) or Sole Proprietorship might suit smaller businesses. Below is a detailed comparison to help you make an informed decision.
Key Feature
Private Limited Company
Public Limited Company
LLP (Limited Liability Partnership)
Sole Proprietorship
Partnership Firm
Applicable Law
Governed by Companies Act, 2013
Governed by Companies Act, 2013
Regulated under LLP Act, 2008
No formal governing Act
Regulated under Partnership Act, 1932
Ownership Structure
2 to 200 shareholders
Unlimited public shareholders
Minimum 2 partners
Single owner/operator
2 to 50 partners
Liability Protection
Liability limited to shareholding
Liability limited to shareholding
Limited to capital contribution
Owner bears unlimited liability
Partners have unlimited liability
Legal Entity Status
Recognized as separate legal entity
Recognized as separate legal entity
Recognized as separate legal entity
Not a separate legal entity
Not a separate legal entity
Registration
Mandatory registration with ROC
Mandatory registration with ROC
Registration required under MCA
No registration required
Optional registration
Minimum Capital
No minimum capital requirement
High minimum capital threshold
No minimum capital requirement
Funded by owner's savings
No capital restrictions
Taxation
Corporate tax (22%-30%)
Corporate tax rates apply
Flat 30% on profits
Taxed as personal income
Taxed as individual income
Compliance
High compliance, annual reporting
Very high compliance with disclosures
Moderate compliance requirements
Minimal compliance burden
Minimal compliance burden
Governance
Managed by appointed directors
Controlled by board of directors
Run by designated partners
Fully controlled by owner
Jointly managed by all partners
Ownership Transfer
Transfer restricted and needs approval
Ownership freely transferable
Transfer subject to partnership terms
Not transferable
Requires partner consent
Business Continuity
Perpetual succession
Continues regardless of ownership changes
May dissolve if not reconstituted
Ends with owner's death or exit
Dissolves unless reformed
FDI (Foreign Investment)
Permitted in most sectors
Permitted with sectoral caps
Allowed with government approval
Foreign investment not permitted
Foreign investment not permitted
Best For
Startups, growth-focused companies
Established, large enterprises
Service-based or professional firms
Independent professionals, shop owners
Small family-run businesses
Examples
Swiggy, Zomato
Infosys, TCS
Legal or IT consulting firms
Freelancers, local vendors
Traditional retail stores
Pros and Cons of Registering a Private Limited Company:
Explore the comprehensive pros and cons of forming a Private Limited Company (Pvt Ltd) in India. This table provides an in-depth comparison of essential factors such as limited liability, fundraising capability, compliance responsibilities, and business continuity to help you make an informed decision for your startup or business venture.
Aspect
Advantages
Disadvantages
Limited Liability
Shareholders' personal assets are protected. For example, if a shareholder invests ₹5 lakhs, they are not liable beyond this, even if the business incurs a ₹50 lakh loss.
For certain financial arrangements, directors may need to provide personal guarantees, which can expose them to personal financial risk.
Separate Legal Entity
Operates independently from its owners. For instance, ABC Pvt Ltd can own assets like property and enter into contracts in its own name.
Maintaining this legal status requires submitting formal documents like MOA and AOA, along with annual filings.
Perpetual Succession
The company continues to exist despite any changes in ownership. Example: A Pvt Ltd business passed seamlessly to the next generation.
Share transfers involve legal procedures and approvals, making urgent transitions less flexible.
Fundraising Potential
Attracts angel investors and venture capitalists easily. Example: XYZ Pvt Ltd raised ₹2 crores by issuing equity shares.
Equity is limited to 200 shareholders, restricting large-scale public investments.
Business Credibility
The “Pvt Ltd” suffix increases brand credibility and trust. Many clients and vendors prefer working with Pvt Ltd entities.
Mandatory disclosure of financials may expose sensitive data like profit margins to competitors.
Tax Advantages
Eligible for benefits under government startup schemes. For instance, some tech startups save up to ₹10 lakhs under tax exemptions in the first few years.
Corporate tax returns and audits must be filed regularly, increasing the company's administrative burden.
Flexible Ownership
Shares can be transferred or sold, enabling investor exits or onboarding new partners easily. Example: DEF Pvt Ltd welcomed new investment via share transfer.
Approvals are required for share transfers, which can slow down decision-making in time-sensitive situations.
Professional Management
Clearly defined director roles ensure systematic governance. Example: ABC Pvt Ltd avoided internal disputes through board-assigned duties.
Collective decision-making can delay responses, especially in startups requiring fast execution.
Continuity and Expansion
Facilitates long-term planning and scalability. Example: XYZ Pvt Ltd expanded globally without altering its core structure.
Dissolving the company is legally complex and can be time-consuming and costly.
Compliance Standards
Strict reporting ensures transparency, building trust. For example, ABC Pvt Ltd secured large contracts by demonstrating regulatory compliance.
Failure to meet compliance can result in heavy fines, disqualification of directors, or legal actions.
Cost of Formation
Initial setup costs are justified by long-term returns. Example: ABC Pvt Ltd spent ₹50,000 on registration but earned ₹10 lakhs in the first year.
Higher formation and annual maintenance costs compared to sole proprietorships or partnerships due to legal and audit requirements.
Minimum Requirements for Private Limited Company Registration:
At least 2 shareholders are required
Minimum 2 directors must be appointed
Shareholders and directors can be the same individuals
One director must be an Indian resident
Recommended authorized capital is ₹20,000 (INR Twenty Thousand)
Director Identification Number (DIN) is mandatory for all directors
Digital Signature Certificate (DSC) required for 2 promoters and 1 witness
What Are the Documents Required for Registering a Private Limited Company?
To ensure a smooth and rejection-free registration process, it is critical to have the correct set of documents. The Ministry of Corporate Affairs (MCA) requires identity and address proof for all directors and shareholders, along with proof of the registered office address. Here is the complete checklist of documents required for Private Limited Company Registration:
Category
Document Type
Specific Examples
Purpose
For Indian Nationals
Identity Proof
PAN Card (Mandatory), Aadhaar Card, Passport, Voter ID, Driving License
Establishes the identity of directors and shareholders as per the Companies Act, 2013
Address Proof
Recent Utility Bills or Bank Statements (not older than 2 months)
Verifies residential address of Indian directors or shareholders
For Foreign Nationals
Identity Proof
Passport (Mandatory)
Primary document for verifying foreign shareholder or director identity
Address Proof
Driver's License, Bank Statement, or Residence Permit
Confirms current address of foreign individuals involved in the company
For Corporate Shareholders
Board Resolution
Signed resolution passed by the company's board
Authorizes investment in the proposed Private Limited Company
Certificate of Incorporation
Official certificate from the registrar of companies
Proof of legal existence of the corporate entity
Registered Office Proof
Utility Bill or Property Tax Receipt (not older than 30 days)
Verifies the corporate entity's registered office address
Rent Agreement / No Objection Certificate (NOC)
Rental agreement or NOC from the property owner
Grants permission to use the premises as registered office
For Company Registration
Memorandum of Association (MOA)
Document defining company objectives and scope
Outlines the business purpose and range of operations
Articles of Association (AOA)
Governing document of internal rules and structure
Provides clarity on company governance and decision-making
Consent & Declarations
Form INC-9 and DIR-2 (Director's consent & compliance declaration)
Indicates willingness and legal agreement to act as director
Digital Signature Certificate (DSC)
Issued for each proposed director
Enables secure and legally recognized electronic filings with MCA
Common Across All Categories
Director Identification Number (DIN)
Issued by MCA to every director
Unique number required for legal compliance and filings
Passport-Size Photograph
Recent photos of directors and shareholders
Used for identification and incorporation formalities
Step-by-Step Process for Private Limited Company Registration
Registering a company in India is now a fully online process. At Silversix Consultant, we handle the entire lifecycle of your company incorporation, ensuring zero rejections and fast approval. Here is the roadmap:
Step 1: Digital Signature Certificate (DSC)
The first step is to obtain DSCs for all proposed directors. Since the process is online, the DSC is used to sign the incorporation forms digitally. We help you get Class-3 DSCs from authorized certifying agencies.
Step 2: Director Identification Number (DIN)
Every director needs a unique identification number called DIN. We apply for DIN for up to 3 directors directly through the SPICe+ incorporation form.
Step 3: Name Approval (RUN Service)
We help you choose a unique name for your company and check its availability on the MCA portal. We can apply for name reservation separately via the RUN (Reserve Unique Name) service or directly with the incorporation form.
Step 4: Filing SPICe+ Form
This is the main incorporation form. We file the SPICe+ (Part B) form along with the Memorandum of Association (MOA) and Articles of Association (AOA). This single form also applies for PAN, TAN, GST, EPFO, and ESIC registration.
Step 5: Certificate of Incorporation (CoI)
Once the Registrar of Companies (RoC) verifies and approves the documents, they issue the Certificate of Incorporation (CoI). This document is the legal proof of your company's existence.
Step 6: PAN, TAN & Bank Account
Along with the CoI, you will receive the company's PAN and TAN. The bank account opening process is also initiated automatically through the SPICe+ form with partner banks.
Get your company registered in just 7-10 days with Silversix Consultant!
Mandatory MCA Compliance Checklist for Private Limited Companies in India:
Registering your Private Limited Company is just the first step. To maintain legal validity and avoid penalties, it's crucial to comply with the Ministry of Corporate Affairs (MCA) regulations. Regular filings, audits, and statutory meetings ensure your company stays compliant, credible, and audit-ready. Here's a comprehensive table outlining all essential MCA compliance requirements for Private Limited Companies:
Aspect
Compliance Requirement
Frequency
Why It's Important
Annual Return Filing
File Form MGT-7 containing details of shareholders, directors, and business activities.
Annually (within 60 days of AGM)
Ensures accurate record-keeping with MCA and reflects company governance.
Financial Statements
Submit Form AOC-4 including balance sheet, profit & loss account, and auditor's report.
Annually (within 30 days of AGM)
Discloses financial performance and builds stakeholder confidence.
Board Meetings
Hold a minimum of 4 board meetings per financial year with a maximum 120-day gap.
Quarterly
Supports transparent decision-making and strong corporate governance.
Annual General Meeting (AGM)
Conduct AGM to approve financials, appoint auditors, and discuss key resolutions.
Annually (by September 30th)
Fosters shareholder involvement and statutory accountability.
Director KYC
Submit Form DIR-3 KYC to validate and update director details in MCA records.
Annually
Prevents disqualification and ensures up-to-date information with MCA.
Income Tax Filing
File Form ITR-6 declaring income, deductions, and tax liabilities.
Annually
Mandatory under Income Tax Act to maintain tax compliance and avoid penalties.
Statutory Audit
Conduct a financial audit by a Chartered Accountant registered with ICAI.
Annually
Verifies financial integrity and ensures legal accuracy of accounts.
TDS Filing
File quarterly TDS returns if the company has deducted tax on payments.
Quarterly
Ensures accurate tax deduction and deposit with the government.
Compliance Certificate
Obtain a certificate from a practicing Company Secretary (for companies with paid-up capital above ₹10 crore or turnover above ₹50 crore).
Annually
Confirms that the company complies with applicable provisions of the Companies Act.
Commencement of Business
File Form INC-20A to declare the commencement of business activities.
Within 180 days of incorporation
Mandatory to activate business operations and access funding legally.
DIN Update
Keep Director Identification Numbers (DINs) of all directors updated in MCA records.
Ongoing
Required for MCA filings and to retain active DIN status.
Why Choose Silversix Consultant for Pvt Ltd Registration?
100% Online Process: No physical visits required. Complete registration from anywhere.
Transparent Pricing: No hidden charges. Starting at just ₹999.
Fast Incorporation: Get your company registered in as fast as 6 days.
Expert Support: Dedicated CA/CS support throughout the process.
End-to-End Service: From name approval to GST registration and bank account opening.
Startup India Assistance: Guidance on DPIIT recognition and tax benefits.
FAQs on Private Limited Company Registration
Setting up a Private Limited Company in India is a major achievement for any aspiring entrepreneur. With expert guidance and the right resources, the company registration process can be simple, fast, and hassle-free. Whether you're wondering how to fill out the SPICe+ form, what essential documents are required for company registration, or what to expect after incorporation - we're here to help.
To simplify your journey, we've compiled answers to the most frequently asked questions about Private Limited Company registration. These clear and concise FAQs are designed to guide you through each step with confidence. Discover everything you need to know and take the first step toward launching your dream business today.
As per the Companies Act, 2013, registering a Private Limited Company in India requires a minimum of two directors, two shareholders, and at least one Indian resident director.
Capital refers to the investment made by shareholders in the company. Authorised capital is the maximum amount up to which shares can be issued and is declared during incorporation. Paid-up capital is the actual amount received in the company's bank account from shareholders, against which share certificates are issued.
No. Once the company is incorporated, a corporate bank account must be opened. The share capital can be deposited within two months from the date of incorporation.
Yes, a Private Limited Company can operate multiple businesses as long as the activities are included in the Memorandum of Association (MoA) and approved by the Registrar of Companies (RoC).
For Directors/Shareholders: PAN card, Aadhaar card/Passport, and current address proof (utility bill or bank statement).
For Company Registration: Digital Signature Certificate (DSC), Memorandum of Association (MoA), Articles of Association (AoA), and proof of registered office address.
For Corporate Shareholders: Board Resolution and Certificate of Incorporation.
Yes, Non-Resident Indians (NRIs) and foreign nationals can become directors in a Private Limited Company, provided there is at least one Indian resident director.
Yes, you can use your residential address as the registered office for your Private Limited Company. However, all official communication from the RoC and government will be sent to this address.
MoA (Memorandum of Association) outlines the company's objectives and scope of activities. AoA (Articles of Association) defines the internal rules and regulations, including director powers, meeting procedures, and governance framework. These legal documents are drafted by professionals during the incorporation process.
No, a commercial office space is not mandatory. You can use a residential or rented home address as your registered office. The address can be updated later by notifying the RoC once you shift to a commercial or corporate office.
No, a Private Limited Company requires at least two directors and two shareholders. However, a single individual can opt for a One Person Company (OPC), which offers similar benefits and allows a sole shareholder.
SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) is an integrated e-form introduced by the Ministry of Corporate Affairs (MCA) to streamline the company registration process in India. It offers multiple services in a single application, including:
Company name reservation
Director Identification Number (DIN) allotment
PAN and TAN issuance
EPF and ESIC registration
Opening of a business bank account
Using SPICe+ ensures faster processing, fewer errors, and simplified compliance for startups and businesses.
Registering a Private Limited Company usually takes around 10 to 15 working days, depending on document readiness and approval from the Ministry of Corporate Affairs (MCA). Timely submission of accurate documents can speed up the registration process.
Once your company is successfully registered, you should:
Open a current bank account in the company's name
File INC-20A for the Certificate of Commencement within 180 days
Appoint a statutory auditor within 30 days of incorporation
Ensure ongoing annual compliance like board meetings and ROC filings
These steps are crucial to activate your business legally and maintain good standing.
No, a company seal is no longer mandatory for Private Limited Companies under the revised Companies Act. Digital and physical signatures on legal documents are considered valid.
A Digital Signature Certificate (DSC) is an encrypted digital key used to sign electronic documents securely. It is compulsory for signing e-forms such as SPICe+ and other filings during the company registration process in India.
If your proposed name is not approved by the MCA, you can reapply with an alternate name through the SPICe+ form. There are no additional government fees for resubmission if done within the permitted resubmission window.
To ensure smooth and timely registration of your company:
Submit all documents accurately and in the correct format
Choose a unique, MCA-compliant company name
Respond to MCA queries or resubmissions promptly
Working with professionals can also prevent common registration errors.
Private Limited Companies must meet annual compliance obligations, which include:
Holding a minimum of four board meetings per year
Filing Annual Returns via Forms AOC-4 and MGT-7
Filing Income Tax Returns using ITR-6
Completing Director KYC via Form DIR-3 KYC
Maintaining proper accounting records and statutory registers
Timely compliance avoids legal issues and ensures smooth operations.
Failure to meet statutory compliance requirements may result in:
Late filing penalties and fines
Legal notices from the MCA
Disqualification of directors
Company status being marked as inactive or struck off
Regular compliance ensures legal safety and financial health of the business.
No, a Private Limited Company is not allowed to raise capital from the public. It can, however, raise funds through private placements, venture capitalists, angel investors, or loans from financial institutions.
Private Limited Companies can benefit from lower corporate tax rates (currently 22%), startup tax exemptions under Section 80-IAC, and other deductions available through various government initiatives for eligible companies.
Director: Responsible for managing the company's day-to-day operations and ensuring legal compliance.
Shareholder: Holds equity in the company but may not be involved in its daily functioning.
Limited liability means shareholders are only responsible up to the amount they invested. Personal assets remain protected from business debts or losses beyond their shareholding.
Yes, salaried individuals can be directors in a Private Limited Company, subject to any restrictions in their employment agreement.
GST registration is compulsory if:
Annual turnover exceeds ₹40 lakhs (goods) or ₹20 lakhs (services).
Your company deals in inter-state supply of goods or services.
No minimum turnover is required to start a Private Limited Company. You can register and operate even without any initial sales or business activity.
Yes, a Private Limited Company can convert into other structures like an LLP or a Public Limited Company by following the legal procedures outlined in the Companies Act, 2013.
CIN is a 21-character unique identifier assigned to every registered company by the Ministry of Corporate Affairs (MCA). It reveals the company's registration details including state, year, and type of entity.
DIN is a mandatory identification number issued by the MCA for individuals who wish to become directors in Indian companies. It must be quoted in all official documents related to directorship.
Protection through limited liability.
Separate legal identity from owners.
Continuous existence regardless of ownership changes.
Greater funding opportunities from investors and banks.
Eligibility for tax exemptions and incentives.
Higher compliance costs and statutory requirements.
Involves a more detailed registration process.
Requires a minimum of two directors, reducing individual control.
No, Provident Fund (PF) and Goods & Services Tax (GST) are not automatically applicable. They become mandatory only when your business crosses specific thresholds, similar to any other business structure.
Consider a Pvt Ltd structure if you:
Need legal protection for personal assets.
Plan to raise capital through investors or loans.
Are prepared to handle regulatory and tax compliance regularly.
Yes, Private Limited Companies can undertake Corporate Social Responsibility (CSR) activities, especially if they meet the financial criteria outlined under Section 135 of the Companies Act.
Once the company is incorporated, a current account needs to be opened in the name of the company for transactions. Your advisor will guide you through the process of choosing the bank that you want to open the account with and get the documents like certificate of incorporation, Memorandum and Articles of Association, board resolution, copy of PAN allotment letter, and utility bill.
Authorized capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid up capital is the amount of shares issued by the company to shareholders. Authorized capital can be increased any time after incorporation to issue additional shares to the shareholders.
The Board of Directors is required to appoint a practicing Chartered Accountant within 30 days of Incorporating a Private Limited Company.
Shares can be transferred by executing a share transfer deed, board meeting for approval of the transfer and updating the company's records.
Changing Company Name: To change the name of a Private Limited Company, you need to follow the way given by the Ministry of Corporate Affairs in India.
Dividends are distributed to shareholders based on the company's profits and policies, post board approval.
