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Call ExpertStarting a private limited company in India is a preferred option for entrepreneurs aiming to establish professional and recognised businesses. Governed by the Companies Act, 2013, and regulated by the Ministry of Corporate Affairs (MCA), this business structure offers benefits like limited liability, enhanced credibility, and growth opportunities.
The process involves submitting the SPICe+ form, obtaining Digital Signature Certificates (DSC) for directors, and securing Director Identification Numbers (DIN). Once approved by the Registrar of Companies (RoC), your business receives a Certificate of Incorporation, making it a separate legal entity. This allows the company to own assets, sign contracts, and operate independently.
After incorporation, compliance is vital for smooth operations. This includes registering for GST, applying for PAN and TAN, and filing annual returns and audits. These requirements not only meet statutory obligations but also build trust with investors and stakeholders.
A private limited company is the ideal choice for entrepreneurs seeking scalability, structured growth, and funding opportunities. While the process may involve challenges like name approvals or regulatory steps, expert guidance ensures a seamless experience.
At Vakilsearch, we handle every step of the registration process, from documentation to compliance, so you can focus on growing your business confidently and efficiently.
A private limited company (commonly abbreviated as Pvt Ltd) is considered a separate legal entity from its owners, offering a secure framework for operations while safeguarding the personal assets of its members. This business structure, governed by the Companies Act, 2013, is popular among entrepreneurs and small to medium-sized businesses (SMEs) for its combination of limited liability protection, ownership control, and scalability.
For instance, startups like Swiggy began as private limited companies due to their ability to secure venture capital funding while maintaining limited liability for founders.
Unlike public companies, a private limited company restricts the transfer of shares and operates with a focused group of stakeholders. This makes it ideal for businesses seeking operational independence, confidentiality, and long-term growth.
Definition as per the Companies Act, 2013
Section 2(68) of the Companies Act, 2013, defines a Private Limited Company as an entity that:
A Private Limited Company provides an ideal business structure that combines legal protections, operational flexibility, and growth opportunities, making it a preferred choice for entrepreneurs and small to medium-sized businesses. Here are the 10 key features and 7 benefits of a Private Limited Company.
Shareholders’ liability is limited to the unpaid amount of their shares. This safeguards personal assets from business liabilities.
The company is treated as an independent entity, allowing it to own property, sue, and be sued in its own name.
The company continues to exist irrespective of changes in ownership or member status, ensuring continuity in business operations.
Requires at least 2 members and allows up to 200 members, making it suitable for small and medium-sized enterprises (SMEs).
Shares can only be transferred within the group, ensuring control over ownership and decision-making.
Entrepreneurs can register a private limited company in India without any mandatory requirement for minimum capital investment.
A Private Limited Company offers a range of advantages, making it a preferred choice for entrepreneurs and growing businesses. From ease of raising capital to legal protections, here’s why businesses opt for this structure:
Ability to offer Employee Stock Ownership Plans (ESOPs) makes it attractive for skilled professionals.
Management has full control over business decisions without interference from external parties.
A Private Limited Company offers limited liability protection to its shareholders, making it one of the most popular business structures for entrepreneurs in India. The registration process requires submitting key documents, adhering to compliance regulations, and opening a current account for financial transactions. Here’s a detailed breakdown of the steps involved:
A Digital Signature Certificate (DSC) is mandatory for filing electronically signed documents with the Ministry of Corporate Affairs (MCA). The DSC ensures the authenticity of all filings and transactions. Our team will assist you in procuring your DSC from a certified authority on your behalf.
The Director Identification Number (DIN) is a unique ID required for individuals intending to serve as directors of a company. It is issued by the MCA. We will handle the DIN application process for you by filing the necessary forms on the MCA portal.
The SPICe+ form is an integrated online form that simplifies the incorporation process by including multiple services:
The Certificate of Incorporation is issued by the Registrar of Companies (ROC) as proof that your company is officially registered. Once the certificate is received, we will:
The cost of registering a sole proprietorship starts from ₹699, covering the basic registration process. Additional fees may apply based on location, legal requirements, and any extra services selected. For a detailed cost estimate tailored to your needs, please consult with our registration experts.