Private Limited Company

Private Limited Company Registration

A Private Limited Company is a privately held business structure for small enterprises, known for its simplicity compared to other legal entities. Governed by the Companies Act 2013 and Companies Incorporation Rules 2014, it limits members' liability to their shareholdings. Operating with a minimum of two Directors, this company type prohibits public trading of its shares.

Characteristics of Private limited Company

  • Individual partners in a Private Limited Company benefit from limited liability.
  • This company type enjoys perpetual succession, unaffected by the demise of its individuals.
  • Personal assets of individuals remain safeguarded even if the company faces losses.
  • The Board of Directors oversees the management of the Private Limited Company.
  • No obligation exists for the Private Limited Company to maintain an index of its members.


  • A minimum of two shareholders and directors are required.
  • Having a registered office address is mandatory for the proposed company.
  • Deciding on the paid-up and authorized capital is essential.
  • Both directors and subscribers need a DSC (Digital Signature Certificate).
  • Directors must have a DIN (Directors Identification Number).

Documents required for Private limited company registration

For Indian Citizen Directors or Shareholders, provide:

  • Aadhaar card
  • PAN Card
  • Address proof (Recent Bank statement, Mobile phone bill, or electricity bill)
  • Passport size photo

For Foreign National Directors or Shareholders, provide:

  • Passport photocopy
  • Address Proof
  • Nationality proof
  • Two passport-sized photographs


  • Rental agreement if the office is leased
  • Electricity bill
  • NOC (No-objection certificate) from the landlord if the office is not leased.


The minimum required paid-up capital for a private limited company is Rs. 1 lakh, but it can be increased as per MCA regulations.

No specific professional or educational qualifications are necessary to become a Director or Shareholder. Any individual who is of sound mind, an adult, and an Indian citizen can initiate a company.

Yes. The private limited company can take FDI.

ROC compliances for Private Limited Companies:

Form ADT-1:

The Board appoints the First Auditor within 30 days of Incorporation, serving until the 1st AGM's conclusion.

Form MGT-7:

All registered companies in India must file Form MGT-7 annually. It's an electronic form by the MCA to report annual details. It should be filed within 60 days from the Annual General Meeting.

Form AOC 4:

Private Limited Companies must file their Balance Sheet along with the profit or loss account and Director Report using Form AOC 4 within 30 days of the Annual General Meeting.

A DSC (Digital Signature Certificate) is a valid digital signature under the Information Technology Act. It's utilized for electronically signing the necessary e-forms required to file with the MCA (Ministry of Corporate Affairs).

MOA stands for Memorandum of Association, outlining a company's constitution with essential details. It's a fundamental document for every company, showcasing its allowed business scope. The MOA serves as a guide for creditors and shareholders, defining the company's permitted activities.

AOA, or Articles of Association, provides the internal management rules for a company. It outlines tasks to be accomplished within the company, such as appointing Directors and managing financial records, setting guidelines for its internal functioning.

The Director holds the responsibility of efficiently managing the company.

DIN stands for Director Identification Number. Anyone aspiring to be a company Director needs a DIN. Once approved, the DIN holds lifetime validity.

Yes. An individual can become Director in more than one company.