Private Limited Company – India's most versatile business structure
A Private Limited Company is the most widely used business structure in India. Governed by the Companies Act, 2013 and regulated by the Ministry of Corporate Affairs (MCA), it provides limited liability, separate legal identity, and the ability to raise funding – making it the default choice for startups, growing businesses, and foreign-owned Indian entities alike.
A Pvt Ltd can have 2 to 200 shareholders. At least one director must be an Indian resident. There is no minimum paid-up capital requirement. It can accept FDI under the Automatic Route in most sectors, issue ESOPs, and raise angel or VC funding. For any business that intends to grow, raise capital, or eventually receive foreign investment, a Private Limited Company is almost always the right structure.
Our difference from low-cost incorporation platforms: we are a CA firm. We don't just file the MCA forms – we advise on the right MOA objects clause, share capital structure, director appointments, and post-incorporation compliance calendar before the Certificate of Incorporation is issued. Getting this right at inception saves months of amendment work later.
Why a Private Limited Company is the right choice
Shareholders are liable only for the unpaid amount on their shares. Personal assets are protected from company debts.
Accepts foreign investment under Automatic Route in most sectors. Can issue equity to angel investors and VCs without restriction.
Can issue Employee Stock Options to build and retain a team. ESOPs require a board resolution – we set this up at incorporation if needed.
The company continues to exist regardless of changes in shareholders or directors. Not dependent on any individual.
Corporate customers, banks, and government agencies prefer dealing with a Pvt Ltd over a proprietorship or partnership.
Corporate tax rate of 25.17% (22% base + surcharge + cess) for domestic companies. Lower than partnership tax in many cases.
How Private Limited Company registration works
We check trademark conflicts, MCA name availability, and regulatory restrictions. Name reserved through MCA's RUN (Reserve Unique Name) system. We advise on the MOA objects clause – getting this right determines what your company can legally do.
All proposed directors require DSCs. For Indian nationals, this takes 1 - 2 working days. For foreign nationals, apostilled documents are required.
Each director requires a DIN from MCA. For new directors with no existing DIN, we apply through SPICe+ simultaneously.
The main incorporation form – MOA, AOA, registered office address, PAN, TAN, and GSTIN applied simultaneously. Certificate of Incorporation (CIN) issued in 7 - 12 working days of document submission.
Current account opened. Share capital deposited. GST registration completed. Auditor appointed. Compliance calendar handed over.
Complete incorporation – not just MCA filing
What Private Limited Company registration costs
Timeline: 7 - 12 working days for standard cases. Cases involving foreign shareholders or restricted sectors take longer.
What founders get wrong at incorporation
The MOA objects clause determines what your company can legally do. Founders often choose a generic clause and then find it doesn't cover their actual business activity – requiring a costly MGT-14 amendment. We advise on the objects clause before filing.
Authorised share capital affects stamp duty – many founders minimise it to save Rs.2,000 in stamp duty, then face problems when raising the first investor round because the authorised capital is too low to issue shares.
Within 30 days of incorporation: auditor appointment (ADT-1), bank account opened. Within 60 days: registered office confirmation (INC-22A). Miss these and your company goes non-compliant before it has done a single transaction.
If there's any chance of a foreign investor or co-founder joining later, the initial structure should be FDI-ready – right sector classification, clear shareholding pattern, no issue that would create complications under FEMA at a later stage.
Private Limited Company registration – common questions
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Senior CA reviews your situation and gives you a clear structure recommendation. No commitment. Written summary after the call.