Private Limited Company
Most popular structure for startups seeking VC funding.
A Private Limited Company is India's most popular structure for startups and growing businesses. It offers limited liability, a separate legal identity, easy fundraising and strong credibility. CASYST manages the whole incorporation for you, from name approval to your certificate and bank account.
What is Private Limited Company?
A Private Limited Company is a privately held company incorporated under the Companies Act, 2013. It has a minimum of two directors and two shareholders, and the shareholders' liability is limited to the value of their shares.
It is a separate legal entity, so it can own assets, enter contracts and continue to exist regardless of changes in ownership. It is also the structure most investors and lenders prefer.
Who needs Private Limited Company?
- Startups planning to raise funding from investors
- Businesses that want limited liability and a professional image
- Founders who want to issue shares or employee stock options
- Companies planning to scale, hire and enter larger contracts
If you are a solo founder without plans to raise capital, a One Person Company or proprietorship may cost less to run. We compare them with you first.
Benefits of Private Limited Company
Limited liability
Shareholders' personal assets are generally protected from company debts.
Easy to raise funds
Investors and banks prefer this structure and can invest through shares.
Separate legal entity
The company holds assets and contracts in its own name and continues beyond its owners.
Credibility
A registered company inspires confidence with customers, vendors and partners.
Ownership flexibility
Shares can be transferred and new investors admitted without closing the business.
Eligibility
- At least two directors, one of whom is resident in India
- At least two shareholders, with a maximum of 200
- Every director needs a DIN and a Digital Signature Certificate
- A registered office address in India
Documents required
- PAN card and Aadhaar card of all directors and shareholders
- Passport-size photographs of directors
- Address proof such as a bank statement, utility bill or driving licence
- Proof of registered office address, with NOC from the owner
- Digital Signature Certificates for the directors
- Proposed company names and business objectives
Private Limited Company process
- 1Step 1
DSC and DIN
We arrange Digital Signature Certificates and director identification numbers.
- 2Step 2
Name approval
We check and reserve a company name that meets the naming rules.
- 3Step 3
Prepare MoA and AoA
We draft the Memorandum and Articles of Association describing your business and internal rules.
- 4Step 4
File incorporation
We file the incorporation application and forms with the Ministry of Corporate Affairs.
- 5Step 5
Certificate of Incorporation
You receive the certificate with your company's CIN, PAN and TAN.
- 6Step 6
Bank account and commencement
We guide you on opening the current account and filing the declaration required to begin business.
Compliance after incorporation
- File the declaration for commencement of business within the time limit
- Appoint an auditor and file the intimation with the Registrar
- Hold board meetings and an annual general meeting and keep minutes
- File financial statements and the annual return every year
- File income tax and GST returns and complete director KYC
Types of companies in India
Private limited company
Privately held, limited liability, restricted share transfer.
Public limited company
Can invite the public to invest and list its shares.
One Person Company
A company with a single member.
Section 8 company
A non-profit company for charitable objects.
DSC, DIN, MOA and AOA
DSC
A digital signature used to sign incorporation forms.
DIN
A unique number that identifies each director.
MOA
Memorandum of Association sets out the company's objects.
AOA
Articles of Association set the internal rules of the company.
Choosing the company name
- The name should end with Private Limited
- It must not be identical or too similar to an existing company or trademark
- It should reflect your business without restricted words
- Check availability on the MCA portal before you apply
Certificate of Incorporation and company number
Once the Registrar approves the application, you receive a certificate of incorporation. It carries your company's Corporate Identification Number, or CIN, which identifies the company on all filings, alongside its PAN and TAN.
How long does company registration take?
Timelines depend on document readiness and on how quickly the authority reviews and responds, so we give you an estimate for your case at the start and keep you updated at each stage.
Private Limited vs OPC vs LLP
| Point | Private Limited | OPC | LLP |
|---|---|---|---|
| Members | Two or more | One | Two or more |
| Raising funds | Easiest | Restricted | Limited |
| Compliance | Higher | Moderate | Lighter |
Related services
Private Limited Company cost
Our Private Limited Company package starts from ₹13,999. Government fees, stamp duty and other statutory charges are separate and depend on your state and the exact filing involved. We give you a clear, itemised quote before we start, with no hidden charges.
Get a QuotePrivate Limited Company checklist
- DSC and DIN
- Name approval
- Prepare MoA and AoA
- File incorporation
- Certificate of Incorporation
- Bank account and commencement
Frequently asked questions
At least two directors and two shareholders. A director can also be a shareholder, and at least one director must be an Indian resident.
No minimum paid-up capital is required, but the authorised capital you choose affects fees and stamp duty.
Annual accounts, an audit, financial statement and annual return filings with the Registrar, and income tax return filing. We can manage all of these.
Yes, subject to the foreign investment rules. At least one director must be an Indian resident.
It depends on name approval and document verification, and is typically a matter of several working days once documents are complete.
Ready to register Private Limited Company?
Join 500+ businesses who leverage CASYST for seamless, high-integrity legal operations.