PRIVATE LIMITED COMPANY (PVT. LTD.) REGISTRATION

1. Introduction

A Private Limited Company (Pvt. Ltd.) is a separate legal entity under the Companies Act, 2013, which allows a business to operate with limited liability, a distinct corporate identity, and ownership shared among a small group of shareholders. It is popular for startups, SMEs, and growing businesses due to credibility, fundraising ability, and investor confidence.

2. Key Features of a Private Limited Company

• Separate legal entity
• Limited liability for shareholders
• Minimum 2 shareholders and 2 directors
• Maximum 200 shareholders
• Perpetual succession
• Shares cannot be freely transferred to the public
• Name ends with 'Private Limited'
• High credibility and investor confidence

3. Advantages of Private Limited Company

• Limited Liability Protection
• Separate Legal Entity
• Easy Fundraising
• Perpetual Existence
• Professional Image
• Ownership Flexibility
• Tax Benefits

4. Eligibility Criteria

• Minimum 2 directors and 2 shareholders
• Maximum 200 shareholders
• At least 1 Indian resident director
• Unique company name approved by MCA
• Registered office in India

5. Documents Required for Registration

• For Directors/Shareholders: PAN, Aadhaar, Photo, Email, Mobile, Address Proof
• For Registered Office: Utility Bill, Rent Agreement, NOC
• Other Documents: Subscriber Sheet, MOA, AOA

6. Registration Procedure

1. Obtain DSC
2. Obtain DIN
3. Name Approval via RUN/SPICe+
4. File Incorporation Forms (SPICe+ Part B)
5. Certificate of Incorporation
6. PAN & TAN
7. Open Bank Account

7. Contents of MOA & AOA

• MOA (Memorandum of Association): Company name, registered office, objectives, liability of members, capital structure & shareholding
• AOA (Articles of Association): Internal rules, management, rights & duties of shareholders, appointment/removal of directors, dividend & meeting rules

8. Compliance After Registration

• Annual General Meeting (AGM) if applicable
• Annual Return (Form MGT-7)
• Financial Statement (Form AOC-4)
• Income Tax Return
• GST Registration if applicable
• Maintain statutory registers and minutes
• Update changes in directors/shareholding (Forms DIR-12, SH-7)

9. Taxation

• Corporate Tax: 22% (new regime) / 25% (turnover < ₹400 crore)
• Dividend Distribution Tax abolished
• MAT applicable if profits exceed threshold

10. Advantages over OPC & LLP

• Private Limited: Separate entity, 2–200 shareholders, easy fundraising, high credibility
• OPC: Separate entity, 1 shareholder, limited fundraising, moderate credibility
• LLP: Separate entity, no max limit, moderate fundraising, moderate credibility

11. When to Choose Private Limited Company

• Startups planning to raise investment
• Businesses targeting large clients
• Companies planning expansion/multiple branches
• Tech & product-based startups
• Professional firms requiring corporate credibility

12. Conclusion

Private Limited Company Registration is preferred for businesses seeking credibility, scalability, investor funding, and legal protection. Properly drafted MOA & AOA along with strict compliance ensures smooth operation and long-term growth.