Companies Incorporated
Customer satisfaction
Years of Combined Team Experience
A Private Limited Company in India is a corporate structure that provides significant advantages, such as limited liability for its shareholders and legal limitations on the transfer of shares.
This business entity is highly favored by entrepreneurs due to its strong legal credibility, potential for growth, and appeal to investors.
| Feature | Private Limited (Ltd) | LLP | One Person Co. (OPC) |
|---|---|---|---|
| Minimum members | 2 directors, 2 shareholders | 2 partners | 1 director, 1 shareholder |
| Maximum shareholders | 200 | Unlimited partners | 1 (single owner) |
| Limited liability | ✓ Yes | ✓ Yes | ✓ Yes |
| Separate legal entity | ✓ Yes | ✓ Yes | ✓ Yes |
| Raise equity funding | ✓ Yes | No | No |
| Foreign investment (FDI) | ✓ Yes | Restricted | No |
| Investor credibility | High | Medium | Medium |
| Compliance burden | High | Moderate | Low |
| Audit mandatory | Always | If turnover > ₹40L | Always |
| Share transfer | Restricted (AOA governed) | As per LLP agreement | Not applicable |
| Best suited for | Startups, scalable businesses | Professionals, services | Solo founders |
Better Tax Planning Opportunities :The government may offer tax incentives, deductions, or exemptions to private limited companies based on applicable laws and policies.
Every Private Limited Company registered in India is allotted a Corporate Identification Number (CIN) by the Registrar of Companies (ROC). This is a 21-character alphanumeric code issued at the time of incorporation and acts as the company’s official identity across government records.
The CIN helps identify key registration details of a company, such as its legal status, business activity, state of registration, year of incorporation, and company type.
These numbers represent the nature of the company’s economic activity or industry classification
Once the SPICe+ incorporation application is approved, the Ministry of Corporate Affairs (MCA) issues the Certificate of Incorporation. This certificate is sent via email and includes the company’s CIN, PAN, and TAN.
The Certificate of Incorporation is official proof that the company has been legally registered. It contains essential information such as the company name, registration number, incorporation date, registered office address, and company structure.
The first meeting of the Board of Directors must be conducted within 30 days from incorporation. Thereafter, the company is required to hold at least four board meetings every year, ensuring that the gap between two meetings does not exceed 120 days.
Every private limited company must conduct an AGM once in each financial year. The meeting should be held during business hours, at the registered office, on or before 30th September, unless extended by authorities.
The first statutory auditor must be appointed within 30 days of incorporation. The appointed auditor will hold office until the conclusion of the first AGM.
Form ADT-1 must be filed with the Registrar of Companies within 15 days of appointing the auditor for subsequent terms.
The company must file its annual returns, including Form AOC-4 within 30 days of the AGM and Form MGT-7 within 60 days of the AGM.
Private limited companies are required to file their income tax return every year using Form ITR-6, irrespective of profit or loss.
All directors must complete DIR-3 KYC annually to confirm and update their personal and contact details with the MCA.
Charges applicable for issuing a DSC to directors and subscribers.
Fee for reserving the proposed company name with the Ministry of Corporate Affairs.
Government charges for submitting incorporation-related forms with the MCA.
Applicable stamp duty based on the state in which the company is registered.
To start a Private Limited Company in India, you need:
Common documents include:
SPICe+ is an integrated MCA form used for:
Post-incorporation compliances include:
Failure to comply may lead to:
A Private Limited Company is subject to:
The process includes:
After incorporation, the company must:
The cost depends on:
