Private Limited Company
The gold standard for scalable startups and businesses in India under the Companies Act, 2013. A Private Limited Company shields founders from personal liability, allows seamless equity funding (VC/Angel), and supports ESOPs. Mandatory for most regulated tech, fintech, and high-growth sectors.
Key benefits
- Limited Liability Protection: Shields personal assets of directors and shareholders in case of corporate debt or legal disputes.
- Funding Readiness: The only entity structure recognized by Venture Capitalists and Angel Networks for issuing equity and preference shares.
- FDI Permitted: Up to 100% Foreign Direct Investment allowed under the automatic route for most sectors.
- Corporate Tax Rate: Eligible for concessional tax rates (e.g., 15% under Sec 115BAB for new manufacturing, 22% under 115BAA).
- Employee Stock Options (ESOP): Structurally capable of issuing ESOPs to attract and retain top-tier talent.
- Separate Legal Entity: Exists perpetually regardless of changes in directors or shareholders.
- Brand Credibility: Enhances trust with B2B enterprise clients, government tenders, and global suppliers.
- Easy Exit/Transfer: Ownership can be transferred easily by executing share transfer forms.
Documents required
- For Indian Directors: PAN Card (Mandatory).
- For Indian Directors: Aadhaar Card / Voter ID / Passport / Driving License (Identity Proof).
- For Indian Directors: Bank Statement / Electricity Bill / Mobile Bill (Address proof, not older than 2 months).
- For Foreign Directors: Passport (Notarized and Apostilled in home country).
- For Foreign Directors: Address proof like Bank Statement/Utility Bill (Notarized and Apostilled).
- For Registered Office: Recent Utility Bill (Electricity/Water/Gas) in the name of the premises owner.
- For Registered Office: Rent Agreement or Lease Deed (if rented).
- For Registered Office: No Objection Certificate (NOC) from the owner of the premises.
- Passport-size photographs of all proposed directors.
- Digital Signature Certificate (DSC) for all directors (we procure this).
How it works
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1
Consultation & Name Selection
We evaluate your business goals and conduct a deep trademark and MCA database search to ensure your proposed names are highly likely to be approved.
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2
DSC & DIN Generation
Procurement of Class 3 Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) for all founders.
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3
Name Approval (RUN / SPICe+ Part A)
Submission of the selected name to the Central Registration Centre (CRC). Approval typically takes 1-2 working days.
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4
Drafting MOA & AOA
Our corporate lawyers draft the Memorandum of Association (MOA) and Articles of Association (AOA) tailored to your industry.
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5
Filing SPICe+ Part B
Filing of incorporation forms along with AGILE-PRO-S for mandatory PAN, TAN, EPFO, ESIC, and Profession Tax registrations.
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6
Certificate of Incorporation
Issuance of the COI with PAN and TAN by the Registrar of Companies.
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7
Bank Account Opening
Assistance with current account opening using the SPICe+ integrated banking tie-ups.
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8
Post-Incorporation Compliance
Guidance on filing INC-20A (Commencement of Business) and auditor appointment within 30 days.
Frequently asked questions
What is the minimum capital required?
There is no statutory minimum paid-up capital requirement under the Companies Act, 2013. You can start a company with as little as ₹10,000, though ₹1,00,000 authorized capital is standard practice.
Do I need a commercial office space?
No. You can register your company at your residential address. You simply need a utility bill and a No Objection Certificate (NOC) from the property owner.
Can an NRI or Foreign National be a director?
Yes. However, the company must have at least one director who is an Indian resident (has stayed in India for at least 182 days in the previous financial year). Documents of foreign nationals must be apostilled.
What are the mandatory annual compliances?
A Pvt Ltd must conduct a minimum of 4 board meetings annually, file AOC-4 (Financials) and MGT-7 (Annual Return) with the MCA, maintain statutory registers, and undergo a mandatory Statutory Audit by a CA regardless of turnover.
What happens if we don't file the annual returns?
The MCA imposes severe penalties (₹100 per day per form). Continued non-compliance leads to strike-off proceedings and director disqualification for 5 years.
Is GST registration mandatory immediately?
No, unless you are engaged in e-commerce, export/inter-state supply, or cross the ₹20L/₹40L turnover threshold. We apply for it simultaneously only if your business model demands it.
How are funds extracted from the company?
Founders can take out money as Director Salary (subject to TDS), Dividend (subject to dividend distribution tax), or through legitimate expense reimbursements. You cannot freely withdraw cash like a proprietorship.