Private Limited Company

Private Limited Company Registration – An Overview

A private limited company is a famous business structure in India due to its distinct characteristics. It is a separate legal entity, allowing limited liability protection to its shareholders and protecting their personal assets from business debts. Governed by the Companies Act 2013, a private limited company can be registered with a minimum of two shareholders and a maximum of 200 shareholders.

This structure is suited for businesses aiming to raise funds in the long run. It allows shareholders to transfer shares as per the company's Articles of Association (AOA). Unlike public companies, it cannot offer shares to the public or trade on the stock exchange. Compliance includes audits, annual filings, and governance norms — making it ideal for growing businesses.

What are the Eligibility Criteria for Company Registration?

According to the Ministry of Corporate Affairs, the eligibility criteria to register a company in India includes the following:

Checklist for the Private Limited Company:

• ✔A minimum of two shareholders. Maximum number of shareholders can be 200.
• ✔A minimum of two directors, one of whom must be a resident of India.
• ✔The selected company name must be unique and should not appear similar to an existing business.
• ✔The Registrar of Companies (ROC) must approve the proposed company name.
• ✔Have an official company address.
• ✔A valid Goods and Services Tax (GST) number.
• ✔Register with the Employee Provident Fund (EPF) department.
• ✔Register with the Professional Tax department (if applicable).
• ✔Maintain legal and regulatory compliance including filings and annual returns.
• ✔The company should not be involved in any illegal activity under Indian law.