Private Limited Company Process: Understanding the basic concept behind the term private ltd company is the first step towards understanding how to register and operate one.

 A company is a corporate personhood or an entity formed under law, by a group of individuals with a common goal of operating a business that can either be a commercial or an industrial enterprise. This legal entity may be formed in various ways for financial as well as taxation purposes depending on the corporate law of jurisdiction. They are generally organized to earn a profit while some may be organized as non-profit charities. Now, a limited company is one where the shareholders of the Company have limited liability towards the Company i.e. only extend up to their individual stakes in the company. Now, this type can again be categorized as public and private.


The basic difference between a public limited company and a private limited company lies in the minimum as well as the maximum number of members and directors allowed and the transferability of shares. In a public limited company, shares are freely transferrable while they are restricted in the case of a private limited company. A structured analysis below mentions the differences in detail.

FeaturesPublic limited companyPrivate limited company
Minimum members72
Minimum directors32
Maximum membersUnlimited200
Minimum capitalRs. 7Rs. 2
Invitation to publicYesNo
Issue of prospectusYesNo
Quorum at AGM5 Members2 Members
Certificate for commencement of Business (Mandatory)YesYes
The term used at the end of the nameLtd.Pvt Ltd.

Thus, as per section 2(68) of the Companies Act, 2013, a private limited company is a company having a minimum paid-up share capital as is prescribed, and which, restricts the right to transfer its shares; except in case of a One Person Company, limits the number of its members to 200 and prohibits any invitation to the public to subscribe for any securities of the company.

The Pre-requisites of Starting A Private Ltd. Company


There are certain requirements that you need to fulfill before you can go on, to begin with, the registration process of your company.

Name of the company

Selecting a proper name for your company is quite a technical task since the name you select must be unique and no other company should exist by the same name. While deciding on a name, three aspects must be kept in mind:

  1. Main name
  2. Activity to be carried out
  3. Mention of ‘Private Ltd Company’ at the end

 Thus, to ensure minimum hassle and maximum efficiency, send in 2 unique names to the Registrar of Company (ROC) for approval.

Members and Directors

The minimum and maximum number of members allowed must be followed strictly as mentioned above and along with that, the directors must meet the following conditions:

  1. Every director must have a Director Identification Number (DIN) allotted by the Ministry of Corporate Affairs. However, a maximum of three DINs is allotted by the MCA along with the application of Incorporation.
  2. One of the directors must be a resident of India i.e. he/she must have lived in India for more than 182 days in the previous calendar year.

Registered Office Address

Any Company must have a permanent address for its office which can be filed with the registrar while the incorporation of the company or within 30 days once its registration is done successfully.

Documents Required for Private Limited Company Registration

Documents Required for Private Limited Company Registration

The documents required for private ltd company registration with Indian subscribers and Directors are as follows-

  • Identification Proof: PAN Card.
  • Address Proof: In addition to the PAN Card copy the proposed Director must submit an address proof. The following documents are acceptable address proof for Indian Nationals; Aadhaar Card/ Passport/ Election Card or Voter Identity Card/ Driving License
  • Residential Proof: In addition to the address proof, residential proof must be submitted during the incorporation of the Company to validate the current address of the Director. The proofs must not be older than two months. The following documents are acceptable residential proof;
  • Bank Statement
  • Electricity Bill
  • Telephone Bill
  • Mobile Bill
  • Registered Office Proof: In addition to providing identity, address, and residential address, proof must be provided to validate the registered office address of the Company.
  • The authorization from the Landlord (Name mentioned in the Electricity Bill or Gas Bill or Water Bill or Property Tax Receipt or Sale Deed) to use the premises by the company as its registered office. This is usually referred to as NOC from Landlord; AND
  • Proof of evidence of any utility service like telephone, gas, electricity, etc. depicting the address of the premises in the name of the owner or document, which is not older than two months.
  • In case of an owned property, a copy of sale deed or property deed.
  • Others: A few other documents such as passport size photo, specimen signature, and other basic details of directors and subscribers are required.

Time required to register a company

The entire process which includes takes around 7 working days. Although, in recent times, the whole process of registration of a limited company has become a quite fast process, as every application form is consolidated into one single application form with MCA. It is quite a big step towards the growth of the economy, promoting startups, and also for businesses that are looking forward to expanding their operations.

In Conclusion…

The process of registering a private limited company involves a lot of rules to be followed meticulously. It can be achieved however with proper guidance. A wise decision would be to consult the right professional for smooth growth.

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