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			<h1 class="post-title-alt">
				Private Limited Company (Pvt Ltd): Definition, Meaning, How to Register &amp; Documents Required			</h1>
			
				
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							<a href="https://razorpay.com/learn/what-is-a-private-limited-company/" class="meta-item date-link"><time class="post-date" datetime="2024-11-26T16:54:51+05:30">November 26, 2024</time></a>

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							<span class="meta-item read-time">14 Mins Read</span>
					
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<p class="ez-toc-title">Table of Contents</p>
<span class="ez-toc-title-toggle"><a class="ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle" style="display: inline;"><i class="ez-toc-glyphicon ez-toc-icon-toggle"></i></a></span></div>
<nav><ul class="ez-toc-list ez-toc-list-level-1"><li class="ez-toc-page-1 ez-toc-heading-level-2"><a class="ez-toc-link ez-toc-heading-1" href="#What-Is-a-Private-Limited-Company" title="What Is a Private Limited Company?">What Is a Private Limited Company?</a></li><li class="ez-toc-page-1 ez-toc-heading-level-2"><a class="ez-toc-link ez-toc-heading-2" href="#Private-Limited-Company-Examples" title="Private Limited Company Examples">Private Limited Company Examples</a></li><li class="ez-toc-page-1 ez-toc-heading-level-2"><a class="ez-toc-link ez-toc-heading-3" href="#Characteristics-of-a-Private-Limited-Company" title="Characteristics of a Private Limited Company">Characteristics of a Private Limited Company</a></li><li class="ez-toc-page-1 ez-toc-heading-level-2"><a class="ez-toc-link ez-toc-heading-4" href="#Types-of-Private-Limited-Company" title="Types of Private Limited Company">Types of Private Limited Company</a></li><li class="ez-toc-page-1 ez-toc-heading-level-2"><a class="ez-toc-link ez-toc-heading-5" href="#Characteristics-of-a-Private-Limited-Company-2" title="Characteristics of a Private Limited Company">Characteristics of a Private Limited Company</a></li><li class="ez-toc-page-1 ez-toc-heading-level-2"><a class="ez-toc-link ez-toc-heading-6" href="#Requirements-to-Start-a-Private-Limited-Company" title="Requirements to Start a Private Limited Company&nbsp;">Requirements to Start a Private Limited Company&nbsp;</a></li><li class="ez-toc-page-1 ez-toc-heading-level-2"><a class="ez-toc-link ez-toc-heading-7" href="#List-of-Documents-Required-for-Private-Limited-Company" title="List of Documents Required for Private Limited Company">List of Documents Required for Private Limited Company</a></li><li class="ez-toc-page-1 ez-toc-heading-level-2"><a class="ez-toc-link ez-toc-heading-8" href="#How-to-Register-Pvt-Ltd-Company-A-Step-by-Step-Guide" title="How to Register Pvt Ltd Company? A Step-by-Step Guide">How to Register Pvt Ltd Company? A Step-by-Step Guide</a></li><li class="ez-toc-page-1 ez-toc-heading-level-2"><a class="ez-toc-link ez-toc-heading-9" href="#What-Are-the-Registration-Costs-for-a-Private-Limited-Pvt-Ltd-Company" title="What Are the Registration Costs for a Private Limited (Pvt Ltd) Company?">What Are the Registration Costs for a Private Limited (Pvt Ltd) Company?</a></li><li class="ez-toc-page-1 ez-toc-heading-level-2"><a class="ez-toc-link ez-toc-heading-10" href="#What-Is-the-Registration-Timeline-for-a-Private-Limited-Company" title="What Is the Registration Timeline for a Private Limited Company?">What Is the Registration Timeline for a Private Limited Company?</a></li><li class="ez-toc-page-1 ez-toc-heading-level-2"><a class="ez-toc-link ez-toc-heading-11" href="#Advantages-of-Private-Limited-Companies" title="Advantages of Private Limited Companies">Advantages of Private Limited Companies</a></li><li class="ez-toc-page-1 ez-toc-heading-level-2"><a class="ez-toc-link ez-toc-heading-12" href="#Disadvantages-of-Private-Limited-Companies" title="Disadvantages of Private Limited Companies">Disadvantages of Private Limited Companies</a></li><li class="ez-toc-page-1 ez-toc-heading-level-2"><a class="ez-toc-link ez-toc-heading-13" href="#FAQs" title="FAQs">FAQs</a></li></ul></nav></div>
<h2><span class="ez-toc-section" id="What-Is-a-Private-Limited-Company"></span><b>What Is a Private Limited Company?</b><span class="ez-toc-section-end"></span></h2>
<p><span style="font-weight: 400;">A private limited company is a privately held business entity held by private stakeholders. The liability arrangement, in this case, is that of a limited partnership, wherein the liability of a shareholder extends only up to the number of shares held by them.</span></p>
<p><span style="font-weight: 400;">Private limited company definition as per Section 2 (68) of the Companies Act, 2013 is <strong>A Company having a minimum paid-up share capital as may be prescribed and which, by its articles</strong></span></p>
<p><span style="font-weight: 400;">1. Restricts the right to transfer its shares</span></p>
<p><span style="font-weight: 400;">2. Except in case of One Person Company, limits the number of its members to two hundred</span></p>
<p><span style="font-weight: 400;">3. Prohibits any invitation to the public to subscribe for any securities of the company.</span></p>
<p><span style="font-weight: 400;">With the startup ecosystem booming across the country and more and more people looking to do something on their own, there is a need to be well-acquainted with different business registration types, i.e. sole proprietorship, limited liability company, and private limited company.&nbsp;</span></p>
<h2><span class="ez-toc-section" id="Private-Limited-Company-Examples"></span><b>Private Limited Company Examples</b><span class="ez-toc-section-end"></span></h2>
<p>Here are some examples of private limited companies in India</p>
<ul data-hveid="CCkQAQ" data-ved="2ahUKEwjK77muh-CHAxXUzjgGHdNQKBYQm_YKegQIKRAB">
<li class="PZPZlf" data-attrid="SGEListItem">Google India Pvt. Ltd.&nbsp;A subsidiary of Google LLC</li>
<li class="PZPZlf" data-attrid="SGEListItem">Amazon Retail India Private Limited:&nbsp;An online shopping platform</li>
<li class="PZPZlf" data-attrid="SGEListItem">Microsoft Corporation (India) Private Limited: An information technology company with its registered office in Delhi.<b style="color: #111111; font-family: Roboto, Arial, sans-serif; font-size: 1.6315em;"></b></li>
</ul>
<h2><span class="ez-toc-section" id="Characteristics-of-a-Private-Limited-Company"></span><b><a href="https://razorpay.com/rize/company-registration/private-limited?utm_source=learn_articles&amp;utm_medium=CTA_Button&amp;utm_campaign=what_is_pvt_ltd_company" target="_blank" rel="noopener"><img decoding="async" class="wp-image-13556 size-full aligncenter" src="https://d6xcmfyh68wv8.cloudfront.net/learn-content/uploads/2024/07/Screenshot-2024-09-24-at-5.20.07 PM-scaled.webp" alt="" width="2560" height="231" srcset="https://d6xcmfyh68wv8.cloudfront.net/learn-content/uploads/2024/07/Screenshot-2024-09-24-at-5.20.07 PM-scaled.webp 2560w, https://d6xcmfyh68wv8.cloudfront.net/learn-content/uploads/2024/07/Screenshot-2024-09-24-at-5.20.07 PM-300x27.webp 300w, https://d6xcmfyh68wv8.cloudfront.net/learn-content/uploads/2024/07/Screenshot-2024-09-24-at-5.20.07 PM-1024x93.webp 1024w, https://d6xcmfyh68wv8.cloudfront.net/learn-content/uploads/2024/07/Screenshot-2024-09-24-at-5.20.07 PM-768x69.webp 768w, https://d6xcmfyh68wv8.cloudfront.net/learn-content/uploads/2024/07/Screenshot-2024-09-24-at-5.20.07 PM-1536x139.webp 1536w, https://d6xcmfyh68wv8.cloudfront.net/learn-content/uploads/2024/07/Screenshot-2024-09-24-at-5.20.07 PM-2048x185.webp 2048w" sizes="(max-width: 2560px) 100vw, 2560px"></a></b><b>Characteristics of a Private Limited Company</b><span class="ez-toc-section-end"></span></h2>
<p><strong>Following are some of the main features of a pvt ltd company:&nbsp;</strong></p>
<h2><span class="ez-toc-section" id="Types-of-Private-Limited-Company"></span><b>Types of Private Limited Company</b><span class="ez-toc-section-end"></span></h2>
<p>There are three types of Private Limited Company registrations, and entrepreneurs can choose the one that best suits the needs of their business.</p>
<h3 data-sourcepos="5:1-5:32"><strong>1. Company Limited by Shares</strong></h3>
<ul>
<li><strong>Ownership:</strong> The ownership of the company is divided into shares.</li>
<li><strong>Liability:</strong> The liability of the shareholders is limited to the amount of shares they have subscribed to.</li>
<li><strong>Capital Structure:</strong> The company raises capital by issuing shares to shareholders.</li>
<li><strong>Common Use:</strong> This is the most common type of company, suitable for businesses of all sizes.</li>
</ul>
<h3 data-sourcepos="12:1-12:35"><strong>2. Company Limited by Guarantee</strong></h3>
<ul data-sourcepos="14:1-18:0">
<li data-sourcepos="14:1-14:142"><strong>Ownership:</strong> Ownership is not based on shares but on membership.</li>
<li data-sourcepos="14:1-14:142"><strong>Liability:</strong> The liability of the members is limited to the amount they guarantee to contribute to the company in the event of winding up.</li>
<li data-sourcepos="16:1-16:126"><strong>Capital Structure:</strong> The company doesn’t raise capital through shares but relies on donations, grants, or membership fees.</li>
<li data-sourcepos="17:1-18:0"><strong>Common Use:</strong> Often used for non-profit organizations, clubs, or societies.</li>
</ul>
<h3 data-sourcepos="19:1-19:24"><strong>3. Unlimited Company</strong></h3>
<ul data-sourcepos="21:1-25:0">
<li data-sourcepos="21:1-21:132"><strong>Ownership:</strong> The ownership structure can vary.</li>
<li data-sourcepos="21:1-21:132"><strong>Liability:</strong> The liability of the members is unlimited, meaning their personal assets can be used to settle the company’s debts.</li>
<li data-sourcepos="23:1-23:103"><strong>Capital Structure:</strong> The company can raise capital through various means, including issuing shares.</li>
<li data-sourcepos="24:1-25:0"><strong>Common Use:</strong> This type of company is less common and is usually used for specific purposes, such as family businesses or holding companies.</li>
</ul>
<h2><span class="ez-toc-section" id="Characteristics-of-a-Private-Limited-Company-2"></span><b>Characteristics of a Private Limited Company</b><span class="ez-toc-section-end"></span></h2>
<p><strong>Following are some of the main features of a pvt ltd company:&nbsp;</strong></p>
<h3><b>1. Members</b></h3>
<p><span style="font-weight: 400;">The act mandates that a minimum of two shareholders are required to start such a company, while the limit for maximum number of members is fixed at 200.&nbsp;</span></p>
<h3><b>2. Directors</b></h3>
<p>The Act mandates that a private limited company must have a minimum of two directors, while the maximum number of directors is 15.</p>
<h3><b>3. Limited Liability Structure</b></h3>
<p><span style="font-weight: 400;">In a private limited company, the liability of each member or shareholder is limited. Therefore, even in the case of loss under any circumstances, the shareholders are liable to sell their assets for repayment. However, the personal and individual assets of the shareholders are not at risk.</span></p>
<h3><b>4. Separate Legal Entity</b></h3>
<p><span style="font-weight: 400;">This is a separate legal entity and continues in perpetual succession. This means that even if all the members die, or the company becomes insolvent or bankrupt, the company still exists in the eyes of the law. The life of the company will be perpetual, not affected by the lives of its shareholders or members unless dissolved by way of resolution.</span></p>
<h3><b>5. Minimum Paid-Up Capital</b></h3>
<p><span style="font-weight: 400;">A private limited company is required to have and maintain a minimum paid-up capital of ₹1 lakh. It could go higher, as prescribed by MCA from time to time.</span></p>
<h2><span class="ez-toc-section" id="Requirements-to-Start-a-Private-Limited-Company"></span><b>Requirements to Start a Private Limited Company&nbsp;</b><span class="ez-toc-section-end"></span></h2>
<p><span style="font-weight: 400;">Every business type has its own set of requirements before it is incorporated. </span></p>
<p><strong>The requirements for registering this are as stated below:&nbsp;</strong></p>
<h3><b>1. Members and Directors</b></h3>
<p><span style="font-weight: 400;">As mentioned above, to get itself legally registered, a private limited company means it must show a minimum number of two and a maximum number of 200 members. This is a statutory requirement as mandated by the Companies Act 2013.</span></p>
<p><strong>The directors should meet the following conditions:</strong></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Each of the directors should have a DIN i.e. director identification number, which is given by the Ministry of Corporate Affairs</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">One of the directors must be a resident of India, which means he/she should have stayed in India for not less than 182 days in the previous calendar year.</span></li>
</ul>
<h3><b>2. Name of the Company</b></h3>
<p><span style="font-weight: 400;">Choosing the name of the company is often a technical task. A private limited company is required to cover three aspects while deciding a name for itself:&nbsp;</span></p>
<ol>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Main name</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Activity to be carried out</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Mention of ‘Private Limited Company’ at the end.&nbsp;</span></li>
</ol>
<p><b><i>Pro tip: </i></b><span style="font-weight: 400;">It is not always necessary that the name the business owner is looking for will be available, as no two companies can have the same name. Therefore, it is a requirement that at the time of registration, every company has to send 5-6 names for approval to the Registrar of Company (ROC). Moreover, the submitted names should not have a close resemblance with any other company’s name.&nbsp;</span></p>
<h3><b>3. Registered Office Address</b></h3>
<p><span style="font-weight: 400;">After the company has been registered, the permanent address of its registered office must be filed with the registrar of the company. The registered office of the company is where the company’s main affairs are being conducted and where all the documents are placed.</span></p>
<h3><b>4. Obtaining Other Documents</b></h3>
<p><span style="font-weight: 400;">For electronic submission of documents, every company must obtain a digital signature certificate that is used to verify the authenticity of the documents. Moreover, in a company employing professionals (secretaries, chartered accountants, cost accountants, etc.) for varied activities, certifications by these professionals are necessary.</span></p>
<h2><b><a href="https://razorpay.com/rize/company-registration/private-limited?utm_source=learn_articles&amp;utm_medium=CTA_Button&amp;utm_campaign=what_is_pvt_ltd_company" target="_blank" rel="noopener"><img decoding="async" class="aligncenter wp-image-13556 size-full" src="https://d6xcmfyh68wv8.cloudfront.net/learn-content/uploads/2024/07/Screenshot-2024-09-24-at-5.20.07 PM-scaled.webp" alt="" width="2560" height="231" srcset="https://d6xcmfyh68wv8.cloudfront.net/learn-content/uploads/2024/07/Screenshot-2024-09-24-at-5.20.07 PM-scaled.webp 2560w, https://d6xcmfyh68wv8.cloudfront.net/learn-content/uploads/2024/07/Screenshot-2024-09-24-at-5.20.07 PM-300x27.webp 300w, https://d6xcmfyh68wv8.cloudfront.net/learn-content/uploads/2024/07/Screenshot-2024-09-24-at-5.20.07 PM-1024x93.webp 1024w, https://d6xcmfyh68wv8.cloudfront.net/learn-content/uploads/2024/07/Screenshot-2024-09-24-at-5.20.07 PM-768x69.webp 768w, https://d6xcmfyh68wv8.cloudfront.net/learn-content/uploads/2024/07/Screenshot-2024-09-24-at-5.20.07 PM-1536x139.webp 1536w, https://d6xcmfyh68wv8.cloudfront.net/learn-content/uploads/2024/07/Screenshot-2024-09-24-at-5.20.07 PM-2048x185.webp 2048w" sizes="(max-width: 2560px) 100vw, 2560px"></a></b></h2>
<h2><span class="ez-toc-section" id="List-of-Documents-Required-for-Private-Limited-Company"></span><b>List of Documents Required for Private Limited Company</b><span class="ez-toc-section-end"></span></h2>
<p>The documents required to incorporate a Pvt Ltd company include:</p>
<h3><b>1. Identity Proof</b></h3>
<p><span style="font-weight: 400;">Document verifying the identity of individuals such as PAN card and passport of Indian and foreign directors, respectively.</span></p>
<h3><b>2. Address Proof</b></h3>
<p><span style="font-weight: 400;">Document confirming the residential address of individuals such as utility bills or rental agreements.</span></p>
<h3><b>3. Director Identification Number (DIN)</b></h3>
<p><span style="font-weight: 400;">Unique identification number allotted to directors by the Ministry of Corporate Affairs.</span></p>
<h3><b>4. Digital Signature Certificate (DSC)</b></h3>
<p><span style="font-weight: 400;">Electronic signature ensuring the authenticity of documents filed electronically.</span></p>
<h3><b>5. Memorandum of Association (MoA)</b></h3>
<p><span style="font-weight: 400;">Legal document defining the company’s objectives and scope of operations.</span></p>
<h3><b>6. Articles of Association (AoA)</b></h3>
<p><span style="font-weight: 400;">Document outlining the rules and regulations governing the internal management of the company.</span></p>
<h3><b>7. Declaration by Directors and Subscribers</b></h3>
<p><span style="font-weight: 400;">Formal statement by directors and subscribers confirming compliance with legal requirements for company incorporation.</span></p>
<h3><b>8. No Objection Certificate (NOC) from the landlord</b></h3>
<p><span style="font-weight: 400;">Consent from the landlord permitting the use of premises as the company’s registered office.</span></p>
<h3><b>9. Shareholding Pattern of the Proposed Company</b></h3>
<p><span style="font-weight: 400;">Overview of the distribution of shares among shareholders in the company.</span></p>
<h3><b>10. Proof of Registered Office Address</b></h3>
<p><span style="font-weight: 400;">Documentation confirming the address where the company is registered and operates from.</span></p>
<h2><span class="ez-toc-section" id="How-to-Register-Pvt-Ltd-Company-A-Step-by-Step-Guide"></span>How to Register Pvt Ltd Company? A Step-by-Step Guide<span class="ez-toc-section-end"></span></h2>
<p>To <a href="https://razorpay.com/rize/company-registration/private-limited"><strong>register a</strong>&nbsp;<strong>private limited company in India</strong></a>&nbsp;the following steps are mandatory:</p>
<h3><b>STEP 1: Choose a Unique Name for Your Business</b></h3>
<ul>
<li><span style="font-weight: 400;">Choose a unique name that reflects your business’s identity and vision and is not in use by another company or trademarked by someone else. </span></li>
<li><span style="font-weight: 400;">You can check for name availability on the <a href="https://www.mca.gov.in/content/mca/global/en/home.html" target="_blank" rel="noopener">Ministry of Corporate Affairs (MCA)</a> official company registration website or the relevant regulatory authority in your state or union territory.</span></li>
</ul>
<h3><b>STEP 2: Obtain Digital Signatures from Authorised Agency</b></h3>
<ul>
<li><span style="font-weight: 400;">Obtain Digital Signature Certificates (DSC) for your company’s proposed directors and shareholders from any authorised agency or vendor registered with the MCA or the Certifying Authority (CA) under the Information Technology Act, 2000. </span></li>
<li><span style="font-weight: 400;">Digital signatures are essential for filing online documents with government authorities and verifying your identity and authenticity.</span></li>
</ul>
<h3><b>STEP 3: Obtain Director Identification Number (DIN) from MCA Portal</b></h3>
<ul>
<li><span style="font-weight: 400;">Apply for a Director Identification Number (DIN) online through the MCA portal by filling out the form DIR-3 and uploading the required documents, such as identity proof, address proof, and photographs for each of the directors of your company. </span></li>
<li><span style="font-weight: 400;">The MCA assigns a unique identification number to every individual who intends to be a company director.</span></li>
</ul>
<h3><b>4. Prepare Memorandum and Articles of Association&nbsp;</b></h3>
<ul>
<li><span style="font-weight: 400;">The MOA is a document that defines your company’s main objectives, scope, and activities whereas AOA lays down the rules and regulations for the management and administration of your company. </span></li>
<li><span style="font-weight: 400;">You can prepare the MOA and AOA online through the MCA portal by using the SPICe+ form and the templates provided by the MCA.</span></li>
</ul>
<h3><b>5. Get Consent and Declarations&nbsp;</b></h3>
<ul>
<li><span style="font-weight: 400;">The directors must consent to act as directors by filling out the form DIR-2 and attaching their DSC. </span></li>
<li><span style="font-weight: 400;">The shareholders must provide their declarations of compliance with the Companies Act, 2013 and the rules made thereunder by filling out the form INC-9 and attaching their DSC.</span></li>
</ul>
<h3><b>6. Apply for Company Name Approval&nbsp;</b></h3>
<ul>
<li><span style="font-weight: 400;">Submit the name approval application with the required documents to the Registrar of Companies (RoC) of the state or union territory where your company will be registered. </span></li>
<li><span style="font-weight: 400;">You can apply for name approval online through the MCA portal using the SPICe+ form and paying the prescribed fees.&nbsp;</span></li>
</ul>
<h3><b>7. File Incorporation Documents&nbsp;</b></h3>
<ul>
<li><span style="font-weight: 400;">You can file the incorporation documents for LLC online through the MCA portal using the SPICe+ form and pay the prescribed fees. </span></li>
<li><span style="font-weight: 400;">You need to attach documents, including the MOA, AOA and a few more, like AGILE-PRO, INC-14, 1NC-15, etc., along with the SPICe+ form.</span></li>
</ul>
<h3><b>8. Pay Registration Fees&nbsp;</b></h3>
<ul>
<li><span style="font-weight: 400;">The registration fees vary depending on the amount of authorised share capital and the state or union territory where your company is registered. </span></li>
<li><span style="font-weight: 400;">You can pay the fees online through the MCA portal using the SPICe+ form and the <a href="https://razorpay.com/payment-gateway/">payment gateway.</a></span></li>
</ul>
<h3><b>9. Verification and Approval&nbsp;</b></h3>
<ul>
<li><span style="font-weight: 400;">The RoC will carefully assess the documents, and if they meet all requirements, they will issue the Certificate of Incorporation which can be downloaded from the MCA portal. </span></li>
<li><span style="font-weight: 400;">I</span><span style="font-weight: 400;">t is a legal document that confirms the existence and registration of your company.&nbsp;</span></li>
</ul>
<h3><b>10. Obtain PAN and TAN&nbsp;</b></h3>
<ul>
<li><span style="font-weight: 400;"><a href="https://razorpay.com/learn/company-permanent-account-number-pan-card/">Apply for Permanent Account Number (PAN)</a> and Tax Deduction and Collection Account Number (TAN) online through the MCA portal using the AGILE-PRO form and the payment gateway. </span></li>
<li><span style="font-weight: 400;">PAN is a 10-digit alphanumeric code used to identify your company for tax purposes. </span></li>
<li><span style="font-weight: 400;">TAN is a 10-digit code used to deduct and collect tax at source from payments made by your company.</span></li>
</ul>
<h3><b>11. Open a Bank Account in a Company’s Name</b></h3>
<ul>
<li><span style="font-weight: 400;">Open a bank account in your company’s name and deposit the minimum capital required. The minimum capital for a pvt. ltd. company is ₹1 lakh.&nbsp;</span></li>
</ul>
<h3><b>12. Obtain Business Licenses&nbsp;</b></h3>
<p><span style="font-weight: 400;">Licencing and permit requirements can differ depending on the nature of your business.</span></p>
<p><strong> You may need to obtain them from various authorities, such as:</strong></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Trade licence from Municipal Corporation or Panchayat</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Environmental clearance from the Pollution Control Board</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Industrial licence from the Department of Industrial Policy and Promotion (DIPP)</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Quality certification from the Bureau of Indian Standards (BIS)</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Trademark, patent, or design registration from the Intellectual Property Office (IPO)</span></li>
</ul>
<h3><b>13. Register Your Business Under GST&nbsp;</b></h3>
<ul>
<li><span style="font-weight: 400;">Register for GST and comply with other tax obligations. You must <a href="https://razorpay.com/learn/how-to-register-for-gst/">register for GST</a> if your annual turnover exceeds ₹40 lakh (₹20 lakh for special category states).&nbsp;</span></li>
</ul>
<h3><b>14. Commence Business Operations</b></h3>
<ul>
<li><span style="font-weight: 400;">After diligently completing the above procedure, your Private Limited Company is ready to commence its operations.&nbsp;</span></li>
</ul>
<p><em><strong>Read More About: </strong></em><a href="https://razorpay.com/learn/how-to-register-a-private-limited-company-online-in-india/">How to register a Private Limited Company online in India?</a></p>
<h2><span class="ez-toc-section" id="What-Are-the-Registration-Costs-for-a-Private-Limited-Pvt-Ltd-Company"></span><b>What Are the Registration Costs for a Private Limited (Pvt Ltd) Company?</b><span class="ez-toc-section-end"></span></h2>
<p><b><br>
</b><span style="font-weight: 400;">The registration charges for a Private Ltd. Company depend on share capital, number of directors, stamp duty of the state where you want to register the company and other fees.</span></p>
<table>
<tbody>
<tr>
<td>
<h3><strong>Particulars</strong></h3>
</td>
<td>
<h3><strong>Amount (in ₹)</strong></h3>
</td>
</tr>
<tr>
<td><span style="font-weight: 400;">Name Reservation</span></td>
<td><span style="font-weight: 400;">₹1000</span></td>
</tr>
<tr>
<td><span style="font-weight: 400;">DIN Application Fee</span></td>
<td><span style="font-weight: 400;">₹500 per DIN</span></td>
</tr>
<tr>
<td><span style="font-weight: 400;">DSC Fee</span></td>
<td><span style="font-weight: 400;">₹1,500 per DSC</span></td>
</tr>
<tr>
<td><span style="font-weight: 400;">Memorandum of Association Fees&nbsp;</span></td>
<td><span style="font-weight: 400;">₹200 per lakh of authorised share capital or part thereof&nbsp;</span></td>
</tr>
<tr>
<td><span style="font-weight: 400;">Articles of Association Fee</span></td>
<td><span style="font-weight: 400;">₹300 per lakh of authorised share capital or part thereof&nbsp;</span></td>
</tr>
<tr>
<td><span style="font-weight: 400;">PAN Application Fee</span></td>
<td><span style="font-weight: 400;">₹66</span></td>
</tr>
<tr>
<td><span style="font-weight: 400;">TAN Application Fee</span></td>
<td><span style="font-weight: 400;">₹65</span></td>
</tr>
<tr>
<td><span style="font-weight: 400;">Stamp Duty&nbsp;</span></td>
<td><span style="font-weight: 400;">Varies from state to state&nbsp;</span></td>
</tr>
<tr>
<td><span style="font-weight: 400;">Professional Tax Registration Fee</span></td>
<td><span style="font-weight: 400;">Varies from state to state</span></td>
</tr>
</tbody>
</table>
<p>&nbsp;</p>
<h2><span class="ez-toc-section" id="What-Is-the-Registration-Timeline-for-a-Private-Limited-Company"></span><b>What Is the Registration Timeline for a Private Limited Company?</b><span class="ez-toc-section-end"></span></h2>
<p><span style="font-weight: 400;">The answer is not very simple, as it depends on various factors such as the availability of the company name, the documents required, and the workload of the government authorities. Therefore, the overall timeline for registering a private limited company in India can take around 12-18 days, depending on the time taken to complete each step and the workload of the government office processing the application.</span></p>
<h2><span class="ez-toc-section" id="Advantages-of-Private-Limited-Companies"></span><b>Advantages of Private Limited Companies</b><span class="ez-toc-section-end"></span></h2>
<h3><span style="font-weight: 400;"><strong>1. Limited liability</strong></span></h3>
<p><span style="font-weight: 400;">In a private limited company, there is a limited liability, which means the company’s members are not at risk of losing their private assets. If a company fails, the shareholders are liable to sell their assets for payment.</span></p>
<h3><span style="font-weight: 400;"><strong>2. Less number of shareholders</strong></span></h3>
<p><span style="font-weight: 400;">Unlike a public company that requires seven shareholders, a private limited company can be started with just two shareholders.</span></p>
<h3><span style="font-weight: 400;"><strong>3. Ownership</strong></span></h3>
<p><span style="font-weight: 400;">As the company’s shares are owned by investors, founders, and management, the owners are at the liberty of transferring and selling their shares to others</span></p>
<h3><span style="font-weight: 400;"><strong>4. Uninterrupted existence</strong></span></h3>
<p><span style="font-weight: 400;">As mentioned earlier, the company stays a legal entity until it is legally shut down, the company runs even after the death or departure of any member.</span></p>
<h2><span class="ez-toc-section" id="Disadvantages-of-Private-Limited-Companies"></span><b>Disadvantages of Private Limited Companies</b><span class="ez-toc-section-end"></span></h2>
<p><span style="font-weight: 400;">Now that you know what is Pvt Ltd company, its benefits, and how to register a company in India, let’s understand the disadvantages.&nbsp;</span></p>
<p><span style="font-weight: 400;">One of the disadvantages it gets with Pvt limited company is the compliance formalities for shutting it down. It often ends up getting too complicated and time-consuming.&nbsp;</span></p>
<h2><span class="ez-toc-section" id="FAQs"></span><b>FAQs</b><span class="ez-toc-section-end"></span></h2>
<h3>1. What is Pvt Ltd full form?</h3>
<p>The full form of PVT LTD is a private limited company. It is also known as a LTD company.</p>
<h3>2. What is Private Limited Company Definition?</h3>
<p>A private limited company (Pvt Ltd) is a privately held business entity that limits the liability of its owners and restricts the transferability of its shares.</p>
<h3><b>3. Is a private company better than a public?</b></h3>
<p><span style="font-weight: 400;">Private companies have the upper hand over public companies concerning investment in long-term strategies, keeping the values of their shares and financial figures discreet, freedom, and flexibility of operations.</span></p>
<h3><b>4. What are the minimum and maximum numbers of members in a private company?</b></h3>
<p>The minimum number of members in a private company is 2 directors and 2 members are required. All these members have limited liability, and the maximum number of members has increased from 50 to 200.</p>
<h3><b>5. How much does it cost to form a private limited company?</b></h3>
<p><span style="font-weight: 400;">The cost of establishing/registering a Pvt Ltd Company generally varies from INR 6,000 to INR 30,000, depending upon the number of Directors, members, the authorized share capital, and professional fees.</span></p>
<h3><b>6. What is compulsory for a private limited company?</b></h3>
<p><span style="font-weight: 400;">Under Section 134, all private companies must hold an annual general meeting. These companies are required to hold their meetings within six months of closing their Financial year.</span></p>
<h3><b>7. What are the rules for a Private Limited Company?</b></h3>
<p><span style="font-weight: 400;">It should have a minimum of 2 Directors and 2 Members &lt; The company members should hold an annual general meeting &lt; The maximum number of Members cannot exceed 200.</span></p>
<h3><b>8. What is an example of a private Ltd company?</b></h3>
<p><span style="font-weight: 400;">A private limited company is distinguished by its separate legal identity from its shareholders and directors, thereby limiting their liability to the value of the shares they own. An example of a private limited company is Google India Pvt. Ltd., which is a subsidiary of Google LLC.</span></p>
<h3><b>9. What is the difference between LLP and Pvt Ltd?</b></h3>
<p><span style="font-weight: 400;">LLP is a partnership where the partners have restricted liability and are not liable for the actions of other partners, whereas, in a Pvt Ltd company, the shareholders have limited liability and can transfer their shares to others. LLP has less compliance and tax burden than Pvt Ltd and less scope for raising funds from external sources.</span></p>
<h3><b>10. What is the minimum turnover for a Pvt Ltd company?</b></h3>
<p><span style="font-weight: 400;">There is no minimum turnover prerequisite for a Pvt Ltd company in India. However, certain threshold limits under the Companies Act 2013 trigger different compliances for Pvt Ltd companies, such as certification of annual return, corporate social responsibility, internal audit, appointment of auditor, etc. These threshold limits are based on the paid-up share capital, turnover, net worth, net profit, loans, borrowings, deposits, etc., of the Pvt Ltd company.</span></p>
				
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							<div itemprop="commentText" class="comment-text"><p>Nice blog really helpful for my website.</p>
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							<div itemprop="commentText" class="comment-text"><p>Thank you!</p>
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							<div itemprop="commentText" class="comment-text"><p>Nice blog .</p>
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