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What is a Private Limited Company (Pvt.)

A Company is an association of persons who share common goals. Moreover, the owners of the company pool their resources to achieve their common goals. A private limited company is a closely held company with restrictions to issue shares to the public. Thus, it cannot go for an IPO or list its shares on the stock exchange for public trading of its shares.
This type of company offers limited liability for its shareholders with certain restrictions placed on the ownership. An LLP has partners, who own and manage the business. Whereas in private limited company registration, directors may be different from shareholders.
Registration of a Pvt Ltd Company in India is regulated by the Companies Act, 2013, and administered by the Ministry of Corporate Affairs with a minimum paid-up share capital as may be prescribed with a minimum of 2 directors and a maximum of 200 shareholders. It may also have limitations from the right to transfer its shares to others.

Why Register a Private Limited Company and its advantages?

Registering a company offers many benefits. A registered company increases the authenticity of your business. It helps your business:

Liability Protection

When businesses see unseen financial crises and are on the verge of closure, the shareholders of the private limited company do not face the risk of losing their assets. An obligation of the members is incomplete to the worth of shares held by the members. That is it shields them from their personal liability and protects them from other risks and losses.

Separate Legal Existence

Once the Company registration in India is done, a legal entity is born in the eyes of law. This separates itself from its owners and managers. The company can operate on its own name simply by opening a bank account to own assets and enter into a contract with parties. This also provides the right to sue third parties in case of any defaults.

Easy fundraising

The private limited companies in India enjoy the privileges of borrowing more funds than the LLPs as there are more options of taking debt. Banks help in assisting with financial aid to the private limited companies than the OPCs and the LLPs. The organization itself provides a number of ways to raise funds in the form of private equity, ESOP, and more.

Greater credibility attracting more customers

When businesses see unseen financial crises and are on the verge of closure, the shareholders of the private limited company do not face the risk of losing their assets. An obligation of the members is incomplete to the worth of shares held by the members. That is it shields them from their personal liability and protects them from other risks and losses.

Global reach

If the business is developing products on a global scale and aiming for expansion of operations across the world, then it is important to get the investments and the form of collaborations with foreign establishments. One of the advantages of the private limited companies in India is that 100% through the automatic route, which means there is no requirement of any government approval for foreign companies to make investments in India. The partnerships, LLPs need acceptance from the government.

Regulated governance

The private limited companies in India enjoy the privileges of borrowing more funds than the LLPs as there are more options of taking debt. Banks help in assisting with financial aid to the private limited companies than the OPCs and the LLPs. The organization itself provides a number of ways to raise funds in the form of private equity, ESOP, and more.

Easy exit

Private limited companies in India can be sold or transferred, either partially or in full to other individuals or entities without any disruption to the current business.

What are the documents Required for Company Registration

Private limited companies in India can be sold or transferred, either partially or in full to other individuals or entities without any disruption to the current business.

Proof of existence

  • PAN card and aadhar copy of all the Directors and Shareholders, Foreign nationals must provide a valid passport.
  • Copy of voter ID/passport/driving license scanned
  • Copy of the latest bank statement/telephone or mobile bill/electricity or gas bill scanned.
  • Passport-sized photograph specimen signature (blank document with signature [directors only] scanned.

Proof of registered office

  • Copy of the latest bank statement/telephone or mobile bill/electricity or gas bill scanned.
  • Copy of the notarized rental agreement in English scanned.
  • Copy of no-objection certificate from the property owner scanned.
  • Copy of rental agreement and no objection certificate from the owner of the property

How to register?

Private limited companies in India can be sold or transferred, either partially or in full to other individuals or entities without any disruption to the current business.

The first step is to obtain DSC i.e Digital Signature Certificate for the directors involved in the private limited company. as it is needed while filing e-forms and submitting tax returns. The DSC acts as a sort of verification or identification mark, allowing such personnel to authenticate documents being sent to the Government.

Required documents to obtain DSC
  • Passport size photo of applicant
  • Self-attested copies of the applicant’s Address proof
  • Self-attested PAN card of applicant

DIN, is a unique identification number assigned to Directors of companies by the Ministry of Corporate Affairs. The number is valid for a lifetime unless withdrawn, surrendered, or removed by the MCA

Required documents to obtain DIN
  • Passport size photo of applicant
  • Self-attested copies of the applicant’s Address proof
  • Self-attested PAN card of applicant

To have a unique name for the company the directors must submit an application asking to reserve a particular name for the Private Limited Company via e-Form INC – 1. One single application can contain a maximum of 6 different names, ranked in order of their preference along with why the name is a good fit for the company.

General Guidelines for Choosing a Name for the Private Limited Company:
  1. The name must be easy to remember, as well as spell
  2. It should provide the company with a unique identity
  3. The name must be short, simple, and creative
  4. Name must not contain within it any words which are derogatory or deemed unparliamentary
  5. It must not contain words that are offensive and prohibited
  6. It must not infringe any legal Trademarks registered earlier
  7. The name cannot be similar or identical to any other company’s names

If approved, the RoC reserves the name for 60 days, within which the company must apply for incorporation. If the company fails to do so, the name shall lapse and the entire process will have to be repeated, for the company to file its incorporation.




Once an appropriate name is reserved, the Company must apply for incorporation. Also, the officials must draft a Memorandum of Association and Articles of Association for the Private Limited Company. The MoA describes the company’s scope of operations, lists out its objectives, and also names its activities. On the other hand, the AoA describes the nature of operations of the company and explains how its administration will carry out its responsibilities.

Once a company receives the Certificate of Incorporation with PAN and TAN, it becomes a legal entity and can start functioning as a Private Limited Company within India. Therefore, from then on, the directors, administrators, and promoters can commence their operations. Furthermore, the company must deposit the share capital as listed in the company’s account as soon as possible. The CoI and other details about the company’s creation will be listed on the MCA website.

Why numbro? What makes us different and what do you get?

Obtaining all these documents is really a challenge, so seek the help of professionals. Registering a Company is quick, easy, and can be done online with Numbro in 3 simple steps

  1. We help you register your directors with the Ministry of Corporate Affairs (MCA)
  2. NUmbro helps you pick the right company name
  3. We draft and file the documents required for your company registration (MoA and AoA)
  • What makes us different
  • What do u get
  • Affordable Rate
  • Single point solution
  • CA Assistance
  • Happy Clients
  • No Hidden Charges
  • Fast Processing
  • DIN for 2 Directors
  • AOA and MOA
  • Bank Account opening support
  • Company PAN Card
  • ESI and PF Registration
  • Business Incorporation Certificate
  • Payment Gateway Integration Support
  • Company TAN/TDS Number
  •  GST Registration* (Auto Approval from ROC)

FAQ’S

A legal form of business that offers limited liability, or legal protection for its shareholders but it also places certain restrictions on its ownership. These restrictions are defined in the company’s bylaws or regulations. Director is an appointed or elected member of the board of directors of a company, who, with other directors, has the responsibility for determining and implementing the company’s policies. Directors act on the basis of resolutions made in directors’ meetings. Directors derive their powers from the corporate legislation and the company’s articles of association. The Duties and responsibilities for directors are prescribed under the Companies Act 2013.
If your business is too small to hire an in-house accountant or you simply don’t have the desire to do it yourself, you should consider outsourcing the task. While many small-business owners use QuickBooks, the software can be more complicated than expected. By outsourcing your accounting, you can free yourself to focus on other aspects of your business.

Cost-effectiveness – Salaries of professionals are significantly lower than those in Europe and other countries. This wage difference translates into cost savings. 

24/7 operation – Offshore development facilities located in India are in the perfect time zone to help you operate 24/7. 

Large pool of talent – Retaining experienced employees becomes difficult when they are given boring and repetitive work. Numbro India offers you a cost-effective talent pool that you can tap into for reliable service delivery. 

Best Practices – Focused heavily on quality and continuous process improvement, offshore development centers operate at high levels of efficiency, predictability, and reliability. Our high process maturity greatly reduces risks and provides a significant advantage when managing service level agreements. 

Shared drive or e-mail is our preferred. We can conform to any process that makes our clients’ life easier.
Shared drive or e-mail is our preferred. We can conform to any process that makes our clients’ life easier.
Yes, on a schedule to be determined. Daily, weekly, twice a month, monthly, quarterly and annually. We can customize to any schedule that you need.
It is only a myth that you lose control if accounting and book-keeping is out-sourced. The whole idea of out-sourcing is to streamline your financial tasks and keep your books updated by professional and reap multiple benefits which Outsourcing offers. As it’s rightly said, do what you are best at, outsource the rest.
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