It is governed by the MCA (Ministry of Corporate Affairs), Government of India, and overseen by the Companies Act, 2013 and the Companies (Incorporation) Rules, 2014.
A Private Limited Company is a company registered under Companies Act which restricts the right to transfer its shares and is not allowed to increase its number of shareholders more than 200.
Nearly 93% of the Indian Companies are Private Limited Company.
A Private Limited Company has to use “Private Limited” or “Pvt. Ltd” as a suffix.
In a Private Limited Company, the minimum number of members/ shareholders are 02 and the maximum number of members is 200
In Private Limited Company the minimum numbers of Directors are 02.
Private Limited Company makes its decisions through a meeting of Board and meeting of members.
A Private Limited Company needs to follow lesser regulation compared to a Public Limited Company.
Check whether proposed name(s) do(es) not match with existing names of the companies.
For incorporation of Company and its further compliances Class 2 DSC is necessary.
File web based Form RUN for the purpose of reservation of name for the company
File web based forms Form SPICe+, Forms SPICe+ MOA, Forms SPICe+ AOA, Form AGILE Pro, and Form INC-9 for completion of incorporation process.
Due to limited liability risk of attachment of personal assets does not exist.
Shares of a company limited by shares are transferable by a shareholder to any other person subject to the restriction as given in the definition. The transfer is simple as compared to the transfer of an interest in a business run as a proprietary concern or a partnership.
A Private Limited Company is a separate legal entity which means a Private Limited company can file a court case in its name and if a particular person wants to file a case against the company then he cannot file such a case against the shareholder or Director but he can do it against the company itself.
A Private Limited Company enjoys Perpetual Succession which means a company’s existence does not depend upon the existence of its Directors or Members.
A company can be shut down only by a legal procedure as may be prescribed in the Companies Act.
A company can raise equity capital from persons or entities interested in becoming a shareholder subject to condition given in Definition above. Entrepreneurs can raise money from banks, financial institutions, angel investors, venture capital firms, private equity firms, and hedge funds.
