Private Limited Company

A private limited company is a company which is privately held for small businesses. The liability of the members of a Private Limited Company is limited to the amount of shares respectively held by them. Shares of Private Limited Company cannot be publically traded. The minimum number of members is two and maximum number is two hundred. A private limited company has the limited liability of members but at the same time it has many characteristics as those of a partnership firm. A Private limited company stands between partnership and widely owned public company. Identifying marks of a private limited company are name, number of members, shares, formation, management, directors and meetings, etc., The maximum number of directors shall have to be mentioned in the Articles of Association. In the grand of privileges and exemptions, the Companies Act has drawn a distinction between an independent private company and other private company which is a subsidiary to the other public company.

Advantages

Separate Legal Entity: A company is a legal entity and an artificial person established under the Act. Therefore this form of organization has extended legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts except to the tune of capital invested in the company.
Perpetual Existence: A company has 'perpetual succession', that is continued until it is legally dissolved or wound up. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in shareholding / membership.
Borrowing Capacity: A company enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured and can also accept deposits from the public, etc. Even banking and financial institutions prefer to offer financial assistance to a company over partnership firms or proprietary concerns.
Easy Transferability: Shares of a company limited by shares are transferable by a shareholder to any other person. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares (Form SH-4 is the current designated form for transfer of shares).
Owning Property: A company, being a separate legal entity, can own property in its own name. The company is the real owner of its assets and members cannot claim ownership of the company’s property.
Limited Liability: Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a limited liability company the liability of the members in respect of the company's debts is limited.

Process

Private Limited Company Registration –
G K B & Associates can incorporate a Private Limited Company in 7 to 10 days, subject to ROC processing time.

Obtaining DSC & DIN –
Digital Signature Certificate (DSC) and Designated Partner Identification Number (DPIN) is required for the proposed Partners of the LLP. These can be obtained within 2–3 days.

Name Approval –
A minimum of one and a maximum of two proposed names must be submitted for RUN (Reserve Unique Name) to the MCA. Approval usually takes 2–3 business days.

Company Registration –
Submit all documents to MCA for approval. It usually takes 5–7 days for incorporation subject to processing time.

Documents Required

1. ID Proof and Address Proof (Aadhar Card) for Director. As ID proof PAN Card is mandatory.
2. Latest utility bill (electric bill/telephone bill) or latest tax receipt/ownership deed of the property for the property to be used for registered office.

Frequently Asked Questions

What is a Private Limited Company in India?

A Private Limited Company is a popular business structure in India that offers limited liability to its shareholders, separate legal identity, and higher credibility with customers, banks, and investors.

Why should I choose a Private Limited Company for my business in India?

Private Limited Companies are ideal for startups and growing businesses as they allow easy fundraising, limited liability protection, separate legal existence, and better brand image. G K B & Associates helps entrepreneurs globally establish private limited companies in India.

What are the requirements to register a Private Limited Company in India?

You need a minimum of 2 directors, 2 shareholders, a registered office address in India, and digital signatures for directors. G K B & Associates handles all compliance and documentation for incorporation.

What documents are needed for Private Limited Company registration?

Key documents include PAN and Aadhaar of directors, identity and address proofs, registered office address proof, and passport (for foreign nationals). Our experts prepare and file all documents with the Ministry of Corporate Affairs (MCA).

How long does it take to register a Private Limited Company in India?

Private Limited Company registration usually takes 7–12 working days, depending on document submission, name approval, and MCA processing.

Private Limited Company