FAQs On Private Limited Company
What is a Private Limited Company?
- A Private Limited Company is a business structure registered under the Companies Act, 2013. It is a separate legal entity, which means it has its own identity, can own property, and is distinct from its directors and shareholders.
How many directors are required for registration?
- At least two directors are required to register a private limited company. Out of them, one must be a resident of India.
Can NRIs or foreign nationals register a Pvt Ltd Company in India?
- Yes, NRIs and foreign nationals can register a company in India. However, at least one director must be a resident Indian. Foreign Direct Investment (FDI) is also allowed in most sectors.
What is the minimum capital requirement?
- There is no mandatory minimum capital. A private limited company can be incorporated with an authorized share capital as low as ₹10,000.
How long does the registration process take?
- Typically, it takes 7–10 working days if all documents are in order and MCA approvals are on time.
What is the difference between LLP and Pvt Ltd?
- An LLP has limited liability but is usually chosen for small businesses with fewer compliance needs. A Pvt Ltd Company is more structured, has stricter compliance, but offers better credibility and scope for fundraising.
Can I register a company with my home address?
- Yes, you can use your residential address as the registered office of the company. You will need address proof and a No-Objection Certificate from the property owner if it’s rented.
What compliances are mandatory after incorporation?
- Mandatory compliances include filing INC-20A, appointment of an auditor, maintaining books of accounts, holding board meetings, filing ROC annual returns (AOC-4, MGT-7), and income tax returns.
What is INC-20A and why is it required?
- INC-20A is the Declaration for Commencement of Business. It must be filed within 180 days of incorporation to confirm that subscribers have paid for their shares. Without this, the company cannot start business operations.
Is GST registration compulsory for a Pvt Ltd Company?
- GST registration is not compulsory for every company. It is mandatory if your turnover crosses ₹40 lakh (₹20 lakh in special states) or if you are engaged in inter-state or online supply.
Do I need an auditor after incorporation?
- Yes, every private limited company must appoint a statutory auditor within 30 days of incorporation, regardless of its turnover or business activity.
What annual filings are required with ROC?
- You must file: AOC-4 for financial statements, MGT-7 for annual returns, and ADT-1 for auditor appointment.
Can I convert my Private Limited Company to a Public Company later?
- Yes, you can convert a Pvt Ltd into a Public Limited Company by passing a resolution, altering MOA and AOA, and filing required forms with ROC.
How much does Private Limited Company Registration cost?
- The cost depends on government fees and professional charges. At NetProfit, packages start from ₹7,999/- including DSC, DIN, name approval, incorporation, PAN, and TAN.
Why choose online Private Limited Company Registration instead of offline?
- Online registration is faster, cost-effective, and eliminates paperwork. MCA’s SPICe+ system allows digital filing of all forms.
What documents are needed for registration?
- You need PAN, ID proof, address proof, passport-size photos of directors, proof of registered office, and a No-Objection Certificate from the owner if it’s rented.
How many shareholders can a Pvt Ltd Company have?
- A private limited company must have at least 2 shareholders and can have a maximum of 200 shareholders.
What are the tax benefits of a Private Limited Company?
- A company pays corporate tax at prescribed rates. However, it can claim business expenses, depreciation, and deductions, which reduce taxable income.
Can a single person register a Private Limited Company?
- No, a private limited company requires at least 2 members. If you want to start alone, you can opt for a One Person Company (OPC).
Can a Private Limited Company raise funds from investors?
- Yes, it can raise funds from angel investors, venture capitalists, or by issuing new shares, making it a preferred structure for startups seeking investment.
A Private Limited Company is a business structure registered under the Companies Act, 2013. It is a separate legal entity, which means it has its own identity, can own property, and is distinct from its directors and shareholders.
At least two directors are required to register a private limited company. Out of them, one must be a resident of India.
Yes, NRIs and foreign nationals can register a company in India. However, at least one director must be a resident Indian. Foreign Direct Investment (FDI) is also allowed in most sectors.
There is no mandatory minimum capital. A private limited company can be incorporated with an authorized share capital as low as ₹10,000.
Typically, it takes 7–10 working days if all documents are in order and MCA approvals are on time.
An LLP has limited liability but is usually chosen for small businesses with fewer compliance needs. A Pvt Ltd Company is more structured, has stricter compliance, but offers better credibility and scope for fundraising.
Yes, you can use your residential address as the registered office of the company. You will need address proof and a No-Objection Certificate from the property owner if it’s rented.
Mandatory compliances include filing INC-20A, appointment of an auditor, maintaining books of accounts, holding board meetings, filing ROC annual returns (AOC-4, MGT-7), and income tax returns.
INC-20A is the Declaration for Commencement of Business. It must be filed within 180 days of incorporation to confirm that subscribers have paid for their shares. Without this, the company cannot start business operations.
GST registration is not compulsory for every company. It is mandatory if your turnover crosses ₹40 lakh (₹20 lakh in special states) or if you are engaged in inter-state or online supply.
Yes, every private limited company must appoint a statutory auditor within 30 days of incorporation, regardless of its turnover or business activity.
You must file: AOC-4 for financial statements, MGT-7 for annual returns, and ADT-1 for auditor appointment.
Yes, you can convert a Pvt Ltd into a Public Limited Company by passing a resolution, altering MOA and AOA, and filing required forms with ROC.
The cost depends on government fees and professional charges. At NetProfit, packages start from ₹7,999/- including DSC, DIN, name approval, incorporation, PAN, and TAN.
Online registration is faster, cost-effective, and eliminates paperwork. MCA’s SPICe+ system allows digital filing of all forms.
You need PAN, ID proof, address proof, passport-size photos of directors, proof of registered office, and a No-Objection Certificate from the owner if it’s rented.
A private limited company must have at least 2 shareholders and can have a maximum of 200 shareholders.
A company pays corporate tax at prescribed rates. However, it can claim business expenses, depreciation, and deductions, which reduce taxable income.
No, a private limited company requires at least 2 members. If you want to start alone, you can opt for a One Person Company (OPC).
Yes, it can raise funds from angel investors, venture capitalists, or by issuing new shares, making it a preferred structure for startups seeking investment.
