What is a Private Limited Company?
A separate legal entity with limited liability, suitable for startups, growth businesses, and companies seeking funding.
Advantages
- Good for Startups
- Minimum 2 founders
- Up to 200 shareholders
- VC & Angel funding friendly
- ESOP possible
- FDI allowed in most sectors
- Limited liability protection
- Best for Scalable Startups & Funding
NRI / Foreign Participation
- NRI as Shareholder: ✅ Allowed
- NRI as Director: ✅ Allowed (at least one resident director required)
- Foreign National Shareholder: ✅ Allowed
- Foreign National Director: ✅ Allowed
- Foreign Funds: ✅ Allowed under FEMA
- Approval: Automatic route in most sectors; RBI reporting required
Minimum Statutory Compliance
- Books of accounts
- Statutory audit
- Tax Audit (if turnover exceeds 10 crores, 75 lakhs for professional income )
- Annual MCA filing
- Income Tax filing
- GST Filing
- TDS compliance
- Advance Taxes
- EPF/ESI/PT
- Statutory Registers
- Board and Shareholder meetings
Promoters are Called
- Shareholders
- Directors
Structure Requirements
- Minimum Shareholders: 2
- Maximum Shareholders: 200
- Minimum Directors: 2
- Maximum Directors: 15 (beyond with special resolution)
- Minimum Capital: No statutory minimum
- Maximum Capital: No limit
Meetings
- Board Meetings: Minimum 4 per year(small cos 2)
- Shareholder Meetings: Minimum 1 AGM per year
Subsidiary
- Foreign company can set up Indian private limited subsidiary.
Dividend Repatriation (in case of NRI/Foreign share holders)
Permitted subject to FEMA compliance.
Directors Remuneration
Directors can draw salary
Corporate Tax Rate
- 22% (115BAA option) or 25%/30% depending on turnover
FORMATION OF PRIVATE LIMITED COMPANY
CORE SERVICES (Rs. 5,999)
- NAME APPROVAL
- DSC FOR ALL DIRECTORS
- MOA & AOA DRAFTING
- DIN FOR DIRECTORS
- APPLICATION PREPARATION
- ATTESTATION BY PROFESSIONALS (CA/CS/CMA)
- PAN & TAN & CERTIFICATE OF INCORPORATION (CIN)
OPTIONAL SERVICES (Additional Fee)
- GST REGISTRATION
- BANK ACCOUNT OPENING ASSISTANCE
- APPOINTMENT OF AUDITOR
- INITIAL COMPLIANCE FILING
- TRAINING ON COMPLIANCE
- ACCOUNTING
- COMPANY SECRETARIAL SERVICES
- GST FILING
- MONTHLY COMPLIANCES
- ANNUAL INCOME TAX FILING
- ANNUAL MCA FILING
- ANNUAL AUDIT/TAX AUDIT/GST AUDIT FACILITATION
- VIRTUAL CFO SERVICES
- OFFICE SPACE/CO-WORKING FACILITY