WHAT IS Private Limited Company?


Minimum Number Of Shareholders: For a private company, a minimum number of required shareholders is 2, whereas, for a public company, you require a minimum of 7 shareholders.

Management And Decision Making: Management and decision making becomes more complex and confusing in public companies as more number of shareholders are to be consulted. This complex procedure is eliminated in private company as the number of shareholders is less.

Focus Of Management: Managers of Public Company are focused on increasing the value of shares, whereas managers of the private company are more flexible in the short term and long term business decisions.

Long Term Planning: Managers of public companies are pressurized to increase earnings in the short term in order to increase the value of their stock. Private companies can focus on long-term earnings as such pressure is eliminated..



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Private Limited Company Benefits


Ease of raising Seed and Venture Capital

Angels, Seed Funds or Venture Capitalists only fund a Private Limited Company 

Limited Liability

The liability of the shareholders is Limited to their Shareholding. Thus, if a loss is incurred, shareholders will not suffer beyond their Unpaid Share Capital.

Separate Legal Entity

It is separate and distinct from its Shareholders and Directors. It can buy and sell property, enter into contracts, sue or be sued upon in its own name. The death, insanity, incapacity or insolvency of its shareholders and / or directors does not affect the existence of the Company in any way.

Perpetual Existence

Once formed, a Private Limited Company has a life-time existence until and unless it is liquidated.







Any individual/organization can become the member of the private limited company including foreigners/NRI.

MOA states the main and the subsidiary objectives of the proposed company. The rules and procedures for the conduct of the proposed company, authorized share capital, names of its first permanent directors are mentioned in the AOA. Our team of professionals at WayToLegal will help drafting of MOA & AOA. The amount paid for the stamp duty depends on the amount of authorized share capital.

Yes, you need a minimum of two directors for a Private Limited Company. If you are a sole owner, you can register as a One Person Company. You can get your One Person Company registered at WayToLegal.

No, you will not have to be present in India for registering of a Private Limited Company.

An address in India where the registered office of the company will be situated is must requirement for formation of Pvt Company. The premises can be a commercial / industrial / residential where communication from the MCA will be received.

Ministry has introduced a new form "RUN" (Reserve Unique Name) for company name registration on its portal. Under "RUN", the applicant can make application by providing 2 different names with its significance. The names should be unique and in accordance with the provisions.

Any person is eligible to be a shareholder while registration or afterwards. A Body Corporate such as company or LLP; and Association of Persons (AOP) such as Society or Trust can also hold shares in a company. Further, a group of persons can jointly hold the share in the company

Yes, a NRI or Foreign National can be a Director in a this form of company after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident Indian and the criteria shall be followed even after incorporation

Digital Signature Certificate is provided in a token form and issued by Certified Authorities. Any form filed for online company registration in India shall be submitted after affixing the DSC of an Applicant. Also, the directors will require DSC for DIN application and the subscribers to MOA shall possess DSC for submitting e-forms for incorporation

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