Private limited company registration

Private Limited Company registration is the most prevalent and popular type of corporate legal entity in India.  To register a private limited company, a minimum of two shareholders and two directors are required. MCA has recently implemented major changes to the process and made it very simple to incorporate a company.

Types of Private Companies

Private companies are of three types depending on their members’ liabilities:

  1. Limited by shares: The liability of the members is limited to the amount unpaid to the company with respect to the shares held by them.
  2. Limited by guarantee: Here the members’ liabilities are limited to the amount of money they guarantee to pay in case the company is wound-up.
  3. Unlimited liability: The liability of members is unlimited in this type of private companies. Personal assets of members can be attached and sold when the company is being wound-up.

Documents required for Company Registration

In India, Private Limited company registration cannot be done without proper identity proof and address proof. Identity and address proof will be needed for all the directors and the shareholders of the company to be incorporated. Listed below are the documents that are accepted by MCA for the online company registration process acceptable.

Limitations of Private Companies

Despite all the advantages they offer, private companies also have the following limitations:

Private companies cannot freely transfer shares to the public.
They find it more difficult than public companies to access external financial support.
Shareholders have greater risks and liabilities.


Question: 1. Who is the owner of private limited company?

Members are the shareholders whose names are entered in the Register of Members of the Company. Private limited companies are owned by individual people and/or other companies. The owners of a company limited by shares are known as ‘shareholders’ because they each own at least one share in the company

Question:2. What is Pvt Ltd and Ltd Company?

A private limited company, or LTD, is a type of privately held small business entity, in which owner liability is limited to their shares, the firm is limited to having 50 or fewer shareholders, and shares are prohibited from being publicly traded. A company becomes an independent legal structure when it incorporates.