Overview
What is a Private Limited Company?
A Private Limited Company (Pvt Ltd) is the most widely chosen business structure for startups, growing enterprises, and foreign subsidiaries entering India. Registered under the Companies Act, 2013 and governed by the Ministry of Corporate Affairs (MCA), it offers shareholders limited liability — meaning personal assets remain protected against the company's debts and obligations.
Once incorporated, a Pvt Ltd company becomes a separate legal entity distinct from its directors and shareholders. It can own property, enter contracts, open bank accounts, and raise equity investment entirely in its own name. This makes it particularly attractive for entrepreneurs seeking funding from angel investors or venture capital.
The Registrar of Companies (ROC), under the MCA, oversees company registration, annual filings, and statutory compliance. Every Pvt Ltd company must have a minimum of 2 directors (with at least one Indian resident director) and 2 shareholders. The same individuals can serve as both directors and shareholders. Shareholder count is capped at 200.
There is no minimum paid-up capital requirement following the 2015 amendment to the Companies Act. Shares in a Private Limited Company cannot be publicly traded, which distinguishes it from a Public Limited Company.
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