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All you need to know
A Private Limited Company is the most widely used business structure in India, especially by startups, family-run businesses, and growing enterprises. It is registered under the Companies Act, 2013 with the Ministry of Corporate Affairs (MCA). Being a separate legal entity, it enjoys a clear distinction between the company and its owners. This means the company itself can own property, enter contracts, borrow money, sue, and be sued in its own name, independent of its shareholders or directors. In a pvt ltd company registration, the liability of each shareholder is limited to the unpaid amount on the shares they hold. For example, if a shareholder owns ₹1,00,000 worth of shares and has paid ₹75,000, the maximum liability is only ₹25,000 — protecting personal assets from business risks. One of the biggest reasons entrepreneurs prefer this structure is its credibility. Banks, NBFCs, investors, and venture capitalists often prefer dealing with private limited companies because they follow stricter compliance and governance standards. This makes fundraising and loan approvals smoother With online private limited company registration, the entire process is now handled digitally through MCA’s SPICe+ forms and also note that you do not miss about filing Form INC 20A once you start your company.
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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.