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A private limited company is a company whose article of association restricts the transferability of shares and prevents the public from subscribing to them.


  • Shareholders are only liable for money they have invested in the company.
  • Shareholders own the company, but management is responsible for running the company on a day-to-day basis.
  • A private limited company must have at least one shareholder, but there is no maximum limit.
  • Private limited companies must file annual financial statements and returns with the relevant regulatory authority.


  • Limited liability for shareholders.
  • The ability to raise capital through the issuance of shares.
  • Ease of transfer of ownership.
  • Separate legal identity.
  • Perpetual succession.

Documentation required-

  • PAN card or passport (for foreign nationals & NRIs)
  • ID (voter ID, passport, or driver’s license)
  • utility bill (bank statement or utility bill)
  • passport photo and signature
  • bank statement or utility bill
  • notarized rental agreement
  • NOC from property owner
  • property deed (if owned)

Why Legal Adhikari?

You don’t even need to leave your house to create your firm because the private limited company registration process is entirely online. In only 14 days, Legal Adhikari can register your company at the lowest cost available.


  • Is it necessary to have a company’s books audited?

Yes, irrespective of its income, a private limited firm is required to employ an auditor. Within 30 days after formation, an auditor must be engaged. Given that fines for non-compliance can reach millions of rupees and possibly result in the blacklisting of directors, compliance is crucial for a private limited business.

  • Are two directors necessary for registration of a company?


Two directors are necessary for the registration of a company as per the Companies Act 2013. This means that a private limited company must have at least two directors. However, for One Person Company (OPC) only one director is required. The requirement for directors is to ensure that there is a minimum level of oversight and management for the company.


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