Almost 93 percent of the companies incorporated in India are registered as Private Limited Companies.


Entrepreneurs must know the following things before registering a company as a Private Limited Company:

1. No minimum capital required to register a company

Earlier, the shareholders had to pay a minimum of Rs 1 lakh as a subscription amount to incorporate a private limited company. Now, there is no such requirement.


2. Minimum two individual directors are required

Companies Act, 2013, Minimum two directors are required to incorporate a private limited company. 


3. Minimum two shareholders are required

Shareholders are owners of the company and they have certain rights, including appointment and removal of directors. A private limited company can be incorporated with a minimum of two shareholders. 

The shareholders could be natural persons or companies, including foreign companies. 


4. The same person can be both a director and a shareholder

An individual can hold the position of both a director as well as a shareholder in a Private Limited Company, but a body corporate shareholder cannot hold the position of a director.


5. Maximum number of shareholders or members in a private company can be 200

To incorporate a private limited company, a minimum of two shareholders are required and a maximum of 200 shareholders are allowed.


6. One director must be a resident in India

At least one director of a private limited company must be a resident in India.

Resident in India means any person who has stayed in India for a total period of not less than 182 days in the previous financial year.


7. Shares of private limited company cannot be traded on stock exchange

If you are planning to list your company’s shares on the stock exchange you must go for public limited companies, since shares of the Private Limited Company cannot be listed and traded on stock exchange.

Myths Related to Private Limited Company Registration in India

The tendency to avoid choosing to register a Private Limited Company as a form of business, especially amongst start-ups, is due to certain notions and myths surround the private limited company.

MYTH#1: Private Limited Company Registration is expensive

A few years ago, incorporation of a Private Limited Company used to be expensive with the incorporation charges reaching the limit of Rs. 50,000 or more. This used to make one think that incorporating a Private Limited Company would burn a hole in your pocket. 

Now in the current scenario, you can register your company as Private Limited with HG Corporates in just  `13,700/-. in less than 10 working days.

Call: 82608-82609 Now!


MYTH#2: Shareholders Meetings Are Required More Often

As per Companies Act, 2013it is mandatory for a Private Limited Company to hold an Annual General Meeting. However, Board meetings are necessary only when special resolutions need to be passed.

Meetings related to the maintenance of legal compliances of a Private Limited Company is a matter of minutes and is not a tedious or hefty task to perform.

Hence, whether it is Annual General Meeting or Board Meetings, it should not come in the way of choosing to register a Private Limited Company as a form of doing business.

For Any Help in Private Limited Company Registration & Compliance:
Email us:
Call on:  82608-82609

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