What is Private Limited Company?

This type of organization in characterized by the fact that ownership and management is separate. The capital of the Company is provided by a group of people called shareholder who entrust the management of the Company in the hands of persons known as Board of Directors. These are closely held businesses usually by family, friends and relatives. Private companies may issue stock and can have maximum of 200 shareholders. However, their shares do not trade on public exchanges and are not issued through an initial public offering.

What are the documents required for Company Registration?

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What are the Advantages / features?

  • Separate Legal Existence
  • Limited Liability
  • Flexibility of Ownership
  • Separation of Ownership and Management
  • Tax Planning
  • Perpetual Succession
  • Easy Transfer ability
  • Borrowing Power

What are the Minimum Requirements of Private Company Registration?

  • Minimum 2 Director
  • Minimum 2 Shareholder
  • DIN (Director Identification Number for all Director)
  • DSC (Digital Signature Certificate for one of the Directors)
  • Minimum Share Capital of Rs. 1,00,000/-
  • The Director and Shareholder can be same


  1. Separate Legal Existence
  2. Limited Liability
  3. Flexibility of Ownership
  4. Separation of Ownership and Management
  5. Tax Planning
  6. Perpetual Succession
  7. Easy Transferability
  8. Borrowing Power


The name of your company is very important. It is the first impression to your buyers, suppliers and stakeholders. It should, therefore, be relevant, suggestive and attractive. There are various factors that you should keep in mind while naming for your company.

Short & Simple: The name should be concise and not be too long. People should be able to pronounce it easily and they should be able to remember your company’s name the first time they hear or read it.

Meaningful: The name of your company should be related to your business. It should fit the company’s branding. For example, Infosys refers to information systems or IT technologies.

Unique: Name of your company should not be same or identical to an existing company or trademark.

Suffix: The name of your company should end with the suffix “Private Ltd” in a case of a Private limited company and “LLP” is a case of a limited liability partnership.

Should not be illegal / offensive: The name of your company should not be against law. It should not be abusive or against the customs and beliefs of any religion.

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