Skip to content

Private Limited Company

Everything about forming a PVT. LTD. in India — who can start one, what you file, what it costs to keep running, and what happens after the certificate arrives.

11 lessons · read in order, or jump to what you need

MCA data · Financial Year basis

PVT. LTD. in No’s

Registered since FY 2016-17
15,19,996
(70.3%) of all 21,61,174 companies and LLPs
FY 2025-26
2,30,548
(67.1%) of that year's registrations
FY 2026-27 so far (Apr–Sep)
1,26,327
(64.8%) of registrations this year

Roughly 7 in every 10 companies and LLPs registered in India since FY 2016-17 were Private Limited Companies. Its share has eased from (71.3%) in FY 2016-17 to (67.1%) in FY 2025-26 as more founders chose LLPs.

Source: Ministry of Corporate Affairs monthly incorporation data. FY 2021-22 excludes three months the MCA did not publish (Nov 2021, Jan 2022, Mar 2022).

Lessons

  1. 1What is a Private Limited Company?A Private Limited Company (PVT. LTD.) is a business registered under the Companies Act, 2013 that is a separate legal person, limits shar...
  2. 2Is PVT. LTD. right for you?A PVT. LTD. suits you if you plan to raise equity, offer ESOPs or need strong credibility, and can handle a yearly audit and ROC filings....
  3. 3Directors and Shareholders in a Private Limited Company: DIN ExplainedShareholders own a Private Limited Company and directors run it. A PVT. LTD. needs at least 2 of each, one director resident in India, an...
  4. 4Digital Signature Certificate (DSC) for Company RegistrationA Digital Signature Certificate (DSC) is an electronic signature, issued by a licensed Certifying Authority, used by directors and subscr...
  5. 5Company Name Approval in India: Search, SPICe+ and Naming RulesCheck Company name availability, trademark conflicts, naming rules, SPICe+ Part A, fees and reservation validity in one practical guide.
  6. 6MOA and AOA: Meaning and Role in Company RegistrationThe Memorandum of Association (MoA) says what a company is and what business it may do; the Articles of Association (AoA) set how it is r...
  7. 7Authorised Capital vs Paid-up Capital in a Private Limited CompanyAuthorised capital is the maximum value of shares a company may issue, as stated in its MoA; paid-up capital is what shareholders actuall...
  8. 8Documents Required for Company Registration in India: PVT LTD and OPCCompany Registration documents and eligibility for PVT LTD and OPC, with owner, office, corporate Shareholder and overseas-document prepa...
  9. 9The SPICe+ form (INC-32): the company Registration form, step by stepSPICe+ (Form INC-32) is the single MCA form to incorporate a company: reserve the name in Part A, file details in Part B with e-MoA, e-Ao...
  10. 10Compliance After Company Registration: The First 180 DaysIn its first 180 days a new PVT. LTD. must hold its first board meeting and appoint its first auditor within 30 days, issue share certifi...
  11. 11Private Limited Company Annual Compliance: Forms, Due Dates and ChecklistA complete PVT LTD annual compliance guide covering audit, meetings, ROC forms, tax filings, late fees, event-based obligations and zero-...

Registering a Private Limited Company? What to expect from your service provider

When you register a Private Limited Company, you can expect at least the following from your service provider, in the order each happens.

16 items

Before incorporation

Digital signatures and name approval, so the forms can be filed.

  1. 1
    2 Class 3 Digital Signature Certificates (DSC)One for each of the two directors, valid for 2 years, used to sign MCA forms.
  2. 2
    Company Name Approval Letter from the MinistryThe name is approved by the Ministry of Corporate Affairs through SPICe+ Part A.

At incorporation

Director IDs, the company's legal documents and tax numbers.

  1. 3
    2 Director Identification Numbers (DIN)Allotted to the two directors at the time of incorporation, through the SPICe+ form.
  2. 4
    Memorandum of Association (MoA)Sets out what the company will do and its share capital.
  3. 5
    Articles of Association (AoA)The internal rules for running the company.
  4. 6
    Company Registration CertificateThe Certificate of Incorporation issued by the Registrar of Companies, with the company's CIN.
  5. 7
    Permanent Account Number (PAN)The company's income tax number, issued with incorporation.
  6. 8
    Tax Deduction and Collection Account Number (TAN)Needed to deduct tax at source (TDS), issued with incorporation.

Registrations with incorporation

Applied for together through the AGILE-PRO-S form.

  1. 9
    EPFO RegistrationEmployees' Provident Fund registration.
  2. 10
    ESIC RegistrationEmployees' State Insurance registration.
  3. 11
    GST RegistrationThe company's GSTIN, so it can charge and claim GST.

After incorporation

The first steps every new company must complete.

  1. 12
    Appointment of the first auditorThe Board appoints the first auditor within 30 days of incorporation.
  2. 13
    Documents for opening the bank accountPapers the bank needs to open the company's current account.
  3. 14
    Form INC-20A (commencement of business)Declares that shareholders have paid for their shares. Due within 180 days of incorporation.
  4. 15
    Stamp duty on share certificatesPaid at the rate set by the state where the company is registered.
  5. 16
    Share certificatesIssued to the first shareholders within 2 months of incorporation.

The lessons above explain each step. To prepare, read the documents checklist. For the full process, read How to Register a Company in India, and for the costs, Company Registration fees and charges.

Compare with the other structures

Still deciding? Read PVT. LTD. vs LLP vs OPC: which one should you choose?

CS. Bhavik Hariyani

About the author

CS. Bhavik Hariyani

Working with Startups on Corporate Law and Compliance since 2009.

If you’re a First-Time Founder, choose a structure that suits your Business. Before registering, understand how much you will need to spend every year on Annual Maintenance and Compliance.