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A Private Limited Company (Pvt Ltd) is the most popular business structure in India for startups, small businesses, and growing enterprises. Governed by the Companies Act, 2013 and regulated by the Ministry of Corporate Affairs (MCA), a Private Limited Company is a separate legal entity from its promoters and directors. This means the company can own property, incur debt, sue and be sued in its own name — completely independent of its shareholders.
Under Indian law, a Private Limited Company can have a minimum of 2 and maximum of 200 shareholders. It requires at least 2 directors, with at least one being an Indian resident (someone who has stayed in India for at least 182 days in the previous calendar year). The liability of shareholders is limited to the amount unpaid on their shares — this is the limited liability protection that makes Pvt Ltd the preferred choice for funded startups.
In a Pvt Ltd Company, your personal assets (house, car, savings) are protected from business liabilities. If the company incurs debt or faces a lawsuit, only the company's assets are at risk — not the personal wealth of its directors or shareholders. This is the single most important reason why investors prefer Pvt Ltd over LLP or Partnership Firms.
Venture capitalists, angel investors, and institutional investors only invest in Private Limited Companies. If you plan to raise funding — whether from seed round to Series A — you need a Pvt Ltd. The share structure allows easy equity dilution, ESOP pools, and convertible instruments like SAFEs and CCDs.
A Private Limited Company has perpetual existence. Even if a director or shareholder passes away, resigns, or transfers their shares, the company continues to exist. This ensures business continuity and builds long-term value.
A "Pvt Ltd" suffix instantly signals professionalism. Banks, vendors, clients, and government agencies treat Private Limited Companies with higher trust. It's significantly easier to open a current account, get credit facilities, and win contracts with a Pvt Ltd.
Private Limited Companies registered as startups under DPIIT / Startup India can avail 3 consecutive years of tax exemption under Section 80-IAC. The corporate tax rate for companies with turnover under ₹400 crore is 25%, and new manufacturing companies can opt for a 15% concessional rate under Section 115BAB.
| Component | Government Fee | Our Package (₹6,999) |
|---|---|---|
| Name Reservation (RUN) | ₹1,000 | Included |
| DSC for 2 Directors | ₹500-1,500 | Included |
| DIN for 2 Directors | ₹500 each | Included |
| SPICe+ Filing (Incorporation) | ₹500-5,000* | Included |
| Stamp Duty | Varies by state | Included |
| MOA & AOA Drafting | — | Included |
| PAN & TAN Application | ₹0 (via SPICe+) | Included |
| Professional Fee | — | Included |
*Government fees depend on authorised share capital. For ₹1 lakh capital, SPICe+ fee is approximately ₹500.
Get Exact Quote for Your Company →| Feature | Private Limited | LLP | OPC |
|---|---|---|---|
| Minimum Members | 2 directors, 2 shareholders | 2 designated partners | 1 director, 1 nominee |
| Limited Liability | Yes | Yes | Yes |
| Can Raise VC Funding | Yes | No (difficult) | No (must convert) |
| Annual Compliance | Higher (ROC, audit, AGM) | Lower (Form 8 & 11) | Moderate |
| Tax Rate | 25% | 30% (slab rate) | 25% |
| ESOP / Share Transfers | Easy | Not applicable | Limited |
| Startup India Eligible | Yes | Yes | Yes |
| Best For | Funded startups, scaling businesses | Professional services, small businesses | Solo entrepreneurs |
Our recommendation: If you plan to raise funding or scale beyond ₹1 crore turnover, go with Pvt Ltd. For freelancers and consultants, LLP is often more cost-effective. Solo founders can start with OPC and convert later.
After registering your Private Limited Company, you must maintain ongoing annual compliance. Missing deadlines attracts penalties from MCA:
Late filing of ROC forms attracts a penalty of ₹100 per day of delay, per form. For a company that misses both AOC-4 and MGT-7 by 6 months, the penalty can exceed ₹36,000. Our annual compliance packages ensure you never miss a deadline.
| State | Stamp Duty | Total Govt Cost (approx.) |
|---|---|---|
| Rajasthan | ₹500 | ₹2,000-3,000 |
| Maharashtra | ₹1,000-1,300 | ₹3,000-5,000 |
| Delhi | ₹1,000-1,300 | ₹3,000-5,000 |
| Karnataka | ₹1,000-5,000 | ₹3,000-7,000 |
| Tamil Nadu | ₹500-1,500 | ₹2,500-4,000 |
| Gujarat | ₹500-1,000 | ₹2,000-3,500 |
| Uttar Pradesh | ₹1,000 | ₹2,500-4,000 |
| West Bengal | ₹1,000-2,000 | ₹3,000-5,000 |
Note: Stamp duty varies based on authorised share capital. Fees shown are for ₹1 lakh capital. Our ₹6,999 package includes all government fees for standard capital.
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