Private Limited Company
A private limited company in India is governed under the Ministry of corporate affairs (MCA). Registering a company is easy through IndiaFilings, as it is done completely online. To register a company in India a minimum of two people are required to act as directors and shareholders. To register a Private limited company in India the Director's PAN card, address proof, and the bank statement are required with the address proof of the registered office.
Section 2 (68) of the Companies Act, 2013 defines a private company as:
A company having a minimum paid-up share capital as may be prescribed, and which by its articles,
- restricts the right to transfer its shares;
- except in case of One Person Company, limits the number of its members to two hundred;
- prohibits any invitation to the public to subscribe to any securities of the company.
It is highly recommendable to get a private limited company registration as this type of company offers limited liability to the shareholders with certain restrictions that are placed on the ownership.
Private Limited Company is the most popular type of business entity in India. Over 20 lakh companies have been registered in India as of October 2020 and 12 lakh companies are classified as active. All companies registered in India are governed by the MCA (Ministry of Corporate Affairs) under the Companies Act, 2013.