Limited Liability · Corporate Protection — India's Most Preferred Business Structure
A Private Limited Company (Pvt Ltd) is a separate legal entity incorporated under the Companies Act, 2013. It offers limited liability to its shareholders — meaning personal assets of directors and shareholders are fully protected from business debts and obligations.
With a minimum of 2 directors and 2 shareholders and no minimum paid-up capital requirement, it is the most popular business structure for startups, SMEs, and businesses seeking investment or institutional credibility.
VITTAX handles the complete incorporation process — from DSC procurement, DIN, name approval via RUN portal, MOA & AOA drafting, SPICe+ filing, COI, PAN, TAN, GSTIN, bank account advisory, and compliance calendar setup.
Separate Legal Identity
The company can own property, open bank accounts, and enter contracts in the Pvt Ltd's own name.
Limited Liability Protection
Directors and shareholders are fully protected from business debts — personal assets cannot be seized.
Investor-Ready Structure
Preferred by VCs and angel investors for equity funding, ESOPs, and formal governance.
Tax Efficient
Taxed at 25% on profits. No dividend distribution tax; directors' salary and bonuses are deductible.
Flexible Management
Companies Act defines roles, profit sharing, and decision-making via well-structured governance rules.
FDI Permitted
Foreign nationals and NRIs can invest; FDI allowed under the automatic route in most permitted sectors.
| Feature | Partnership | Pvt Ltd ★ | LLP |
|---|---|---|---|
| Legal Entity | No | Yes | Yes |
| Liability | Unlimited | Limited | Limited |
| Min. Directors | 2 | 2 Directors | 2 |
| Equity Funding | Not available | Possible | Very limited |
| Annual Compliance | Low | High | Moderate |
| Audit Requirement | If turnover >₹1Cr | Mandatory | If turnover >₹40L |
| Ideal For | Small traders | Startups, funding | Professionals, services |
Startups & Founders
Best structure for startups seeking venture funding, angel investment, or investor-backed growth.
Co-Founders
Two or more founders who want defined roles, equity split, and formal governance via the Companies Act.
E-commerce Sellers
Amazon, Flipkart, Meesho sellers who need liability protection and a GST-ready formal structure.
Professionals & Consultants
Architects, tech firms, consultants who want limited liability with full corporate credibility.
NRI / Foreign Investors
FDI allowed under automatic route in most permitted sectors — at least one Indian resident director required.
Growth-Minded Entrepreneurs
Anyone scaling beyond ₹40L turnover seeking credibility with banks, vendors, and large clients.
Name Reservation (RUN Portal)
1–2 DaysProposed company name checked against MCA database for availability and reserved via the RUN portal.
DSC & DIN Procurement
1 DayDigital Signature Certificates and Director Identification Numbers obtained for all directors — required for MCA filings.
MOA & AOA Drafting
1–2 DaysMemorandum and Articles of Association drafted covering business objectives, shareholder rights, and director roles.
SPICe+ Filing
1 DayFiling of incorporation via SPICe+ integrated form on the MCA portal with all director and registered office details.
Certificate of Incorporation
3–7 Working DaysMCA reviews and issues the Certificate of Incorporation along with the company's CIN, PAN, and TAN.
Post-Incorporation — GST / Bank / Compliance
Within 30 DaysGSTIN applied, bank account advisory provided, shareholders' agreement template issued, and annual compliance calendar set up.
Directors / Shareholders
PAN card, Aadhaar card, mobile number and email ID of all designated directors
Address proof (bank statement or utility bill — not older than 2 months)
Passport-size photograph of each director
Passport copy required for foreign nationals / NRI directors
Registered Office
Ownership document or NOC from property owner + rental agreement
Latest utility bill (electricity/water) — not older than 2 months
NOC from owner is mandatory if address is not owned by the company
Pricing Plans
Basic
₹5,999 one-time
Simple incorporation for 2 directors
+ Govt. fees ~₹2,000–5,000 at actuals
Standard
₹7,999 one-time
Up to 4 directors + GSTIN + bank advisory
Ideal for: startups with multiple co-founders needing GST and full documentation
Premium
₹24,999 one-time
Full setup with compliance + ESOP + GST filing
Ideal for: funded startups needing end-to-end legal, compliance, and accounting
Frequently Asked Questions
What is the minimum paid-up capital required?
There is no minimum paid-up capital requirement for a Private Limited Company under the Companies Act, 2013. You can start with as little as ₹1 as authorised capital, though a nominal amount like ₹1 lakh is commonly used.
Can one person register a Private Limited Company?
No. A Private Limited Company requires a minimum of 2 directors and 2 shareholders. For single founders, consider an OPC (One Person Company) structure which is designed specifically for solo entrepreneurs.
Can a foreign national be a director?
Yes. A foreign national can be a director of a Pvt Ltd company, provided at least one director is an Indian resident (person who has stayed in India for at least 182 days during the previous calendar year) as mandated by the Companies Act, 2013.
Is a registered office address mandatory?
Yes. A registered office address is mandatory for incorporation. It can be residential or commercial. If the premises are not owned by the company, an NOC from the property owner is required along with a utility bill not older than 2 months.
What are the annual compliance requirements?
Annual compliance includes MGT-7 (Annual Return), AOC-4 (Financial Statements), AGM, ITR, GST returns, TDS filings, and ROC annual filings. A statutory audit is mandatory regardless of turnover for all Pvt Ltd companies.
What is the difference between Pvt Ltd and LLP?
Pvt Ltd requires mandatory statutory audit, higher ROC compliance (multiple annual filings vs LLP's Form 8 + Form 11), but is far better suited for equity investment, ESOPs, and venture capital. Choose Pvt Ltd if you plan to raise external funding; choose LLP for professional or service firms that want lower ongoing compliance costs.
⚡ Incorporation Includes
Name reservation, DSC, MOA & AOA, SPICe+ filing, COI, PAN, TAN, GST & compliance calendar — all handled for you