Private Limited Company Registration in India – Step-by-Step Guide, Eligibility, Cost & FAQs

A Private Limited Company is one of the most preferred legal structures for startups and growing businesses in India due to its credibility, tax benefits, and fundraising opportunities. In this guide, we answer the most searched questions related to Private Limited Company Registration in India, including the process, documents, GST rules, MSME conversion, and key differences from LLP and OPC.

📌 Section 1: How Do I Register a Private Limited Company?

FAQs:

1. What is the minimum turnover for a Pvt Ltd company?
   No minimum turnover is required to register a Pvt Ltd company.

2. Can a single person start a Pvt Ltd company?
   No, at least two directors/shareholders are required. If you’re solo, you can opt for an OPC.

3. Which is better, OPC or Pvt Ltd?
   Pvt Ltd is better for scalability and investment; OPC is suitable for single founders.

4. What is the minimum capital for a Pvt Ltd company?
   ₹1 lakh is recommended, though there’s no statutory minimum under the Companies Act 2013.

5. What is a minimum turnover?
   This refers to revenue — but there’s no minimum requirement for incorporation.

6. Who is eligible for Pvt Ltd?
   Any Indian/NRI/foreigner above 18 years with valid KYC and DIN.

7. What is a 1% company?
   Likely refers to a One Person Company (OPC) with a single promoter.

8. Can Pvt Ltd have partners?
   Yes, it can have 2 to 200 shareholders.

9. How do I register a private limited company under MSME?
   After incorporation, apply for MSME (Udyam) registration with PAN and Aadhaar.

10. How to convert proprietorship to Pvt Ltd?
    Incorporate a new company and legally transfer all assets, liabilities, and brand via agreement.

📌 Section 2: Can I Register Pvt Ltd by Myself?

FAQs:

1. Is GST mandatory for Pvt Ltd?
   Not mandatory unless turnover exceeds ₹40 lakh for goods or ₹20 lakh for services, or interstate sales happen.

2. Is CA required for company registration?
   No, but it’s advisable for compliance and drafting MOA/AOA correctly.

3. What documents are required for Pvt Ltd?

   • PAN, Aadhaar

   • Passport-sized photo

   • Utility bill

   • NOC from property owner

4. Can I run a company without GST?
   Yes, if below the threshold, but you’ll be limited in business operations and B2B sales.

5. What is the cost of GST registration?
   Free on the government portal. Professional assistance may cost ₹500–₹2,000.

6. How to open a private limited company?
   Apply via MCA’s SPICe+ form with DSC, DIN, name approval, and incorporation documents.

7. What is the validity of CA registration?
   CA membership is valid with regular renewal under ICAI norms.

8. Can CA open his own company?
   Yes, as a shareholder or director, but ICAI has restrictions on practice vs. business.

9. What is the full form of AOA?
   Articles of Association.

10. How much money is required to register a Pvt Ltd company in India?
    Typically ₹6,000–₹15,000 depending on stamp duty and professional fees.

📌 Section 3: What is the Eligibility for Private Limited?

FAQs:

1. What is limit in private company?

   • Max: 200 members

   • Min: 2 directors

2. What is the difference between private limited and Pvt Ltd?
   None. “Pvt Ltd” is an abbreviation.

3. What is the tax rate for a private limited company?
   22% + surcharge and cess under new regime.

4. How to write Pvt Ltd?
   Add “Private Limited” or “Pvt Ltd” at the end of the company name.

5. Who can be a director?
   Any individual aged 18+ with a DIN and no disqualification.

6. Which is the most important document of a company?
   Certificate of Incorporation (COI) issued by MCA.

7. What is the minimum turnover for a private limited company?
   No minimum turnover is required.

8. What are the documents required for a Pvt Ltd company?

   • PAN, Aadhaar

   • Passport/photo ID

   • Address proof

   • Electricity bill

   • Rent agreement (if rented)

9. What is the benefit of Pvt Ltd?

   • Limited liability

   • Better funding options

   • Business continuity

   • Credibility

10. How much income is tax-free?
    For individuals, up to ₹7 lakh is tax-free (under new regime). Pvt Ltd income is fully taxed.

11. What are STT charges?
    Securities Transaction Tax — not applicable unless the company trades on stock exchanges.

12. How much business income is tax-free?
    No income is tax-free for companies. Individuals may benefit under presumptive tax.

📌 Section 4: Is Pvt Ltd a Registered Company?

FAQs:

1. Which is better, LLP or Pvt Ltd?

   • LLP: Low compliance, ideal for professionals

   • Pvt Ltd: Best for startups/funding

2. Who is the owner of Pvt Ltd?
   The shareholders (owners); directors manage daily operations.

3. What is PVT full form?
   Private.

4. Who is eligible for Pvt Ltd company?
   Indian/NRI/Foreign nationals with valid identity and address proof.

5. Who is more powerful in Pvt Ltd company?
   Shareholders own; directors manage — power depends on company structure.

6. What is the difference between Ltd and Pvt Ltd?
   Pvt Ltd is private; Ltd is public. Pvt Ltd can’t raise funds from the public.

7. What is the difference between LLP and Pvt Ltd?

   • LLP: Regulated under LLP Act

   • Pvt Ltd: Under Companies Act, with stricter compliance and more funding options