Private Company Registration | BTHAWK

Private Company Registration

  • 14-03-2023

What is a Private Company??

It is a group of two or more individuals who come together with a perspective of engaging in a business with the motive of earning money from it. A private company is made to fulfill the demands that arise out of the market conditions and to obtain the expected return by investing the human and financial capital of the nation.

Persons who engage in such business make standard criteria and the right attitude to form place and avail the opportunities in the capitalist economy, so that it may help properly in the future.

What are the key benefits of a private company?

  • LIMITED LIABILITY: The owners here have limited liability, which is the most significant advantage of having a private limited company. And if in case the company goes into liquidation, the assets are protected. The company’s money remains with the company and does not fall on the owner’s shoulder.
  • TAX EFFICIENT: Private companies are tax efficient as they can claim corporation tax relief on their profits. This can be significant savings for businesses and increase profits.
  • There is no minimum capital required to launch a private limited company.
  • Shares of private limited can be transferred to other people by the shareholders.
  • FDI that is foreign direct investment is allowed to invest directly in a private limited company.

Eligibility for Private Company Registration

Under Section 2 (68) of The Companies Act, the legal requirements of a company are as follows:

  • There must be a minimum number of 2 people to form a private company.
  • The maximum number should not exceed 200. 
  • Persons may/may not be citizens of the country. 
  • They must not be guilty of any offense that involves legal charges.
  • The maximum number of directors should not exceed 2.
  • Minimum capital is required to be Rs 1,00,000 or above
  • Liability of the shareholders is kept to the extent of their share in the company


 While all this happens to be the basic requirements of the company for getting itself registered. 


Document Required for Private Company Registration


 Under Section 2 (68) of The Companies Act 2013, certain documents are required for the registration, which is as follows:


  • Address proof of the Company where its actual business is operating 
  • Residential warranty of the Company’s Office 
  • Personal details of the directors who are to administer the company
  • Photographs of the Company’s directors 
  • Business details comprise office amenities, their names, and the status thereof.


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