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A private company is a company which is owned by non-governmental organisations or a relatively small number of shareholders or members of a company. Usually, a private company does not offer or trade its shares to the general public on the stock exchanges, but rather the private stock of the company is owned and traded.


A private limited company is a company which is privately held for small businesses.

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Benefit of private Limited Company

As an entrepreneur interested in raising money from a venture capitalist, angel investors, hedge funds, or private equity funds you should opt for a private limited company. Such a company has the option of raising equity capital from anybody or any entity willing to become a shareholder.
When a private limited company is incorporated it is seen as an artificial judicial person. It is a separate judicial body. As a separate judicial body, a company has the power to buy its assets and even borrow its own funds. On the other hand, the shareholders of the company are liable for its debts only to the extent of shares they own.
In a private limited company, your liability as a shareholder is limited to the extent to the amount unpaid, if any, on the shares held. If the company commits a default, your personal assets cannot be liquidated.
A private limited company being taken as an artificial judicial person, it is protected from any effect due to the retirement, departure, or even death of any of its directors. Your private limited company will continue to exist until you wind it up through legal procedures.
Once you own a private limited company, you acquire a professional image before your vendors and customers, boosting your business valuation. It further gives you a unique identity, increases your trust quotient, opens up new opportunities, and builds a good market for you.
With VMC, registration of a private limited company is quick, easy, and completely hassle-free. Within 10 days you can register your company and start a business.
Once you get a private limited company registration, you can save a significant amount of money on taxes. Dividends have lesser tax deductions as compared to salary, which is why shareholders hold a higher value.
A private limited company opens up better opportunities for growth and expansion. It can raise funds and pay high salaries to attract experts and professionals for the growth and expansion of the company.

FAQ of Private Limited Company

In a private limited company, any person who is 18 years old or above belonging to any nationality can become a director. However, there must be at least one director in the private limited company who is an Indian resident.
Any amount of capital can be used to start a private limited company.
Yes, in a private limited company even NRIs and Foreign Nationals can become directors if they obtain a DIN from the Indian ROC. At least one of the directors on the Board of Directors is an Indian resident. The company can have NRIs and Foreign Nationals as shareholders in the company.
Private limited company incorporation can apply for only two names through MCA.
At the time of incorporation of a private limited company, only three DINs can be applied. Other directors can be appointed only once the company incorporation is successfully done.
There is no limit on the subscribers to the memorandum in a private limited company. However, in case of more than seven subscribers, you have to fill a physical AOA and MOA or an e-MOA and e-AOA for incorporation.
Yes, all subscribers and one of the directors must have a DSC. It is also mandatory for witnesses in eMoA (INC- 33) and eAoA (INC-34). When the maximum number of subscribers is not more than seven, you can use an eMoA and eAoA. However, when the number of subscribers is more than seven, you have to manually attach an MoA and AoA to the SPICe. In such cases, DSC is not mandatory.
No, you do not need to apply separately for the PAN and TAN. You can apply for both in the incorporation form itself.
Yes, in India a private limited company has the power to attract FDIs and venture capitals. private limited companies hold great potential for growth and expansion.
The maximum amount of share capital the Memorandum of Association authorizes the company is the authorized capital of a private limited company. The amount of money for which shares are issued to the shareholders and, in turn, the payment is made by the shareholders is the paid-up share capital of a company.
Yes, for foreign subscribers and directors, you need to apostille and notarize all their documents.
The entire process of incorporation is carried out online through the Ministry of Corporate Affairs. Whether you are an individual, director, or subscriber, you do not need to be physically present.
For private limited company incorporation, you need to have a minimum of two directors and two shareholders along with DSC of all shareholders. Also, you need to have the address proof of the registered office and the identity proofs and address proofs of all the directors and shareholders.
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Thank to all team members of VMC GROUP your customer support is really like Backbone... Special thanks to "Mr. Kirankumar" 

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I appreciate your service and will surely recommend to my friends who are looking for registering their company. It was a excellent job

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My notions were feeble to pay for online services before "VMC GROUP" experiences. However they utterly pay-off my each penny by their swift and

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Thank you VMC GROUP for all your help in registering my private limited company in Bangalore, very smooth and they made it very easy for me

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I am new at incorporation field but VMC GROUP helps me out & I would like to mention especially for Ms Pratibha Varia guided me all through the

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A good and professional company. I came to know about this company from Google. When I go through company profile, Enthical company with finest of Staff , Specially Pratibha Varia. She helped a lot throughout the process of registration and incorporation

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All the work of my company has been done by VMC Group employees for the last 3 years. I am satisfied with their work. I thank to Kaushik Sir

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My first experience today and it was really a wonderful experience. Quick updates and follow ups considering the criticality of the work, I'm very happy with the services provided Ms Manisha walked me through some of the processing very patiently and kept regular updates. Thank you

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Rama Singh

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