Private Limited Company is one of the most popular forms of company registration in India.  A Private limited company registration is governed by the Ministry of Corporate Affairs under Companies Act, 2013 and the Companies Incorporation Rules, 2014. A Private Limited Registration needs a minimum of two shareholders and two directors. Individuals and Corporate from places other than India or NRIs are allowed to be Directors and/or Shareholders of the Company with Foreign Direct Investment. This makes Private Limited Registration the most suitable kind of Company Registration for foreign promoters as well. Apart from the limited liability protection to its shareholders, features like ability to raise equity funds, separate legal entity status and perpetual existence make it the most recommended type of business entity for businesses of all sizes. A Private Limited Company also has a better borrowing capacity than that of One Person Company (OPC) or Limited Liability Partnership (LLP).  Banks and Financial Institutions prefer to provide funding to a registered company rather than partnership firms or proprietary concerns. They are also subjected to easy transferability and closure.

Separate Legal Entity

A Private Limited is a separate legal entity as distinct from its members, and is separate at law from its shareholders,directors, promoters etc. A Private Limited Company has the capacity to own properties, incur debts and exercise a number of legal rights.