How many directors and members does a private limited company need?

It needs a minimum of 2 directors and at least 2 members, and it may have up to 200 members. At least one director must be resident in India.

What is the INC-20A filing?

INC-20A is the declaration of commencement of business. It must be filed within 180 days of incorporation, and the company cannot commence business or borrow until it is filed.

Can the shares be freely sold?

No. Shares in a private limited company are privately held and their transfer is restricted by the articles of association; they cannot be offered to the public.

Should I choose a private limited company or an LLP?

A private limited company is usually preferred where the business plans to raise equity funding or issue shares to investors, because it has a formal share structure. An LLP suits closely held or professional ventures that want limited liability with lighter ongoing compliance.

Start Up

Private Limited Company Registration

Incorporate a private limited company — the preferred structure for startups raising funding and scaling.

What's covered

A Private Limited Company is incorporated under the Companies Act 2013 and may have between 2 and 200 members, with a minimum of 2 directors.
It is a separate legal entity that limits each shareholder's liability to the amount unpaid on their shares, and it enjoys perpetual succession independent of changes in its members.
It is the structure most often preferred for raising equity or venture funding, because investors can be issued shares and the cap table is formally maintained.
Shares are privately held and are not freely transferable to the public; the company is incorporated through the MCA SPICe+ form with AGILE-PRO for GST, EPFO, ESIC and bank-account setup.

Benefits

Limited liability — shareholders' exposure is capped at the unpaid value of their shares
Fundraising-ready — equity can be issued to angel and venture investors
Perpetual succession independent of changes in ownership
Separate legal entity that can own assets, contract and sue in its own name

How we work

01
Obtain DSC and DIN for directors
Apply for a Digital Signature Certificate and a Director Identification Number for all proposed directors — usually issued in 1–2 working days.
02
Name reservation and SPICe+ filing
File SPICe+ Part A to reserve the name and Part B for incorporation, with the MOA and AOA; the Certificate of Incorporation is typically issued in 7–14 working days, and PAN and TAN are allotted with it.
03
Commencement of business (INC-20A)
File the INC-20A declaration of commencement of business within 180 days of incorporation; the company may not commence business or exercise borrowing powers until this is filed.

Documents required

PAN and Aadhaar of every director and shareholder
Address proof of every director and shareholder
Registered-office proof with a no-objection certificate from the owner
Digital Signature Certificate of the directors
Particulars for the MOA and AOA, including the proposed share capital and objects

Applicable laws & forms

Companies Act 2013 — governs incorporation, share capital and conduct of the company
Companies (Incorporation) Rules 2014 — prescribe the SPICe+ incorporation procedure
Section 10A / Form INC-20A — declaration of commencement of business within 180 days
Income-tax Act 1961 — the company is assessed at the rate applicable to companies

Frequently asked questions

Government fees

Statutory / government fee (indicative): ₹5,000

Indicative government fee · last verified 2026-06-07. Our professional charges are shared on consultation.