How to Start a Private Limited Company in India?

To start a Business in India, we need to form a legal entity and there are a lot of ways to create or form an entity like a sole proprietorship, partnership, limited liability partnership, one person company, private limited company, public limited company or many more ways. A Private Limited is the most common and popular way to start a Business because the Government of India provides a lot of benefits to these types of entities.

To start Business as a Private Limited Company, we need to register our entity with the Registrar of Companies, the Ministry of Corporate Affairs. As per the provision of section 2 (68) of the Companies Act, 2013 Private Company means having a minimum paid-up share capital and some restriction on its articles of association i.e.

Restricts the right to transfer its shares;
Except in the case of One Person Company, limits the number of its members to two hundred;
Prohibits any invitation to the public to subscribe for any securities of the company;