Startup & Business
Private Limited Company
A separate legal entity incorporated under the Companies Act 2013 — most common startup structure.
Full Definition
A Private Limited Company (Pvt Ltd) is a separate legal entity registered under the Companies Act 2013, with limited liability for shareholders. Key features: minimum 2 shareholders and 2 directors (maximum 200 shareholders); cannot offer shares to the public; requires statutory audit and annual MCA filings (AOC-4, MGT-7) every year. Corporate tax rate: 22% (Section 115BAA) or 25% for eligible companies. It is the preferred structure for startups seeking investment — equity shares can be issued to angels, VCs and employees (ESOPs).
More Startup & Business terms
MCA (Ministry of Corporate Affairs)
India's government ministry administering the Companies Act and registering companies through the MCA portal.
ROC (Registrar of Companies)
Government authority under MCA that registers companies and LLPs and maintains statutory records.
DIN (Director Identification Number)
Unique 8-digit number assigned to every director of a company in India.
DSC (Digital Signature Certificate)
Electronic signature issued by certifying authorities — required for filing company/LLP documents with MCA.
LLP (Limited Liability Partnership)
Hybrid business structure with limited liability and partnership flexibility — governed by the LLP Act 2008.