Is a Private Limited Company right for you?
A Private Limited Company is a separate legal entity: it owns its assets, signs contracts and can sue or be sued in its own name, and each shareholder’s liability is limited to any amount unpaid on their shares. It needs at least two directors — one of whom must be resident in India — and at least two shareholders; the same people can be both. It can have up to 200 members, and there is no minimum paid-up capital.
It suits businesses that plan to raise equity investment, offer employee stock options, or work with clients who prefer contracting with a company. The trade-off is more compliance than an LLP or a proprietorship: board meetings, a statutory audit every year, and annual filings with the Registrar of Companies whatever the turnover.