Private Limited Company - Explained

Most popular choice among today's Startups to bring visibility, and raise funding.

This document covers

1. Key Features of Private Limited Company
2. Steps to Register a Private Limited Company
3. Guidelines in choosing Company Name
4. FAQs

1. Key Features of Private Limited Company (PLC)

• Registration is comparatively Fast.
• It’s easy to fetch funding in a private limited company by transferring of shares.
• Easy to convert in to a Public Limited Company at any stage subject to fulfilment of eligibility criteria.
• Maintenance of Basic Compliances after registration of private limited company are comparatively complex.
• There exists no Bar on Turnover and Capital in a private limited company structure unlike in One Person Company (OPC).

2. Steps to Register a Private Limited Company (PLC)

While EZTax.in will take care of the entire process in registering a company, below are few steps to understand the process.

• Obtain Digital Signature Certificate [DSC] for the proposed Director(s).
• Obtain Director Identification Number [DIN] for the proposed director(s).
• Select suitable Company Name, and make an application to the Ministry of Corporate Office for availability of name.
• Draft Memorandum of Association and Articles of Association [MOA & AOA].
• Sign and file various documents including MOA & AOA with the Registrar of Companies electronically.
• Payment of Requisite fee to Ministry of Corporate Affairs and also Stamp Duty.
• Scrutiny of documents at Registrar of Companies [ROC].
• Receipt of Certificate of Registration / Incorporation from ROC.

3. Guidelines in choosing Company Name

The Ministry of Corporate Affairs (MCA) has issued an advisory on Name Reservation & Incorporation of Companies and LLPs on 17th March 2026.

1. Distinctiveness of Proposed Name
   • The proposed name should be completely unique and clearly different from existing names
   • Minor changes such as spelling variations, plural forms, or slight word modifications are not sufficient.
   • Adding common words like Infra, Tech, Solutions, etc. will not make the name acceptable
   NOTE

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Even if an NOC is obtained from an existing entity, the name may still be rejected if it appears similar in spelling or pronunciation

Example

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If the existing name is Zencare Pharmaceuticals Private Limited and the proposed name is Carezen Pharmaceuticals Private Limited, it will be rejected as there is slight word modification in this case

2. Restrictions on use Existing or Historical names

   MCA has notified the cooling period before using any historic or existing name.

   The cooling period or restricted periods are as follows:

   S.No	Particulars	Cooling period or restriction period
   1	Struck Off company	20 years from the date of publication in official gazette
   2	Company under Liquidation (dissolved)	2 years from the date of dissolution
   3	Struck Off LLP	5 years
   4	LLP under Liquidation	5 years
   5	Using old name of an existing company which has changed its name	3 years from the date of change of name of company

      NOTE

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   Non-compliance with these timelines will lead to outright rejection.

3. Do not use famous or commonly known short forms (abbreviations) in company/LLP name like BRICS, NHDC etc
4. Prior approval or in-principle NOC is mandatory where the proposed name includes regulated terms such as Bank, Insurance, Stock Exchange, Mutual Fund Chartered Accountant, Company Secretary, Cost Accountant, Architect etc. Failure to obtain such approvals at the name reservation stage may result in rejection.
5. Use of Foreign Geographical Names Inclusion of foreign country/city names like Italy, Dubai, Singapore etc is permitted only upon submission of documentary evidence of collaboration, joint venture, or MoU with entities from such jurisdiction
6. Trademark Considerations
   • The proposed name does not conflict with any registered trademark
   • NIC code aligns with the corresponding Trademark Class
   • Where similarity exists, a valid NOC from the trademark owner is required, failing which the application may be rejected
7. Consistent Name and Objectives If the company name suggests financial activities like loans, investments, chit fund, leasing then the business objects must also match. Otherwise Name will be rejected