Advantages

• Good for Startups
• Minimum 2 founders
• Up to 200 shareholders
• VC & Angel funding friendly
• ESOP possible
• FDI allowed in most sectors
• Limited liability protection
• Best for Scalable Startups & Funding

Promoters are Called

• Shareholders
• Directors

Structure Requirements

• Minimum Shareholders: 2
• Maximum Shareholders: 200
• Minimum Directors: 2
• Maximum Directors: 15 (beyond with special resolution)
• Minimum Capital: No statutory minimum
• Maximum Capital: No limit

NRI / Foreign Participation

• NRI as Shareholder: ✅ Allowed
• NRI as Director: ✅ Allowed (at least one resident director required)
• Foreign National Shareholder: ✅ Allowed
• Foreign National Director: ✅ Allowed
• Foreign Funds: ✅ Allowed under FEMA
• Approval: Automatic route in most sectors; RBI reporting required

Meetings

• Board Meetings: Minimum 4 per year(small cos 2)
• Shareholder Meetings: Minimum 1 AGM per year

Subsidiary

• Foreign company can set up Indian private limited subsidiary.

Dividend Repatriation (in case of NRI/Foreign share holders)

• Permitted subject to FEMA compliance.

Directors Remuneration

• Directors can draw salary

Minimum Statutory Compliance

• Books of accounts
• Statutory audit
• Tax Audit (if turnover exceeds 10 crores, 75 lakhs for professional income )
• Annual MCA filing
• Income Tax filing
• GST Filing
• TDS compliance
• Advance Taxes
• EPF/ESI/PT
• Statutory Registers
• Board and Shareholder meetings

Corporate Tax Rate

• 22% (115BAA option) or 25%/30% depending on turnover