Shareholders are the co-owners of the company. They can either be individuals or non-individuals, Indian or foreign in origin. Directors, on the other hand, are responsible for controlling the management of the company and acts as its agent. They are appointed by the Shareholders of the Company. Only individuals can be appointed as directors, whether Indian or foreign in Origin.

The Companies Act caps the limit of shareholders in a Private Limited Company to 200. For counting the said number of shareholders the shareholding by present or ex-employee under ESOP scheme is not counted. The company can have a maximum of 15 directors, however in case more directors are required the same may be increased with the approval of the Registrar of Companies.

Out of all the directors appointed in a Private Limited Company, at least one should be a resident Indian. Under the Companies Act, a director is considered to be a resident Indian if he has resided for more than 120 days in India in the immediately preceding financial year. Prior to the 1st of April 2021, this limit was more than 182 days. However, in a notification dated 1st of February, 2021, the MCA amended the provisions of the Companies Incorporation Rules, to reduce this limit to more than 120 days. This notification, and hence, the altered limit became effective from the 1st of April, 2021.rs are required the same may be increased with the approval of the Registrar of Companies.

The name of a company is the perfect way to communicate its brand to the general public. So, the name must not only be unique, but must also ideally communicate the business activity of the company. or the industry that it belongs to very aptly. Moreover, there are several significant laws like the Companies Act, the Trademark Act, and the Names & Emblems Act that prescribe certain guidelines for naming a Private Limited Company. Precisely, the name must not be identical or closely resemble the name of an existing company / LLP / a Trademark. More importantly, it must not be misleading and, therefore, must not contain words that show the patronage of the Government.

A Private Limited Company must be incorporated or registered with a valid office address. This is the address where all the correspondence and official communications for the company shall be addressed. Moreover, the company will have to maintain all its statutory documents, records and registers and this address only. The premises where the registered office is located can be rented or self-owned. It must be a fully-constructed and lockable premise on residential or commercial land.