Private Limited Company

A 'Private Company' is a limited company formed with minimum of 2 members and 2 Directors. The maximum number of members in a private company is restricted to 200.

The name of the company should end with the words 'Private Limited'. A 'Private Limited' company is the most common incorporated business organization in India. It is generally called as a 'Private Company'.

A 'Private Company' is an incorporated business entity registered under the Companies Act, 2013, with the following features and restrictions:

  • Minimum and maximum number of shareholders are 2 and 200, respectively.
  • Minimum paid-up capital should be Rs. 1,00,000.
  • Minimum number of directors are 2.
  • Shares transfers can be restricted as per the articles of the company.
  • Private company cannot accept deposits from the public; it can accept loans and deposits only from its shareholders, directors and directors' relatives.
  • Private company cannot issue shares to the public.
  • Compliance and regulatory requirements under applicable company laws are fewer and simpler as compared to requirements prescribed for a public company.
  • The name of the company should end with 'Private Limited'.

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