Private Limted Company

Helping your business get registered smoothly and compliantly across India.

Company

“In a Private Limited Company, minimum 2 directors and 2 members are required, and members cannot exceed 200.”

Private Limited Company – Definition (As per Companies Act, 2013)

A Private Limited Company is a type of business organization registered under the Companies Act, 2013, which is privately owned and restricts the right to transfer its shares.

According to Section 2(68) of the Companies Act, 2013, a private company means a company that has a minimum paid-up share capital as prescribed, restricts the transferability of its shares, limits the number of its members to 200 (excluding employees and ex-employees), and prohibits any invitation to the public to subscribe for its securities. It must have at least two directors and two members, and its name must end with “Private Limited” or “Pvt. Ltd.”.

This type of company provides separate legal identity, meaning it is legally different from its owners, and the liability of shareholders is limited only to the amount unpaid on their shares. Therefore, the personal assets of members are protected from business losses or debts.