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What is Private Limited Company?

Private Limited Company

Endors Pradeep Maurya Published On: 26 Jul 2019

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Endors Pradeep Kumar Published On: 01 Aug 2019

Private Limited Companies is the most common and suitable form of entity for carrying out business in India with a long term objective. A Private Limited Company is Incorporated and Governed by the Indian Companies Act 2013. Private Limited Company is a Purely Separate Legal entity distinct from its members and directors. The business under this structure can be done by making investment through the equity shares in the Company. It has the advantage of limited liability, greater stability and recognition. The Basic Requirement for a private Limited Company in India is to have Minimum Two Directors and Two Shareholders.

  • These are closely held businesses usually by family, friends and relatives.
  • Private companies may issue stock and have shareholders.Their shares need not be traded on public exchanges and are not required to be issued through an initial public offering.
  • Shareholders may not be able sell their shares without the agreement of the other existing Shareholders.

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