Private Limited Company
It is the most common incorporated business organisation in India. It is generally called as a 'Private Company'
A private limited company is registered with the below mentioned features and restrictions:
- Minimum and maximum number of shareholders in a private company is 2 and 200, respectively.
- Minimum paid-up capital is Rs.1,00,000
- Minimum number of directors are 2
- Share transfer can be restricted as per Articles of the company.
- Cannot accept deposits from the public and it can take loans only from shareholders, directors and relatives of directors.
- Cannot issue shares to the public.
- Less compliance with respect to company laws.
- Name of the company should end with the words 'Private Limited'.
A Private Limited Company is more flexible than a Public Limited Company as many of the restrictive provisions of Companies Act are not applicable to Private Limited Companies.