Private Limited Company


private limited company

The word “Private Limited Company ” defined under Section 2(68) of the Companies Act 2013 and means a company having a minimum paid-up share capital as may be prescribed (now it is optional to keep any minimal capital) and which by its articles],

  1. The private limited company is restricted to transfer its shares;
  2. The maximum number of its members is restricted to two hundred
  3. Prohibited to invite public to subscribe to its shares


  1. of Directors:

There shall be Minimum 2 Directors to form a Private Company and the maximum no. of Directors under the Companies Act, 2013 is also restricted to 200.

  1. Limited Liability Company

In a PVT. LTD. Company, the liability of all the members are limited to the proportion of the amount being contributed by them, it means that they are not personally liable for any loss on the part of the Company.

  1. Paid-up Share Capital

Prior to the notification issued in 2015 the minimum capital which was required to form a PVT. LTD. company was 1 Lakhs however, now it is kept optional.

  1. Name of the Private Company

It is mandatory to put the word “Private Limited” at the end of the name of the Private Company.


Below are the advantages:


The PVT. LTD. company has a separate legal entity features which means that it is an artificial person in the eyes of the law, any suit can be filed by the company or can be brought against the company ie., in the name of the Company.


This is one of the advantages of forming a PVT. LTD. Company the members are only liable to the capital contributed by them and no personal assets can be attached while any liability arises.


Member may come member may go the company will be in full force forever, this is the old saying when we talk about PVT. LTD. Company. Private Limited Company can only be dissolved through the act of law.


The image of a Private limited company is trustier as compare to other forms of business like proprietorship and partnership form which are not registered under the law for the time being in force.


It can raise funds easily through its members as well as from other financial institutions.

How to registered Private Limited Company 

Private Limited Company can be incorporated through Form SPICe+ which has been introduced by MCA recently the same can be read at the below link. The form offers 10 consolidated services in just a single webform:

What are the Documents which are required to incorporate a Private Limited Company

  • Identity proof of Directors;
  • Proof of Address of Directors;
  • Proof of Address of registered office of the company;
  • Director Identification Number (DIN) of all the directors, if already taken;
  • Memorandum of Association (MOA)
  • Articles of association (AOA)
  • POA

Difference between a Private and Private Limited Company

The common differences between a Private and Private Limited Company are as follows:

Features Private Limited Company Public Limited Company
Minimum members 2 7
Minimum directors 2 2
Maximum members 200 Unlimited
Invitation to Private No Yes
Issue of prospectus No Yes
Minimum capital 1,00,000 5,00,000
Managerial remuneration Cannot exceed more than 11% of Net Profits No restriction


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