Private limited companies are owned by a select group, typically family or friends, unlike publicly traded companies.
This selected group is known as the shareholders, a private limited company must have a minimum of two shareholders and a maximum of 200 shareholders.
A private limited company requires at least two directors and one of them should be a mandatory resident in India.
Shareholders' liability in a private limited company is limited to their investment, their assets are safe from business debts.
A private company is a distinct legal entity for its owners. It has a legal identity and can enter contracts and sue or be sued in its name.
A private limited company (Ltd or Pvt Ltd) is a privately owned entity with restricted ownership, offering a secure and flexible business structure.
Section 2(68) of the Companies Act 2013: 'Private company' means a company that has a minimum paid-up share capital as may be prescribed, and its articles restrict share transfer, limit members to 200.
Private limited companies in India are a popular choice for entrepreneurs looking to start a business due to their advantages and simple structure.
Private limited companies are commonly adopted by many small to medium-sized businesses, including service providers, retailers, and manufacturers, for their operations.