A Private Limited Company is a privately-held business entity owned by private stakeholders.
The liability of shareholders is limited only to the extent of the shares held by them, and their personal assets remain protected.
Private Limited Companies in India are governed by the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013.
As per Section 2(68) of the Companies Act, 2013, a Private Company restricts the transfer of shares, limits the number of members to 200, and prohibits public invitation for securities subscription.
A Private Limited Company has better fundraising opportunities compared to traditional business structures.
Eligibility: Any two or more individuals planning to start a business with limited liability protection and corporate benefits can register a Private Limited Company in India.