A private limited company is a company privately held for small businesses. This type of business entity limits owner liability to their shareholdings, the number of shareholders limited to 200, and restricts shareholders from publicly trading shares.
FEATURES OF PRIVATE LIMITED
- It has a separate legal entity different from you
- The liability of each shareholder is limited to the contribution made by shareholder
- Companies in India are registered with the Registrar of companies (ROC) under Companies Act 2013. Anyone can check the details of the company through Ministry of Corporate Affairs (MCA). Also, details of all the directors are provided while the formation of the company. Hence a PLC form of business structure is trusted more
- A company has ‘perpetual succession’, that is continue or uninterrupted existence until it is legally dissolved
- A private limited can start from minimum INR 100,000 Share Capital