Government of India | NITI Aayog

Private Limited Company

private limited company is a company, which is privately held for small businesses. The liability of the members of a Private Limited Company is limited to the amount of shares respectively held by them. Shares of Private Limited Company cannot be publicly traded. 

A private limited company is the most common form of business entity in India. It is easy to maintain and raise funds, offers limited liability to its members, offers flexibility, easy bank loan accessibility.

Basic requirements for a Private Limited Company:

  • There must be at least 2 members in the company.
  • The company shall be made for legal business and must not harm the society. The company object should not be illegal.
  • In case, if the registrar issue the certificate of incorporation to such business entity, then certificate will be void and registration will be itself canceled by the Central Government and appropriate proceeding will take place against the entity and the Registrar.