Private Limited Company

Private Ownership companies are known as Private Limited company. It is a privately held business entity and entity limits owner liability to their shares, limited shareholder up to 50 and restricted public trading share. Startups and businesses choose a private company as a business structure.

Characteristics of Private Limited Company

1. Member –to start a private limited company minimum 2 persons are required and can go up to 200 members as per the companies act, 2013
2. Limited Liability– liabilities of every shareholder is limited in a private limited company
3. Index Of Member – It does not require to maintain the index of its member as required in public limited company.
4. Paid-Up-Capital– As an advantage of the private limited company only 1 lakh or such higher amount is minimum paid-up-capital.
5. Name– it is required to place a private limited company after the name of your company.

Advantages of Private Limited Companies

• Ownership
• Minimum Number Of Share Holder
• Legal Formalities
• Decision Making
• Management
• No Stock Market Pressure
• Long Term Planning
• Minimum Share Capital