The incorporation of a private company is governed by the Companies Act, 2013, Ministry of Corporate Affairs, and the Companies Incorporation Rules, 2014. A private limited form of Business incorporation is the best-suited form of doing business for start-ups and growing business.
A Private Limited Company is a corporate legal entity, wherein the business is run privately and is considered to be one of the most popular and easy to establish the business for startups.
In a private limited company, the owner liability is restricted to their shares. With the effect of the Companies Act 2013 the number of shareholders has been enhanced from 50 to maximum of 200 members. A Private limited company cannot invite the general Public to purchase its Shares. The Liability of the Shareholders and Directors is Limited in a private limited company.
Minimum of two shareholders and two directors are required and yes the two can be the same persons. Even a corporate legal entity can be the shareholder
