Private Limited Company

A Private Limited Company is a popular and legally recognized form of business entity in India, governed by Section 2(68) of the Companies Act, 2013. It is incorporated as a private company and operates with a prescribed paid-up share capital, while strictly following specific legal conditions laid down in its Articles of Association.

Under the law, a private limited company must restrict the transfer of its shares, ensuring that ownership remains within a closed group. Except in the case of a One Person Company (OPC), it can have a maximum of 200 members. When shares are held jointly by two or more individuals, they are treated as one single member for counting purposes.