Question

What is a private limited company?

Answer 1

A Private Limited Company is a privately owned business that raises its share capital through close friends, family, or private investors rather than the general public. It requires at least two people to start and can have up to 200 members. The shareholders of this company cannot freely transfer or sell their shares to third parties, and the company is legally prohibited from selling its shares on the stock exchange or inviting the public to buy them. It is privately owned and its official name always ends with the words “Private Limited” (Pvt. Ltd.).