Question

Define Private Limited Company.

What is a Private Limited Company?

Define private company.

Answer 1

A private limited company is a business entity registered under the Companies Act with a minimum of two members and a paid-up capital of at least ₹ 1 lakh (or as prescribed). It restricts the transfer of shares, limits the number of members to 200, prohibits public invitations to subscribe for shares or debentures, and does not accept deposits from outsiders. The liability of members is limited to the face value of shares held by them, and the word ‘Private’ must be included in its name.