Private Limited Company

Private limited Company


Private limited Company is the most reputed form of business firm. A private limited company in India comes under the ministry of corporate affairs.


Private limited Company


A private limited Company is the most reputed form of a business firm. However, this type of company in India comes under the ministry of corporate affairs(MCA). moreover, these companies offer limited liability to the shareholders with certain restrictions. Hence, it is one of the most popular types of business entities.


Requirements to register a Company in India:


No of Shareholders 2 individuals

No of the Directors 2 individuals ( Can be 3)

Authorized Capital Rs. 1 lakh minimum

Paid-up capital Rs. 10,000




  • Company Limited by Shares

In these businesses, the associates’ liability is restricted to the minor share amount as mentioned in the Memorandum of Association. The shareholder cannot be held responsible or asked to pay more than his/her share capital invested in the firm.

  • Company Limited by Guarantee 

In a private company limited by guarantee, the associates ‘ liability is restricted to the amount of liability each associate undertakes in the Memorandum of Association. Hence, associates of a Private Limited Company Limited by Guarantee can not be held answerable for a sum greater than the amount of guarantee performed by the associate in the Association Memorandum.

  • Unlimited Companies 

Unlimited corporations are those types of firms that have no limitations on their associates ‘ liability. Each associate liability spreads over the total share of the business debts and liabilities. Consequently, an unlimited company’s creditors have the freedom, if wound up, to impose the company’s debt and liabilities on shareholders.

Despite not giving limited liability security to the shareholders, an unlimited company is still consider as a separate legal entity. The members of an unlimited business can not, thus, sued separately.



  • Limitation on Membership
  • Paid-Up Capital
  • Transferability of Shares
  • Name of Company
  • Limited Liability
  • Perpetual Succession
  • Separate Legal Entity


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