Private
Limited Company
A private limited company is popular form of organization having a
minimum of two and a maximum of fifty members. The members have limited
liability and they cannot invite the public for subscribing to its
shares or debentures.
Features
- Separate Legal Existence: A private company has a
separate legal existence and is less cumbersome to form and
organize. It is relatively less cumbersome to organize and operate.
- Exemptions: A private limited company is not required to:
- File prospectus with the ROC.
- Obtain the Certificate for Commencement of business.
- Hold statutory general meeting or file statutory report.
- Limited Liability: The liability of the members is
limited to the extent of capital invested in the business.
- Continuous Existence: The company continues to exist even
if all the members die or opt out from it.
Advantages
- Continuous existence
- Limited liability of members
- Less legal restrictions
