Private Limited Company

Sole Proprietorship	Private Limited Company
Public Limited Company	Joint Hindu Family Business

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

• Registration Procedure Of A Private Limited Company