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What is a Private Limited Company?
Private Limited Company is characterized by following features:
1. A private limited company needs to have a minimum paid up share capital of Rs. 1 lakh or any higher amount as may be prescribed.
2. In a private limited company minimum number of shareholders is 2 and maximum number is 50.
3. Private limited company cannot approach general public for subscription to the shares or debentures of the company. The funds required by the company are collected through the private circulation only i.e. directors, relatives and its shareholders.
4. The shareholders are restricted on transfer of their shares to general public.
5. Liability of every shareholder in a private limited company is unlimited.
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