Private Limited Companies :
A private limited company is a company held for small businesses. The liability of the members of a Private Limited Company is limited to the number of shares respectively held by them. Shares of Private Limited Company cannot be publically traded.
Characters of Private Limited Company
To start a company, a minimum number of 2 members are required and a maximum number of 200 members as per the provisions of the Companies Act, 2013.
The liability of each member or shareholders is limited. It means that if a company faces loss under any circumstances then its shareholders are liable to sell their own assets for payment. The personal, individual assets of the shareholders are not at risk.
Index of members - A private company has a privilege over the public company as they don't have to keep an index of its members whereas the public company is required to maintain an index of its members.
When it comes to directors a private company needs to have only two directors. With the existence of 2 directors, a private company can come into operations.
It must have a minimum paid-up capital of Rs 1lakh or such higher amount which may be prescribed from time to time.
Statement of the company affairs which is issued by a company for its public . However, in the case of the private limited company, there is no such need to issue a prospectus because in this public is not invited to subscribe for the shares of the company.
It is the amount received by the company which is 90% of the shares issued within a certain period of time. If the company is not able to receive 90% of the amount then they cannot commence further business. In the case of a private limited company, shares can be allotted to the public without receiving the minimum subscription.
It is mandatory for all the private companies to use the word private limited after its name.
In a public company, regulation the shares of the company sold to the people. Otherwise, the shares sold or transfer to shareholders.Shares of a private company owned by the founder, managing director of the company. Shares are not sold in the open market. So there will be fewer share holders.
Persons In who Needs Company Owners Private Limited data:
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