What is a Private limited Company?

Private Limited Company is governed under Companies Act,2013. Private Limited Company is the most popular legal structure for businesses. Private Limited Companies are those companies which require minimum two members for incorporation with maximum of two hundred members. As per Section 2 (68) of Companies Act,2013,a “Private Company”means which by its articles,-

• Restricts the right to transfer its shares;
• Except in case of One Person Company, limits the number of its
  members to two hundred:

Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause,
be treated as a single member:

Provided further that-

• Persons who are in the employment of the company; and
• Persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and
• Prohibits any invitation to the public to subscribe for any securities of the company;