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Quick Answer
A Private Limited Company is a separate legal entity registered under the Companies Act 2013, with limited liability, perpetual succession, and capacity to sue and be sued in its own name. Section 2(68) defines the type. Restrictions: minimum 2 / maximum 200 shareholders; restriction on right to transfer shares (typically through MoA/AoA); prohibition on inviting public to subscribe to shares. Private Limited is the default vehicle for VC-funded start-ups because it allows flexible share-class design (CCPS, ordinary equity, ESOPs).
Statutory reference
Section 2(68) Companies Act 2013
Related practice areas
Company under Section 2(68) Companies Act 2013 with restricted right to transfer shares, minimum 2 shareholders, maximum 200, minimum 2 directors. Default vehicle for Indian start-ups.
Private Limited Company is governed by Section 2(68) Companies Act 2013. A Private Limited Company is a separate legal entity registered under the Companies Act 2013, with limited liability, perpetual succession, and capacity to sue and be sued in its own name. Section 2(68) defines the type. Restrictions: minimum 2 / maximum 200 shareholders; restriction on right to transfer shares (typically through MoA/AoA); prohibition on inviting public to subscribe to shares. Private Limited is the default vehicle for VC-funded start-ups because it allows flexible share-class design (CCPS, ordinary equity, ESOPs).
Private Limited Company falls under Corporate & Business. NyaySevak matches you with a Bar-Council-verified advocate in the relevant practice area — the first consultation is free.
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